Retirement guardrails
Hope you're having a wonderful Wednesday!
Neale Donald Walsch is an American author credited with the quote,
"Life begins at the end of your comfort zone."
And while there may be some truth in that sentiment, I would argue that the same does not apply when it comes to your retirement planning.
Ultimately, my job as a financial advisor is to keep my clients between two guardrails.
The area between these guardrails is your comfort zone.
And your comfort zone is specific and personal to you and your life.
Here are the guardrails:
You have to live your life free of the fear of running out of money because, let's face it... that's just a lousy way to go through life
However, we don't want you living so far beneath your means that you end up dying on a mattress stuffed full of money you could have spent (or given away)
And while you're chewing on the concept of these two guardrails, let me remind you that your life ain't a dress rehearsal.
We only get one shot to make the most of it.
So the simplest way I can explain what I do for my clients is to get them between these two guardrails (into their comfort zone) and keep them there.
Despite life's surprises, twists, and turns.
Despite volatile investment markets.
Despite military conflicts.
Or rising inflation.
And this is why financial and retirement planning isn't "set it and forget it."
Your life and the world around you is constantly changing, and if left unchecked, you could bounce right out of your comfort zone.
Outside the two guardrails.
This is why we regularly monitor your comfort zone (and your overall plan) and make small adjustments and tweaks along the way instead of letting 2-3 or more years go by and possibly having to make a big, expensive change to your plan - and your lifestyle.
Sound simple?
It is.
But that doesn't mean it's always easy.
And while there are a lot of moving parts that make up your personal comfort zone, there's no sense in overcomplicating things.
Especially when it comes to your money.
Isn't life already complex enough?
So while in some respects, life may very well begin at the end of your comfort zone, let me encourage you to ignore this advice when it comes to your retirement.
Getting - and staying - in your comfort zone provides clarity and confidence that just isn't there when you're sole focus is on your investment portfolio.
Or sticking to a percentage withdrawal rate from your portfolio.
What do you think?
Does the guardrails/comfort zone idea make sense to you?
Hit reply and let me know...
Links & Things
In my latest blog post I share my thoughts on the question:
In the midst of all the uncertainty that surrounds us every day, here's a great article from Ben Carlson that reminds us:
Predicting the future is hard (which is precisely why I don't even try)
I've always said (and truly believe) there's no such thing as a free lunch. But then I read this article:
Thank you, as always, for reading.
And if you have any questions or an idea for a future newsletter, blog post, or YouTube video, I'd love your input.
Just hit reply - I read (and appreciate) every email you send.
Until next Wednesday,
Russ