Is Conventional Financial Wisdom Leading You Astray?

This new episode of the Retirement Solutions Show begins with a discussion on Conventional Financial Wisdom (CFW). CFW leads us to believe many ideas about retirement that simply aren’t true nowadays.

The guys discuss some of the most common retirement myths they see people falling victim to and how to educate yourself for a better retirement.

  • [1:20] There are several pieces of Conventional Financial Wisdom that, if followed, can lead you off course as you plan for retirement. We share some of the most common assumptions and myths.
  • [6:12] CFW tells us that expenses will go down in retirement. Scott Stiegler challenges you to take a vacation and not go anywhere… will your expenses go down or will you get bored and seek entertainment (aka spend $)? Additionally, in retirement, your number of tax reductions can go down, making your expenses go up.
  • [7:38] Ralph Hicks discusses the 3 phases of retirement (Go-Go, Slow-Go, and No-Go) and how factoring them into a written plan can alleviate financial stress.
"One of the reasons a written plan is so valuable is because it gives you permission to do things with your money."
Ralph Hicks
President, Investment Advisor

More key takeaways from this episode:

  • [9:05] Yahoo Finance warns that a market downturn in the last 3-5 years before retirement could “demolish” your portfolio, but we keep hearing that if we don’t stay in the market, inflation will eat of our savings. The guys share advice about investing risk for people in their 50s and 60s.
  • [11:34] The day you retire is a crucial time in your financial life because it’s when your wealth is at its peak. It’s also when you have the most probability of impacting your retirement, whether positively or negatively, based on how you start managing your money.
  • [12:47] What happens if there is a market downturn in the next few years? We share tips for people in their 50s and 60s who could be impacted by this.
  • [16:05] We give wealth management tips for people who would rather stay out of the stock market.
  • [16:45] More people are turning to roboadvisors nowadays. We share some of the benefits a roboadvisor can offer, as well as some of their limitations.
  • [19:03] Technology has changed the financial world. It has improved the ways people can manage their money. It has also allowed more people to get invested. However, more complexities arise as you approach retirement, and most roboadvisors aren’t able to provide many benefits past that point.
  • [22:57] Are all financial advisors the same? We share some of the key differences you should consider when selecting an advisor.
  • [33:58] Attorney Matt Danner answers questions about estate planning. What is an estate plan? Do I need one? Are there any barriers to getting one? Hint: they’re not just for rich people.
  • [44:49] 70% of people responding to a Prudential survey say they are stressed about money. Will we ever reach a point where we don’t have stress about our financial situation? David Hicks thinks so, and he shares how you can get there.
"If you're worried about your financial security, why aren't you doing anything about it?"
David Hicks
Vice President, Investment Advisor

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