Most really savvy financial planners today know they have to get their clients to decide what to do during retirement. As regular “non-financial” pro’s (accumulators), we are overly focused on the gathering, the collecting, the accumulation of wealth. We fret over ten basis points on a CD or over the exact allocation of stocks, bonds, Treasuries, REITs, or whatever.
That isn’t what’s important. That stuff is the “how.” What’s always more important than the “how” is the “why.”
Financial planners will start off a session asking people what age they hope to retire, how much they have available to invest today, how much they plan to set aside on a periodic basis and, finally, what they plan to do during retirement. The answer to that last question determines the course of action for the first three.
“Of course,” you say, “that makes sense. If I plan to live like a king in retirement, I’ll have to have the funds to back that lifestyle. No kidding!”
