Common Sense Financial Podcast The Three Retirement Mindsets That Could Have A Negative Impact On Your Retirement Plans - Replay
In this episode, Brian Skrobonja goes over the three main retirement mindsets that could negatively impact your retirement plans.
He sheds light on what most retirees get wrong about retirement planning, why being confident doesn't eliminate investment risks, and what to consider when hiring a financial planner.
- Brian goes over three retirement mindsets that have the potential to derail even the best-laid retirement plans.
- He starts by explaining that there is more to the conversation around retirement than just having a permanent vacation.
- Retirement is not a destination; it's a transition into a new stage of life.
- The different mindsets you need when saving money and growing a nest egg versus spending and withdrawing money from your retirement accounts.
- Mindset #1 - The Idea That Annuities Are Bad.
- For Brian, retirement is about having a steady stream of income you can rely on no matter what Wall Street throws your way.
- Brian reveals that most retirees want consistency and predictability in retirement--they want to know exactly how much money they have coming in each month.
- Annuities are designed specifically to deliver this predictability and remove guesswork out of producing income for retirement.
- Remember, stock market risks are real and they don't disappear just because an investor is optimistic about what could potentially happen.
- Mindset #2 - The idea of the status quo of the stock market in retirement.
- Some people believe that a well-diversified portfolio will predictably turn out enough profit to sustain them throughout retirement.
- According to Brian, what is missing from this ideology is that the market doesn't go up in a straight line. If you experience a 50% loss, 50% in earnings will not get you back to even; you need 100%. And if you're making withdrawals, that only compounds the problem.
- Brian reveals why the stock market is a great tool for wealth creation--but only if you allow the money to grow and aren't making withdrawals for income purposes.
- Mindset #3 - Fee anchoring.
- What is a fee anchor? It's the amount someone has in their mind for what they should pay for financial related advice.
- When considering a fee for an advisor, it's important to understand that it's less about the fee and more about what you're getting in return.
- A fee is only an issue when there is a vacuum of value.
- For Brian, if you try to get an advisor to cut their fees, the more experienced and valued advisors will not take you as a client.
- Brian explains why finding the right advisor can be invaluable, especially when it comes to navigating complex financial products like annuities, private markets, or selling a business.
- Fees are important and you should understand them, but Brian encourages people to not use them as the primary consideration for making a decision.
Mentioned in this episode:
Common Sense Financial Podcast on YouTube
Common Sense Financial Podcast on Spotify
Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.
Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.
The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. The views and opinions expressed here are those of the authors and do not necessarily reflect the official policy or position of Madison Avenue Securities, LLC
This material contains forward looking statements. Forward looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Actual future results and trends may differ materially from what is forecast.
Investing involves risk including the potential loss of principal. Consider your risk tolerance and specific situation before investing.
Investments in securities are subject to investment risk, including possible loss of principal. Prices of securities may fluctuate from time to time and may even become valueless. Carefully read all of the relevant investment product's offering documents and information before investing. Seriously consider investment suitability by referencing your financial position, investment objectives, and risks profile before making any investment decision.
Annuity guarantees rely on financial strength and claims-paying ability of issuing insurance company. Annuities are insurance products that may be subject to fees, surrender charges and holding periods which vary by carrier. Annuities are not FDIC insured.