Today’s Puzzle:

We often find that people are clinging to certain ideas or beliefs that end up giving them a sense of false hope about their retirement. It’s a dangerous position to be in. Let’s explore some of the faulty thinking that ultimately leaves people underprepared for retirement.

(Click the featured times below to jump forward in the episode)

The Solution:

If you were to rate your retirement readiness, what kind of grade would you give yourself? Hopefully you feel pretty confident about where you stand financially, but are you basing your evaluation off the correct benchmarks?

That’s the question we want to explore on this episode of Solving the Financial Puzzle. Too often people get misguided by false indicators of success and start to believe they’re ready for retirement when they actually aren’t. That can create a lot of problems once you’ve stopped working, and that’s not a position you want to be in.

We end up with the wrong information for a variety of reasons. Maybe you’ve heard someone say that reaching a certain number means you’ll have enough money for retirement. Using a general projection might work for some but there’s no guarantees it’ll fit your needs.

Or maybe you’ve made some assumptions about retirement. Without taking the time to set up retirement plans, how will you know exactly how much money you need? Just because you aren’t working doesn’t mean your income needs will actually drop.

Other times we’ve talked to people that have relied on projections from their retirement accounts or an online calculator. These are generated off expected returns and assumes certain income needs. So while they can give you some sort of expectation, that’s not going to be the most accurate way to plan.

The last reason people grab this false sense of retirement readiness is that they are comfortable ‘winging it.’ Not having a plan doesn’t bother this person because they feel confident in their ability to figure things out when the times come. Would you rather rely on hope or a plan?

Nikki Earley will provide a thorough breakdown of each of these ideas and beliefs. We hope by the end of the show you’ll see why this could leave you on shaky ground in retirement.

Listen to the full episode or click on the timestamps below to find out if you’re clinging to a false sense of hope.

[0:56] How’s life in Ohio right now?

[2:48] – What we’re talking about today.

[3:36] – The mindset that you’ll be ready to retire when you hit a certain number.

[8:15] – Belief that your income needs are going to decrease when you retire. 

[10:40] – Assuming that an inheritance will make up for any shortfalls in retirement.

[13:27] – You’re going to ‘just figure it out’ in retirement.   

[14:23] – Assuming that the income estimate on our 401k statement is accurate. 

[16:53] – Take us through the Money & Clarity for crafting a plan.

The Full Picture:

Free Stuff:

Click the image to get a free retirement rescue toolkit.

Additional Resources:

The host: Nikki Earley – Schedule A Time To Meet – Or Call: (513) 563 – 7526

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