#116 - 6 Mistakes You Need to Avoid in Retirement

Apr 27, 2016

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Are you ready to make the most of the life you have? I’m Roger Whitney and I’m here to help you do exactly that - not just for your retirement years, but for your entire life. On today’s show you’ll have the opportunity to dive into all kinds of good stuff, including my weekly happy lab, hot topics, practical planning tips, and the top 6 mistakes I’ve seen retirees make during their retirement years. You’ll get a lot of great tips from this episode so I hope you take time to listen. Why are you working so hard?

I’m the last person to say that you shouldn’t work hard. Hard work is one of the hallmarks of living a responsible life. But it’s interesting to note that we often get out of balance when it comes to work. We invest too much of our identity and worth in what we do, to the exclusion of more important things. On this week’s Happy Lab I’m going to give you a couple of suggestions about balancing that for the sake of your happiness - both now and in your retirement years. Being “present” is one of the greatest gifts you can give your family.

If you’re going to make the most of your life now and in the future, you need to realize that one of the biggest components of the happy kind of life you want is the quality relationships that you develop over the course of your life. Naturally, that includes your family and the friends you meet along the way. It’s important, for the sake of those relationships, that you learn how to put down your smart phone, disconnect from work, and be present for the people who are closest to you. It’s a decision you have to make and stick to and on today’s episode of The Retirement Answer Man I’m going to give you some thoughts to ponder along that line. Why you need to learn from the mistakes of others - before you retire.

We all make mistakes, and we should be learning from them when we do. But as you near retirement a lot more is riding on you making the right choices simply because you have less time to make up for the mistakes and adjust your course. On this episode I outline the top 6 mistakes that I’ve seen retirees make over the course of my retirement planning career, in hopes that I can give you a heads-up about the pitfalls ahead so that you can adjust your mindset, prepare for what’s coming, and make wise decisions now, before you retire. Should you be maximizing your wealth?

That may sound like a an odd question. Don’t we always want to maximize wealth? Prior to retirement, yes. But once you hit retirement your mindset needs to adjust. Retirement is the time of life that all your wealth maximization effort were aimed toward. It’s the time for you to benefit from all those years. But it’s not an easy transition to make and the adjustment can be more than a little uncomfortable. On this episodes Practical Planning segment I’m going to walk you through this one and help you make some mental notes that will help you enter retirement with the right mindset and approach so that your retirement years can be some of your happiest yet. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

[0:45] Welcome to this episode!

THE HAPPY LAB

[2:31] People about to die often wish they hadn’t worked so hard. Really?

TODAY’S SMART SPRINT SEGMENT

[6:16] The task of being “present” with those you are with (kids, spouse, etc.)

HOT TOPIC SEGMENT

[7:58] Jobless claims and the participation rate are improving.

WHAT DOES THAT MEAN? SEGMENT

[9:42] What are “Fund Flows?”
[11:40] Understanding Fund Flows is important to understand for long term investors.
[15:01] The Fund Flows of U.S. equity strategies over a 5 year period.

PRACTICAL PLANNING SEGMENT

[16:54] Learning from the mistakes of others.
[19:48] Why learning from others’ mistakes during retirement is so important.
[20:14] Don’t neglect your spending plan (budget).
[22:47] Is wealth maximization the right focus for a retiree?
[27:38] Do you really need to support those adult children?
[29:55] Is that big home still necessary?
[32:10] The ostrich is the only one who should have his head in the sand.
[34:34] You’ve got to learn not to run for the exits so quickly.

RESOURCES MENTIONED IN THIS EPISODE

Contact Roger: http://www.rogerwhitney.com/retirementanswers/

Roger’s retirement learning center: www.RogerWhitney.com/lear

The Retirement Answer Man Facebook page: www.Facebook.com/RetirementAnswerMan

Hot Topic link: http://www.marketwatch.com/story/jobless-claims-fall-to-42-year-Low-2016-04-21

What Does That Mean Link: http://www.investopedia.com/terms/f/fund-flow.asp