Any time you fly in a plane, there’s a lot going on as you travel to your destination. How does this relate to your financial plan? We compare the experience of flying to preparing for retirement in today’s episode.
(Click the featured times below to jump forward in the episode)
Have you ever thought about all that happens when you fly from one place to another? Maybe you nap during the time it takes to get from point A to point B, but it doesn’t just happen like magic. The same is true when it comes to retirement–a lot of hard work and planning is involved to get from one life stage to the other.
Having a flight plan is an important part of the journey. There may be some deviations depending on weather or the route may take a fit of an indirect route to make sure there is a backup option to fuel up if needed. Similarly, you need a retirement plan well in advance of your retirement. Five to ten years before you plan to retire is a key time to strategize for what your retirement will look like after years of saving.
Retirement is not just about the money. Leisure feels great when you’re working, but if you don’t know what you’re doing with your time you may start missing work. Especially when one spouse works and the other is retired, it’s important to talk through what your day and routine will consist of in retirement.
On any flight, there’s a chance you will experience turbulence. Similarly, in retirement, you’ll inevitably experience market turbulence. How do you handle that? As you get older, the way you prepare and respond may look a little differently.
Finally, all pilots rely on others to help them get to where they need to go. Whether that’s a co-pilot or air traffic control, the support and clarity from someone else can help follow the flight plan. Likewise, a financial advisor can help with behavior modification to prevent you from doing the wrong things and help you succeed.
Listen to the full episode above or click on the timestamps below and get ready for takeoff!
[2:21] – Flying requires a flight plan ahead of time.
[3:59] – You need to know in advance what your income (and taxes) will look like in retirement.
[6:12] – When you’re thinking about a retirement plan, it also includes what to do with your time.
[7:42] – When you experience turbulence, it can cause you to panic.
[10:11] – You can’t get there alone.
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