Podcast Episode 240: Flying and Financial Planning

Today’s Wisdom:

As travel begins to open up more and more across the country, people are headed back to airports to visit friends and family and quickly reminded about many procedures that need to be followed. Today we’ll help you make the most out of your next trip to the airport by looking at the comparisons to your financial plan.

Want to save time? Click the timestamps below to jump ahead to specific spots in the episode.


What You’ll Learn:

Anytime you go to the airport, you know you can expect a few certainties. From security procedures to overpriced snacks and books, planning ahead will save you a lot of headaches (and money).

That sounds a lot like financial planning, right? There are actually a number of similarities between traveling through an airport and preparing for retirement. On this episode of Money Wisdom, we’ll take you through the comparisons and leave you with a different perspective for your next trip.

Let’s start with passing through security. Whether you’re in the general line or TSA pre-check, there are certain items you can’t take with you. When you think about retirement, there are certain products or investments you also shouldn’t be entering retirement with.

Large concentrations of stocks would be the item we suggest leaving behind when you step on the retirement plane. Many investors fall in love with the company they work for or used to work for. That’s fine while you’re working but you should be very cautious to have a large percentage of your portfolio in one company. General Electric is a perfect example of a company that’s been hit hard over the past few decades, and it has become dead money for many investors. If you were heavily allocated to GE, it would have caused problems in retirement.

Speaking of security checkpoints, have you signed up for TSA Pre-Check? It comes with a cost but is worth it in the long run. The easy comparison here would be a financial advisor. Most wealthy people have advisors, and they do so for a reason. They aren’t doing it on their own for multiple reasons. They’re relying on a professional to manage their money and design investments to fit a financial plan. But you don’t have to be extremely wealthy to benefit from a comprehensive retirement plan.

Now let’s talk about your gate number. When you arrive at the airport, you check your boarding pass or your airline app to see which gate you need to head towards. But you have to be paying attention because it could change at any time. The equivalent to this in financial planning is your retirement date. You might have one idea in mind, but multiple factors could lead to you changing that date, such as layoffs happening or opportunities for different jobs open up. Make sure your finances are in order and your plan is buttoned up so that you can be prepared for any life change.

The final thing we want to talk about are those overpriced snacks, books, and tourist items you pay for once you’re inside the airport. We all know it’s going to cost us more in the airport than outside of it, so where would you find yourself paying more depending on where you get it? The best example we can point to is when a client has to fix something years later that they could have done earlier. Each year the cost of things rises so you end up costing yourself more by not addressing an issue when it first arose.

These are a few of the things that we all experience in the airport that relate back to our finances. Being proactive with each of these will put you in a better position in retirement, and our Money Map review is always a great place to start.

[0:19] – Reaction to a volatile week in the market

[3:04] – Items you can’t take on the plane

[5:33] – TSA pre-check

[8:16] – Gate number and changes

[11:08] – Overpaying at the airport

[13:17] – Money Map review process

Thanks for listening to this episode. We’ll be back again next week for another show.


Final Thoughts:

“It’s a scary time if people don’t work with a firm that believes that some people’s money should be safe or a portion of it should be safe.”

– Joel Johnson

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