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Blog | The Portfolio Doctor

The Portfolio Doctor

My blog provides valuable insights into Nobel Prize-winning financial strategies for investors. By utilizing decades of worldwide peer-reviewed capital markets research and analysis, I demonstrate how to build better investment portfolios with lower risks. I also examine common financial media misinformation and how investors can make better financial decisions.

Peace of Mind in Retirement Planning

Planning for retirement is a source of anxiety for many people. From the intricacies of the planning process to concerns about results, this time can be fraught with uncertainty. While many parts need to come together to make a cohesive and sustainable plan, the biggest fear most face is the fear of making mistakes.

Mistakes in a retirement plan can be costly in both time and money. While the monetary cost is the most easily visible, the cost in time – if retirement is close and there is scant time to make up lost ground – can also cause a fair amount of unease.

Although there is no absolute guarantee for a perfect, mistake free retirement plan, these mistakes – and their unintended consequences – can be minimized and managed--and, hopefully, bring about peace-of-mind during the retirement planning process. Here are some ideas for increasing inner harmony on the road to sound retirement planning.

Empower yourself

An effective method of reducing your financial angst is to get organized. It’s fairly common to have a myriad of retirement accounts with objectives that overlap (IRAs, 401(k)s, insurance policies, banking and other investments). Since most people are simply too busy working and saving to keep all of these accounts organized effectively, empowering yourself through organization can help you feel more assured.

Getting organized also means better managed and more effective investments. If needed, each account is given a specific identity with unique goals and purposes. The insight acquired through this inventorying and consolidation can help identify the best path for reaching financial goals and achieving peace of mind. No financial plan is without limits, but some strategic wealth planning can help you maximize your potential and keep your mind on the things that truly matter: your life, your family and your future.

Think with Your Head, Follow Your Heart

People often think of retirement solely in financial terms. While financial stability is certainly important, the big question to ponder is, “what do I want my retirement to look like?”. Starting from this perspective is helpful in getting expectations aligned with a realistic assessment of investments and how that will help clients achieve the life they want to lead in retirement.

Retirement is a time to reevaluate one’s life achievements. Looking back on a lifetime of work and accomplishments often helps map out the path one takes in their retirement. Reflecting on what you truly loved doing during your working years is sometimes a great barometer for what you may choose to follow in a different capacity during your retirement. Some find themselves wanting to volunteer and give something back to their community or profession.

It is also often a time of renewed interest in hobbies and passions we may have forgotten about during all those years of working, saving and investing. Some retire and find themselves wanting to volunteer and give something back to their community or profession. A key component in decreasing anxiety is leading a life of purpose in retirement. Finding your niche in your well-earned retired life will help you and your retirement planner work towards reaching your heartfelt retirement goals.

Speak Your Mind

For us to help you navigate the planning process, honesty about your expectations is key. Financial security depends on starting with compatible expectations-- and honest disclosure is key to getting both on the same page. People often set retirement expectations for themselves simply because that’s what they see everyone else doing. Determining what is attainable for you and what will bring you genuine happiness in retirement is an essential element in the planning process.

Honest self-reflection about what you really want to do and what you feel you should do will help decrease apprehension and help you feel more hopeful about your retirement plans. It is easy to get caught up in what others are posting on social media about their own experiences in retirement. It’s also easy to feel that doing what you see others doing is your only option in your own well-deserved retirement. Ask questions when they arise and be an active participant in the choices you make about this life transition. Being part of the process and being honest will help you follow your heart in retirement.

Partner with a Skilled and Trusted Financial Advisor

We help people create a vision for their lives and facilitate the process of implementing that vision. And it is our goal to help our clients have confidence in the choices they are making about their future. Having trust in your financial advisor to help you resolve challenging issues and help you come to informed decisions about your financial goals and investments is comforting through any life transition. Preparing for retirement can bring up a range of feelings and there is a tremendous value in knowing that you have a fiduciary acting in your best interest can ease feelings of uncertainty.

Don’t Let Your Fears Hold You Back

Concerns and trepidation over the future can often turn into “anxiety traps” for many. Once ensnared in them, it can be difficult to detach yourself and take a step back. Fears about making mistakes often hold many talented people back from achieving their hopes, dreams, and goals. Success and self-improvement are within reach if unfounded fears don’t derail them. Feeling optimistic about your financial future is paramount to achieving financial well-being. And that doesn’t just mean the amount you have invested or saved. That means that you have a positive emotional relationship with your financial goals and the plans to achieve them. Feeling confident about your retirement is the ultimate peace of mind for any investor.

There is no guarantee investment strategies will be successful. Diversification does not eliminate the risk of market loss. All expressions of opinion are subject to change. This article is distributed for informational purposes, and it is not to be construed as an offer, solicitation, recommendation, or endorsement of any particular security, products, or services. Dimensional Fund Advisors LP is an investment advisor registered with the Securities and Exchange Commission registered with the Securities and Exchange Commission.

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