We all experience distractions in the media, uncertainty in the markets, or pressure to buy and sell from friends, colleagues, and so-called financial gurus. All these factors can directly challenge an investor’s ability to make consistent, rational and logical investment decisions. This barrage of information coupled with inherent behavioral biases can make investing a challenge for most people. How you behave and react to the information available will play an important role in your financial success.
My family, like many other families, is very busy; between children, work and home, there are many chores and activities that must be fulfilled every day. To conquer all these responsibilities, we divide many of them up. We trust each other to ensure that they are responsibly managing their duty. This works well because we have limited time and different skill sets. One of my responsibilities is managing the family finances.
Recently, my wife, Stephanie and I had a conversation revolving around our personal planning. It went something like this:
Stephanie: What happens if you die?
Bob: Don’t worry, everything is in order.
Stephanie: What does that mean?
Bob: We have our estate planning documents, there is more than enough insurance and everything for the business succession has been planned.
Stephanie: What do I need to know or do?
Bob: Ugh, well that is complicated.
When you are planning for retirement you may have all your ducks in a row. Many of the financial obligations of your life have been paid off; home and college. You have a nest egg to pay for living expenses and medical costs, an estate plan to ensure your family is protected when you pass, insurance so you are not a burden to your loved ones in your most elder years. You are free to live the life you desire.
Having a strong plan is critical to living a financially secure retirement, but have you considered and planned for your time when you retire? It can be a crucial yet often overlooked part of the planning process. For those who have not considered what their days, weeks and months will look like, it can make for a strained transition to your next phase of life.