When it comes to investing, one of the most common concerns is how to achieve ‘reasonable returns,’ particularly as retirement approaches. The term ‘reasonable’ can be quite subjective and varies greatly from person to person. It’s influenced by individual risk tolerance, financial goals, and the stage of life you’re in. In the recent podcast episode of Money Wisdom, Jake Doser, CFP® will unravel the complexities behind crafting a personalized investment strategy that ensures retirement readiness without unnecessary risk.

This is a question that people often have a lot of angst or anxiety over because they’ll either feel like they aren’t making enough or that they might be taking too much risk. This question pops up all the time and seems to be doing more so recently because of the craziness in the market.

As with most everything else in financial planning,  a ‘one size fits all’ approach does not apply in financial planning. Instead, investors should strive to understand their unique financial situation and create a Money Map that navigates them through market volatility and toward long-term prosperity.

We also touch on the critical transition from aggressive growth strategies to more conservative approaches as one nears retirement. It’s essential to consider not just the potential gains but also the impact of potential losses on your lifestyle. A significant loss can have a more profound effect than modest gains, underscoring the importance of a well-thought-out financial plan over gut feelings about investments.

In addition to investment strategies, there’s a behavioral aspect to this answer as well. Two households with identical financial situations may require different strategies because of their unique spending habits, risk profiles, and life goals. We have to take that into consideration and truly understand your full financial picture before building a plan that aligns with your needs.

A number of factors will go into the answer we give someone when they ask about return on their investments, but our Money Map process is the best way to get that customized plan started.  

Here’s some of what we discuss in this episode:

• Why the question is important and some background on what goes into the answer.

•How do you come up with your number?

• Why two households with the same assets might need two completely different plans.

• How do you come up with this number when you can’t predict what’s going to happen the next decade?