Episode 162: The Most Important Part of Retirement Planning
Today’s Prep:
Just what matters most when it comes to planning and saving toward your retirement? We compare notes between a number of experts and David weighs in on how and where to focus your efforts.
Equipping Points:
What is the most important part about retirement planning? Is there one thing that is more crucial than all the rest? We searched through the web to find out what some experts say is key to retirement planning and then see what David thinks matters most.
Retirement is a big shift in lifestyle, so some might think that you first need to determine how to spend your time in retirement. David says he has had a lot of clients however who appreciate the lack of structure. They may plan to travel and spend time with family, but a lot of the fun of retirement is letting the time fill itself as you go.
When saving for retirement, some say, start now! This advice is very high on David’s list as well. It’s super important to take a stab at the plan early. Visualize and dream a little bit about what you think it will be like to retire and what you want it to be like. Live below your means and save systematically. Starting early makes a huge difference.
How much you’ll spend in retirement is hard to predict, but David says that should not stop you from planning. Have you stress-tested your plan? It’s important to have an idea what you think you’ll spend in retirement once you’re getting to your 50s and 60s. You want to know what kind of lifestyle you’ll be able to afford.
Are proper allocations arguably the most important step? David says you need to have your asset allocation goal be to have appropriately allocated investments for your risk tolerance. This will keep you from doing something emotion in a market downturn that could be bad for your plan.
Is making your retirement fulfilling the key to success? Among David’s clients this isn’t a big dilemma, mainly because their financial plan is able to support their desires in retirement. Does picking the right financial advisor make all the difference? While it can have an impact as they help you make decisions, David still doesn’t think it’s the most important part of retirement planning. For him, it’s all about starting early. When you start early with saving and planning, that will take you where you want to go in retirement.
Listen to the entire episode or skip ahead using the timestamps below.
0:23 - It’s still snowing!
1:59 - What is the most important part about retirement planning?
3:16 - Decide what you want to do with your time.
5:55 - Start now.
8:28 - How much you’ll spend in retirement is hard to predict.
11:00 - Are proper allocations arguably the most important step?
12:55 - Is your retirement fulfilling?
15:14 - Picking the right planner makes all the difference.
16:59 - What does David say is most important?
Today’s Takeaway:
“Just living below your means, you can make a pretty nice retirement for yourself without doing anything spectacular."
– David Dickens
KC Financial Advisors Blog


