What Retirement Planning Requires

Retirement planning requires innovation and adaptability.

Barron's looked at the way in which advisors counsel clients when clients want to retire earlier than planned. The article lacked innovative thought and had a couple of really odd comments from advisors.

One advisor is quoted “A lot of people believe that Social Security is going to be a huge part of their retirement income. It’s a sad thing.” This was the strangest comment in the article. Social Security Administration wants people to know how much they will be getting. It sends mail every year with this information or sends an email nudging people to login and see how much. The quote almost implies that his clients don't know how much they will get. "How much will I get" is typically followed by the advisor telling the client how to get their info. How much will you, reading this post, get? How much will your spouse get? What does that add up to? Is that amount a lot of money relative to your spending or a little? You know the answer to the question posed above, you're not going to be surprised. You may not like the answer, that's a different matter, but if you are due to get a combined $3000 and you spend $15,000 month you're not going to be surprised. To not be in touch with your PIA, your primary insurance amount, past a certain age whether that is 50 or some other age, is to essentially put your head in the sand.

The article spent a good amount of space on the unknowns of healthcare costs. This is of course a looming threat for everyone as they get older. This is where innovation and adaptability have to come into play but I admit it might be difficult for an advisor to weigh in here with clients. On this front, innovation and adaptability pertain to behaviors that are in our control to modify to give ourselves a better chance at a successful outcome which in this context is money not spent on years of prescriptions and frequent doctor visits.

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