What do you do when your retirement plan shows cracks and blows up?
Retirement can be a scary time…
Anxiety and stress starts to kick in as you cross that line from your working life to one of leisure and adventures.
It’s the uncertainty and fear of what happens next…
Going from a structured life of some 30 or 40 years to unstructured.
You want it to be a smooth journey…
The reality is the world around you is constantly changing.
Not only is the world, the economy and investment markets changing, but our lives are constantly changing…
No matter what you do, your plan is not going to go according to plan…
It is going to show signs of cracks and I’d go as far to say that your plan is constantly blowing up. I don’t say that in a negative way…
It’s the things you can’t see…the changes in your life and your assumptions don’t work out the way you thought.
Your future is filled with uncertainty making it hard to know what actions to take.
Rarely does a retirement plan go according to plan.
Knowing how to manage through these times is the difference between despair and confidence…
It’s something we help clients with on an ongoing basis. Helping our clients feel financially secure.
Knowing they have a plan to do all the exciting things they want in retirement. All the while knowing they will not run out of money.
Let’s talk about what that looks like…
Get your PDF copy of ENOUGH? here…
Examples of cracks and the plans blowing up…
Expensive yacht – One of my clients stopped working in their 40’s to sail around the world. Unfortunately COVID hit and derailed their plans part way through. Prior to this they wanted to upgrade the yacht they had.
Wanting to purchase a $1m yacht…more fancier and newer than the one they had.
However, on their first yacht they were able to claim substantial tax deductions as it was chartered while they were working. Paying for a large chunk of the yacht.
We ran the numbers…it was not going to work out the same as their first yacht. In fact, financially it was going to be a BIG mistake. Seeing this they decided not to proceed and maintain the one they had.
Climbing back from the ledge – like most people when investment markets fall significantly and at a rapid pace. People PANIC. Wanting to sell to preserve what they have.
One of my clients (not the only one) wanted to do this through the Global Financial Crisis and more recently in March 2020 when COVID 19 hit.
Reviewing how my client’s investments were structured, we had sufficient cash reserves to cover their income for some time. They didn’t need to sell anything.
Many think they can time their entry back in. The reality is they can’t. This is a mistake you can’t afford to make in retirement.
Health scare – we’d worked with another one of my clients…setting out what they wanted to achieve in retirement. The adventures they wanted to experience.
Twelve months in and they were rocked by a health scare…blowing up their plans completely.
We worked with these guys to rework a new plan and pivot in a new direction.
It’s not just the financial side that can blow up, but also the plans you had for your lifestyle which can blow up…
If the last two decades of helping clients plan their retirement has proved anything. Retirement plans rarely go according to plan.
The key is being able to narrow in on the potential range of outcomes as you take one step forward and the future becomes clearer.
What do you do when your plan starts to crack and blow up?
Observe – getting clear about your current reality. In reality the work we do on an ongoing basis for clients is helping clients navigate an ever changing landscape.
It’s about making sense of where you are. What’s going on and what impact is it having on you and your plans?
Orientation – what action needs to be taken. Exploring all the possible options available to you at that point in time.
Looking at the pros and cons…scenario planning…stress testing…taking on board opinions to assist with knowing what the next steps could be.
This step can be a little like reading a tonne of reviews on a pair of sports shoes. You can be less clear about your decision.
It may provide clarity at first…it’s about considering all the nuances…what happens if you do X…what happens if you do Y.
It can feel a little crazy as you seek clarity in a sea of complexity but an important step.
Decision – what’s the next step? After taking all these considerations into account and understanding a client’s unique situation we can say, this is what we need to do…
Act – take the next action.
As you walk this journey…every step you take more information will become available to you. Information you can apply to your retirement plan.
Get your PDF copy of ENOUGH? here…
What can an astronaut teach you about navigating retirement?
Recently I was reading about how astronauts prepare for their time in space. Interestingly, 10% of their time in training is on what they know.
The rest of their time (90%) is spent preparing for the what if scenarios. The things they don’t know.
Retirement planning is no different. While you may spend a lot of time creating your initial plan. It’s the stuff you don’t know that blows up your retirement plan.
That’s why it’s important to work with a financial planner who has walked this path time and time again with pre-retirees and retirees.
To reassess and pivot as more information becomes available as you take one step at time towards and through retirement.
45 days to Retirement Clarity…
Imagine for a moment you made one decision today that could result in you having all the answers to your retirement questions in 45 days.
You’d know how much money you needed for the rest of your life…the strategies and tactics to safeguard it and when it’s feasible to transition to retirement with confidence.
A complete retirement roadmap to guide you on your retirement journey…
Would that be valuable for you?
If you’re open to it, schedule a call with Glenn to discuss how you could have a completely personalised retirement roadmap in 45 days or less.
Request a call by email Glenn at gdoherty@jigsawprivatewealth.com.au or click here to schedule a call.
Glenn Doherty – CFP – Financial Planner | Helping people within 10 years of retirement achieve a successful retirement
We work with people in Adelaide and around Australia via virtual meetings!
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An opportunity to talk through some of your challenges and questions you have around your retirement.
Achieve some clarity and maybe a roadmap on how you can achieve a comfortable retirement.
Schedule hereAdvice Disclaimer: Any reference in this publication to the provision of advice refers to advice of a generic nature, and should not be taken as product or investment recommendations. Before any action is taken based on the information provided, independent financial advice from a licensed financial adviser should be sought. Financial Freedom Project Pty Ltd ATF GA & DC Doherty Family Trust Trading as Jigsaw Private Wealth is a Corporate Authorised Representative of Exelsuper Advice Pty Ltd. The information contained in this publication is of a factual nature only and is not intended to constitute financial product advice. Information is current as at date of publication. This is an online information blog. It does not imply an offering of securities.