The 4 Pitfalls of No Plan

Share Post: facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.

There are some things in life you just can’t plan for: an unexpected illness, job loss, death of spouse, disability…While these major events can impact your life, having an effective game plan can help ensure that it doesn’t ruin your financial well-being. Let’s say you choose to not have a financial plan. How does this decision impact the confidence you want/need for your future? There are four major pitfalls for those who lack a financial plan:

  1. Emotional decision-making.Many investors choose not to follow a plan (or deviate from their plan) simply because they fear the market and want to jump ship when there’s a downturn. An effective financial plan is designed to help you pursue your financial goals even through unstable market conditions. In fact, when you have a plan in place, you’re helping to protect your assets when markets go down while also affording yourself the opportunity to experience potential growth when markets go back up.
  2. Missed opportunities.For those who fail to plan, regret tends to follow. A financial plan will help you save money so you can do the things you want to do in the future: buy a 2nd home, send your kids/grandkids to college, start a business, travel, etc. Even beyond your predefined financial priorities, an effective financial plan can help you pursue goals that you don’t even know exist but will arise in your future.
  3. Workforce woes.As retirement approaches, for those who have not implemented a financial plan, many find their retirement nest egg is insufficient and are forced to stay employed longer than they had hoped to. According to a US News & World Report study, the number of older Americans foregoing traditional retirement is on the rise, and the numbers will continue to go up.1 On the flipside, some retirees are forced out of work early. In a research study featured in USA Today, 60% of US workers retire sooner than they expected.2 In either scenario, having a plan in place can lessen the financial burden.
  4. The #1 financial fear is realized: running out of money during retirement.What do retired Americans fear the most, even more than death? Outliving their money. This also includes those who are considered high net worth. When you factor in longevity, inflation and rising healthcare costs, it’s a valid concern. In a recent report published by the Employee Benefit Research Institute (EBRI), this could be the reality for up to 83% of Baby Boomers.3 If you’re still reading this blog, you can probably guess what we recommend to offset your risk of running out of money during retirement and prepare for the rising costs of healthcare: follow your financial plan. Your financial plan should also include a spending strategy so you know how much money you can spend during each phase of retirement – that way you can enjoy your years in retirement.

None of us knows what the future holds. Don’t let the fear of the unknown be the driving factor in making life’s trade off decisions. Instead, gain the confidence financially planning provides in handling unexpected life events. Contact us today to schedule your personal listening session.

Share:
facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.
Share Post: facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.

RECENT POSTS

The Stages of Retirement

By Mike Gertsema, Senior Wealth Advisor When we meet with most of our clients, we discuss retirement in different stages that we call the Go-Go Years, the Slow-Go Years, and the No-Go Years.

Marketing Slogans

By Mike Gertsema, Senior Wealth Advisor I see all the same marketing and advertising that you see from investment firms saying how they “offer something different” compared to other investment firms. Their slogans have been well-researched and sound great, but they’re missing a very importa …

4 Hurdles in Retirement Beyond Your Investment Portfolio

Becoming hyper-focused on only one aspect of a problem is pretty much never a good approach. A racecar driver who only focuses on speed and ignores strategy won’t win races, at least not many of them. A carpenter who only hammers in nails won’t build strong structures. 

Your Silicon Valley Bank Questions Answered

You likely have heard about the recent Silicon Valley Bank (SVB) collapse and probably have questions. Here, we provide you with unbiased answers to your questions.

1 2 3 115 116 117

Get in Touch

In just 15 minutes we can get to know your situation, then connect you with an advisor committed to helping you pursue true wealth.

Schedule a Consultation