The last thing a retiree needs to be worrying about in retirement is running out of money. Having that fear – justified or not – will keep you from fully enjoying everything you have been working towards.
But the reality is many people do lack the confidence to spend their money in retirement because they can’t overcome that concern. In this episode of the podcast, we want to dive into this issue and discuss why it happens and what you can do to change your outlook.
When we come across this from someone that meets with us, the driving force behind the worry is a lack of planning. It can seem like a cliché answer but it’s so true. The entire reason you build a plan is to replace that doubt with confidence. And part of the planning process is formulating an income plan that will ensure you have enough money to last your entire requirement.
The other reason people often lack confidence is a little more difficult to get rid of. Whatever the reason(s), people often have a psychological barrier to spending because of how they’ve always approached finances. Those habits might always be there, but we can build a retirement plan that lays out a clear picture of your income and expenses so that you know how much you’ll be able to withdraw every month.
When people try to plan for retirement on their own, they often get too focused on maximizing the rate of return that they’re getting on their money. But the truth is that you don’t have to get the best rate of return to guarantee yourself enough money in retirement. It’s about smoothing out those returns over time much like a pension fund would do.
To help you get a clearer picture of how this works with our clients, Joel will share a couple of examples on the podcast of people that he’s worked with to build a plan to overcome these challenges. As always, a great place to start if you are lacking confidence is our Money Map Retirement Review, which you can contact us about now.
0:41 – Fun Fact of the Week
2:31 – Why do we lack confidence
4:371 – Figuring out a rate of return on your money
6:53 – Example of giving a client confidence in their retirement spending
9:13 – When you have to talk to someone about lowering spending
11:59 – Money Map Retirement Review process
“We always felt our financial needs were in very capable hands. Alex Angst is great to work with. Our advisor always made us feel he had our best interests at heart and explained things so we could understand them.”
“We’ve been clients of Johnson-Brunetti for > 10 years. We’re enjoying a comfortable retirement as a result. Many thanks to Joel and our CFP, Eric Hogarth. I wish we had plugged into this decade approach back when we were in our 30s.”
“Working with Johnson Brunetti has had a positive impact on my life by providing me with the knowledge, confidence, and peace of mind to move forward with my retirement plans. The process of getting to this point, through their guidance, has been informative and pleasurable.”
“I view your company as one that puts my interests first. I think that is very uncommon and very refreshing. “
“Matt does an awesome job! So easy to understand and he listens to our concerns and addresses them! happy I chose your firm!”
“I have been pleased with the help and service I have received from the company. I have met several team members on Eric’s team and have found all of them very well prepared to meet with me when reviewing my portfolio. I always feel that I am an important customer and appreciate that very much. I hope the firm continues to focus on the customer and maintains its great service. I think you do a great job for someone like me!!!! I’m happy I chose your firm!”
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