Retirement Answer Man

Think Smart, Retire Smarter: The Map vs The Territory

Oct 16, 2024

Dr. Daniel Crosby, Chief Behavioral Officer at Orion Advisor Services and author of "The Soul of Wealth," dives into the intriguing idea of 'The Map vs. The Territory' in retirement planning. He emphasizes using mental models to enhance decision-making and adapt to life's unpredictability. Crosby advocates for a holistic view of wealth that incorporates personal values and soulful wealth, beyond mere numbers. He also highlights the importance of regular feedback loops in financial planning and the psychological aspects of pursuing fulfillment in retirement.

50:30

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Episode guests

Daniel Crosby

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Quick takeaways

Understanding the distinction between the map and the territory is essential in retirement planning to encourage flexibility and adaptability.

Dr. Crosby's concept of 'soulful wealth' emphasizes the importance of aligning personal values with financial goals for a fulfilling retirement.

Deep dives

Understanding the Map vs. the Territory

A pivotal concept discussed is the difference between a map and the territory it represents in the context of retirement planning. A map serves as a simplified model of reality that aids in decision-making but can mislead if treated as the actual reality. This analogy is illustrated through an off-road driving experience where reliance on a GPS led to unexpected challenges due to the discrepancies between the mapped route and the actual terrain. Understanding this distinction helps individuals recognize the importance of adaptability and reevaluation of their retirement plans, emphasizing that the map is merely an abstraction and not a substitute for real-life experiences.

Intro

2min

Charting the Path: Understanding Maps vs. Reality

3min

Navigating Retirement: Maps vs. Territory

18min

Understanding the PERMA Model for a Fulfilling Retirement

4min

The Three B's of Purpose

7min

Redefining Retirement: Confidence and Purpose

14min

Enhancing Retirement Plans Through Structured Reviews

3min

Join us in this insightful episode as we explore the concept of 'The Map vs. The Territory' in retirement planning. Discover how mental models can enhance decision-making and lead to a more fulfilling retirement. Our special guest, Dr. Daniel Crosby, discusses his latest book, "The Soul of Wealth," offering profound insights into achieving soulful wealth beyond mere numbers. Learn how to balance maps and reality, and the importance of feedback loops in financial planning. Plus, get practical advice on adapting to the unpredictable nature of life and finances. Don't miss this engaging conversation on rocking retirement with agility and purpose!

PRACTICAL PLANNING SEGMENT

(00:30) Talking about the map versus the territory and how it applies to retirement

(2:00) Personal anecdote about GPS maps

(4:00) Maps are a good abstraction to help us navigate things but understand maps are not reality

(5:15) Practical example using map versus territory

(07:25) Maps can be very useful in retirement planning, but they can also have limitations

(9:00) If we view map as reality, it’s easy to create static rules and can reduce our ability to adapt

(10:00) In the context of retirement planning, the map is the plan and comes with a lot of limitations.

(12:31) There are multiple ways to deal with variability of inflation

INTERVIEW WITH AUTHOR DR. DANIEL CROSBY

(16:22) Dr. Daniel Crosby is the author of the newly released book The Soul of Wealth

(18:25) Use a phrase called soulful wealth to describe what makes life rich

(20:00) Retirement is not a spreadsheet

(22:48) Martin Seligman is the father of positive psychology and the PERMA Model

(29:37) You have to get very specific in what it means to have meaning in life

(31:00) The Three B’s of having purpose in life- Believing, Belonging, Becoming

(35:26) What is it, especially around retirement, that creates this crisis of confidence with people?

(39:25) Identify when you are lying to yourself and it becomes harder to be complacent

(40:45) Have a purpose for your money

(44:55) One of the most fulfilling ways to spend money is giving it away

SMART SPRINT

(48:32) In the next seven days, evaluate whatever retirement plan you have in place and identify specifically what is the feedback loop to improve that plan.

RESOURCES

Dr. Daniel Crosby
https://www.danielcrosby.com

The Soul of Wealth
https://www.amazon.com/Soul-Wealth-reflections-money-meaning/dp/1804090441

Six Shot Saturday
https://sixshotsaturday.com

Orion Advisor Services
https://www.orion.com

Martin Seligman
https://www.authentichappiness.sas.upenn.edu