Regarding any Financial Plan, it is important to remember these four hard truths:
- There are only two possible financial outcomes to your life. Your money either outlives you or you outlive your money. Everyone reading this will experience one of those outcomes.
- Failing to plan is planning to fail. With a well thought out financial plan in place that is adjusted for reality over time, your money has a chance of outliving you. Without a plan, this isn’t very likely.
- We have been taught that the real risk is losing our investment principal. In fact, the real risk is outliving our purchasing power.Over a 30-year retirement, inflation is the primary culprit, not market volatility.
- Your plan lives and breathes. From changes in the market to changes in tax law or your personal goals, your plan must live and breathe along with your actual life’s experiences and wishes. A one-time plan isn’t worth the paper it’s printed on.
Whether your plan is in your head, in an excel spreadsheet, or managed by a professional, there is no doubt the above four hard truths must be accepted for your money to have a chance at outliving you.
Got a question? Submit it below and I will personally respond.