Why Garry and Cindy were struggling with the nastiest and hardest problem in finance?

Quite simply, they were dealing with the ‘nastiest and hardest problem in finance’.

Retirement planning requires many decisions which involve high levels of complexity and uncertainty.

Speaking with Garry and Cindy recently, they along with everyone else struggle with the most difficult and complex problems in planning their retirement with confidence.

And confidence is what they were lacking in a big way. While they had tried to educate themselves and figure it out on their own, they were struggling. They’d come to a dead end. Lost at sea.

While they could have stuck their head in the sand, procrastinate and put off for longer.

Retiring at the right time was far too important to them. They did not want to sit there later in retirement regretting the fact they didn’t take action sooner. They knew time was ticking away…

It was made worse with everyone around them adding to the confusion with their thoughts and advice. 

Fortunately for Garry and Cindy, they reached out for help when they felt they had reached their limits. They wanted to retire, make sure they were on the right path, and did not want to risk running out of money.

Nor did they want to forgo experiences and memories in retirement due to lack of understanding or confidence surrounding their finances.

As we talked it became apparent within a few minutes why they were having so many problems with planning this huge transition. It’s the same issue most people have whether they know it or not.

Why am I able to pinpoint it in every conversation I have with people trying to plan their retirement?

Quite simply, I’ve had thousands of conversations spanning over two decades planning people’s retirements and walking alongside them and I’m yet to hit fifty. So, I’ll be around for while.

I’m not trying to big note myself here. It’s not my style.

Just pointing out I have the experience and knowledge to know why this huge problem exists and how to fix it with simplicity.

Why are people struggling to resolve the nastiest and hardest problem in finance?

Given the huge amount of information floating around the internet, you’d be mistaken for thinking it would be easy, right?

Wrong…planning one’s retirement is extremely complex.

You have to deal with your emotions, biases, doubts, self-worth, unknowns, uncertainty and if that wasn’t enough you’ve got to deal with the money side.

Working out if you have enough in the first place and then to manage those funds throughout a 20, 30 year or more retirement. It’s not something people are familiar with.

The honest truth is there are so many inputs and outputs to consider. Any one could alter your retirement pathway in a positive or negative manner.

For people retiring today, they have participated in the superannuation system in one way or another. It’s a compulsory form of saving which requires little effort on your part.

If it was left to most individuals, it’s unlikely most would participate. The payoff is too far down the track…

So, the government has mandated your savings. There’s little for you to do.

It’s largely a set and forget system, the government’s got my back mentality…

It’s like you don’t have to think about it, except for the few who are motivated to build their assets other than what the government mandates.

And that’s where the problem lies. This creates disengagement, you’re not responsible for it until retirement lands on your doorstep and you’re forced to face it. Whether you like it or not.

This disengagement is dangerous. For most of your working life you can remain disengaged and as retirement approaches you’ve got to do a 180 degree swing. All of a sudden you are responsible for some of the most complex and difficult decisions about your finances. 

Your thrust into this retirement storm. Needing to miraculously solve this complex problem when it really matters to you financially and emotionally.

Your life’s savings are hanging in the balance…

As humans, when problems involve high levels of complexity and uncertainty, many just don’t know what to do and step away from the problem.

Avoiding the nastiest and hardest problem in finance leads people to drift

Apart from the isolated few, who are that way inclined (financially savvy and I’d even seen these types of people get it wrong), most don’t tackle this problem. Or they leave it too late. They tend to drift because it’s too complex to resolve.

But drifting is one of the biggest mistakes you can make as you hurtle towards retirement…

You may want to check out this video, “Which retirement path are you on?”

Either two things happen at this point:

#1 You get yourself in so much of pickle, you have to live a frugal existence in retirement, constantly worried about how far your money will go.

#2 Or you are so scared of running out of money, you end up living a frugal retirement. When you are in your no-go years (frailty years) you sit there regretting you did not do more with your retirement.

Here’s the thing, you are as close as you’re ever going to be to your ideal retirement today.

But you need to make a conscious decision to take action.

To make the right moves to make sure you step towards the right pathway to make sure you can live a comfortable retirement lifestyle in your retirement years. Knowing you have the financial resources to bring those retirement dreams to life. Turn them into experiences and memories in your retirement years.

A methodical framework to resolve the nastiest and hardest problem in finance

So Glenn, how do you resolve this if it is so hard?

I’m glad you asked…

For 99% of people I speak to, they are thinking about retirement all wrong. They have the wrong mindset. But it’s not their fault…

They start with what they haven’t been engaged with for 20-30 years, their super. They think their super fund is driving their retirement.

Before you start sending expletives that I’m trying to sell you a product. I’m agnostic towards products (super funds).

I couldn’t care less what super fund my clients used, why? It’s the structure that makes all the difference, not the product. Too many people spend way too much time on the product and neglect many parts of resolving the nastiest and hardest problem in finance…

Planning retirement with confidence

Most people don’t have a proven methodical framework to work through all the retirement decisions let alone knowing where to start.

You need a framework to guide your decisions, step by step…

The pathway to a KICKASS retirement lifestyle

Step #1 What’s important to you?

It all starts by mapping out what you want out of retirement, not just the bucket list items, but what’s important to you.

Many don’t even know where to start when it comes to this. That’s why we have a number of short exercises we have every client complete prior to the first meeting. It gives us valuable insight into where people are in life right now.

At our first session, we explore this further to completely understand what’s important to our clients and what they want out of retirement.

There is a consistent theme we find. People are looking for time freedom. To breakfree from the workforce, take control of their time and do things when it suits them.

I’d find it difficult to plan the money side without going through this step.

A recent client was hesitant at first and by the end of the first meeting, they were so happy we facilitated this for them. It confirmed both husband and wife were on the same page.

I’d go as far as saying this probably saves a few grey divorces…

Step #2 Is your retirement lifestyle feasible?

Yes, this part is a number crunching exercise. But without all the noise of what super fund to use or what investments are best for you.

It’s purely about working through if your retirement plan is feasible. Is it doable…

This is where all the inputs and outputs come together. Exploring all the options and working towards a feasible retirement plan you are comfortable with.

It could be there are a number of pathways you could be considering, both with different endings.

Only last week, we sat down in front of a couple to work through their feasible plan. They had invested wisely over their working life, so money was not really an issue. The husband was confident, but the wife wanted confirmation.

They’d built up a good amount in their super fund along with some investment properties outside.

Their mandate was to spend as much as they could, they did not want to leave a big legacy, they wanted to live life. There would be enough for the kids.

Without selling the investment properties, they were going to be able to live well above what they had planned for. However, now they are thinking about what’s possible if they sell their properties to live an even better life in retirement. Do a few more luxury holidays and live life to the max…

Having said that, they missed a few turns along the way. Missed out on some opportunities to maximise their finances.

Now they are looking ahead with more clarity and confidence, even asking if they could retire a little earlier than they were planning for. All was possible for this couple.

On the other hand we have clients who have a little more work to do. But this number crunching exercise helps to highlight and prioritise what needs to be done. Then the decisions become far more easier.

It’s about putting all the options on the table and making a confident decision.

Step #3 Building a retirement roadmap

By this stage, you’ve set a solid foundation to now make important and confident financial decisions.

It’s time to make the plan resilient. Structure everything so your plan can deal with any surprises life throws at you and there will be some. You just don’t know what they are yet.

Optimising your retirement plan is critical for taking advantage of any financial tactics and strategies. Maybe catch up on a few you missed or haven’t even thought about.

This step is about putting as much money in your pocket before you hit retirement. Contrary to what many believe, some require time and planning to achieve. It comes back to the landscape which is complex and hard to navigate.

For instance with the couple I mentioned above. There were a number of financial strategies they’d benefit from. Yes, it would have been better put in place five years ago, but we had to now make up for lost time. This would put dollars in their pocket…

We’d also run a scenario where they could take less investment risk and still achieve their retirement lifestyle. Where they’d experience less ups and downs in their super without any impact on their ability to fund their lifestyle. Something the wife was keen to implement.

This step is about putting all the components together so they work harmoniously together. It’s like a well tuned financial engine.

Ready for you to step forward on the right pathway towards living your ideal retirement lifestyle with the confidence you’ll be okay. That you have everything covered.

But it’s not the end…

Even though our clients have their roadmap. Life changes, markets change and legislation changes. This means you need to regularly review your retirement plan and pivot when the time’s right.

Ready to resolve the nastiest and hardest problem in finance?

Well, it’s easy, it all starts with a short 15 minute Retirement Clarity Call.

We’ll have a quick chat about where you are at in your retirement planning journey. Help pinpoint any gaps and if it seems right, we’ll discuss what the next steps are.

There’s no promotion of any financial products. In fact, I’m agnostic when it comes to financial products and have absolutely no interest in any financial product.

We are here for one purpose, to help resolve the nastiest and hardest problem in finance so you can go and live a KICKASS retirement knowing you’re going to be okay.

It that resonates with you, click here to book your Retirement Clarity Call by clicking here.

Glenn Doherty – CFP – Financial Planner | Retirement Planning Specialist |Retirement Planning Made Simple for over 55’s within 7 years of retirement

We work with people in Adelaide and around Australia virtually via zoom!

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