Wed, 22 January 2020
Protecting your retirement lifestyle is an important part of retirement planning. You want to know that if everything falls apart you’ll still be able to live the life you want. Well, unfortunately, nothing is absolutely certain and there is no way to protect yourself against everything. However, proper planning can help give you peace of mind. If you’re wondering what on earth you’ll do in the event of a bear market or market crash, listen to this episode to help you understand how to set yourself up for success in retirement.
Retirement is asymmetrical
The 4% rule looks great on paper, but it really isn’t practical when applied to life. Retirement is lumpy and asymmetrical and returns on investment are asymmetrical as well. There are always going to be unexpected expenses. Sometimes expenses will come in the form of opportunities and sometimes the expenses won’t be as much fun. The only thing that is certain is that life is always uncertain. So it is important to prepare for the unexpected. When planning your retirement, you need to remember that life will get in the way.
It’s all about finding balance
In retirement, you need to find that balance. On one end of the spectrum, you have that near-term market loss and on the other end, you have a loss of purchasing power.
Let’s learn how to keep the tension between the two of them.
The best way to protect your retirement lifestyle
How can you protect your retirement lifestyle? Try using your superpower longer. What is your superpower, you ask. Your human capital. The longer you can continue to bring in income the better off you’ll be. Retirement doesn’t have to be like a light switch. You don’t have to simply turn off the work button. Try pretirement to gain time freedom and flexibility while still maintaining a bit of an income. Pretirement is the best strategy you can use to protect yourself from whatever life throws at you.
How much is enough?
A listener writes in with a question, how will he know when he has enough to retire? This is such an important question and one that we all struggle with, but it’s not only an external question of how much you have in the bank. You need to go through a process to determine the retirement that’s right for you. Here are some steps you can follow to help:
OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN
HOT TOPIC SEGMENT
LISTENER QUESTIONS SEGMENT
TODAY’S SMART SPRINT SEGMENT
Resources Mentioned In This Episode
BOOK - Stillness is the Key by Ryan Holiday
Roger’s YouTube Channel - Roger That
BOOK - Rock Retirement by Roger Whitney
Roger’s Retirement Learning Center