What’s the #1 Risk to Retirement?
What’s the Primary Risk to a Secure Retirement?
Retirement comes with countless risks to confront. Here’s a shortlist:
- Inflation Risk
- Market Risk
- Behavioral Risk
- Longevity Risk
- Long-Term Care Risk
- Underspending Risk
- Not achieving other meaningful goals
- etc.
Yet, there is one overarching retirement risk that sums up all of the above:
“Failure to create a competent and professionally designed financial plan is THE core risk to a successful retirement.”
Everything is Connected in Retirement
Every part of your financial life is interconnected with every other part of your financial life. For example, your tax plan affects your cash flow plan which affects your asset allocation plan which affects your estate plan.
You need a financial plan that speaks to not only every aspect of your financial life but also honors the interconnectedness of all retirement decisions.
This is extremely difficult to do on your own. Even if you are financially literate, blind spots still pop up when we are talking about our own financial decisions. In fact, experienced financial planning professionals should also likely hire an outside financial planner to help them with their financial planning!
Where Can I Get a Financial Plan?
Where can you get a professionally created retirement plan? Well, if you are within 5–10 years of retirement and you believe you would benefit from a customized and comprehensive retirement plan, we would love to chat:
Click here to read more about our 3 Steps to Embark Financial Plan engagement.
That said, there are plenty of other great financial planners out there, especially if you have unique complexities. For example, if you are a young business owner or a recipient of stock-based compensation there are financial planners who specialize in matters such as this.
For example, we suggest searching the following sites for fee-only financial planners:
- National Association of Personal Financial Advisors (NAPFA)
- XY Planning Network
- Garrett Planning Network
- Fee-Only Network
Interested in creating a custom retirement plan to ensure you enjoy a tax-efficient, secure, and joyous retirement? Schedule a free introductory call with a Trailhead Planners Certified Financial Planner® professional below!
“Failure to plan is planning to fail.”
— Benjamin Franklin