Realistic Expectations

Realistic Expectations

The Prelude:

How realistic are your expectations when it comes to making plans for your retirement? We’ll give you a clear understanding of the planning process.

The Bass Lines:

Realistic Expectations: The Context.

  • [1:32] We had a couple to come in and outline their vision for retirement. They listed out their travel plans, the income they’d need, and all of their investments. While they were a little over-protected in the market, they had enough money to meet their income needs, and it was relatively easy to build them a plan. However, the wife simply couldn’t believe they would have less money at their time of death than when they came in for that initial visit. Of course, you can’t give up income, start withdrawing from your retirement accounts, and maintain your level of wealth. Nonetheless, the wife simply couldn’t believe that reality. Before we jump to pointing the finger at the wife, it’s important to think, “What unrealistic expectations do I have about my retirement?”

Realistic Expectations: When Can I Retire?

  • [4:43] Often we find folks have unrealistic expectations of when they can retire. While you might have an ideal retirement age in your head, you have to make sure the math is going to add up. On the other hand, you might feel certain you don’t have the money to retire. However, reality might suggest you do. It’s all about building a plan that’s based on your goals and the amount of money you’ll need to attain them. Don’t let your feelings drive you. Work with your advisor, and do the math. Find out with certainty what you’ll need to retire successfully.

Realistic Expectations: How Much Growth Should I Expect? 

  • [6:43] The answer to this question totally depends on the amount of risk in your portfolio. If you’re about to retire, you don’t want your portfolio to be heavily exposed to the market. However, if you have a portfolio exposed to moderate amounts of risk, then you shouldn’t expect to see as much growth either. You can’t always have your cake and eat it too. While a protected portfolio will continue to grow, it probably won’t fluctuate like your portfolio did when you were aggressively investing.

Additional Melodies:

  • [8:48] – How Much Income Should You Expect To Generate From Your Investments?
  • [9:40] – How Much Income Do You Need?

The Crescendo:

The Encore:

The host: John Stillman – Contact – Book – Call: 919-391-3446