Sometimes retirement plans do not work out as planned, resulting in retirement mistakes. It is very disappointing, as a specialist retirement planning adviser to see this happen because the work involved in preparing bespoke plans is extensive and often implies an expectation that the original plan will be suitable throughout retirement.
Often, the reason that the plan didn’t work, was my inability to completely understand what shaped the client’s beliefs and philosophy around money and their retirement. Whilst the plan laid out for the client was technically correct, it did not adequately address the clients reaction to different situations that they would face in their transition to retirement.
“It is a retirement planning mistake to not acknowledge how your past and history has influenced your retirement mindset”
We call the retirement mindset, your “Fiscalsophy”.
Understanding your Fiscalosophy will help you to avoid the following retirement mistakes:
You may be risk-averse and have never borrowed to invest. On the other hand, you may be inclined to jump in at the deep end without completely being aware of the consequences and risks of debt in your retirement plan. In either situation, our role is to assist you in managing the risks and help you appreciate the impact on your retirement plan.
There are several ways to accumulate wealth and often the approach we take is influenced by our history, beliefs and experiences. With an understanding of why you react in certain ways, you are able to find a pathway to plan for a financially secure retirement. Without this understanding you could be prone to overconfidence or even under confidence, to save for your retirement.
Our role is to provide you with our wisdom that comes from our education, training and experience to avoid making these retirement mistakes.
At times you may need additional insurance to protect your income or to make sure that your family’s future is secure. How much you insurance you believe you need will be influenced by your beliefs and experiences with life’s ups and downs.
Our role is to understand your beliefs and guide to the optimum level of insurance for you so that your retirement plan is not compromised by either being under or over-insured.
The options for retirement are changing rapidly and your view on retirement will be shaped by many factors. We seek to understand your beliefs and then tailor your retirement plan accordingly, including the flexibility to make changes where necessary. We also provide retirement coaching to help you overcome your fears and concerns and investigate the possibilities and opportunities that you may have.
If being able to give not only money but your time is a core value and belief that you have, your retirement plan should be tailored accordingly. For example, you may prefer to donate money to charities and sacrifice an item on your “bucket list” or work less to be able to give of your time to worthwhile pursuits.
Some of us are good at spending and others are spendthrifts. In my experience, the more people earn, the more they spend.
We gain an understanding of where you fit, based on our research and questions about your history and beliefs. With that knowledge, we can show the impact on your retirement plan and make recommendations to give you the freedom to spend or a budget to keep you in line or work through other choices.
We need to understand what you (and your partner) are comfortable with and how you can sleep at night with the investments you have. If you and your partner have different experiences, we will explore different scenarios, so that your retirement plan’s success is not entirely dependent on each of you.
Everyone will have different thoughts on how much you might spend on your children. For example, you might have attended a private school and it is important to you that your children/grandchildren be given the same opportunity. We help you to see the impact on your retirement planning goals and tailor our retirement planning strategies to suit.
At Longwave Wealth, we make sure we understand you and your partner’s history, influences and beliefs about money and retirement, avoiding these retirement mistakes. Once we have this understanding we are able to align our retirement planning strategies so that you can thrive and not just survive during retirement.
Every person CAN have a happy, healthy and purposeful retirement by understanding how their past has shaped and influenced their beliefs in relation to money and retirement.
If you would like assistance in understanding your Fiscalosophy, please contact us and we will forward you a link to our questionnaire.
How has your past and history shaped your views on money and retirement?
General Advice Warning: Any advice on this site is general advice only and does not take into account the objectives, financial situation or needs of any particular person. It does not represent legal, tax, or personal advice and should not be relied on as such. You should obtain financial advice relevant to your circumstances before making any decisions.