Finding the Leaks in Your Financial Plan

The Principle:

Is your financial plan robust and thorough? Or is it full of leaks and problems that you don’t even know about? Brian talks about benchmarks for retirement, and what makes a plan a good one.

Honest Takes:

What’s worse than a leaky roof? Probably a leaky roof that you don’t know about that’s causing all sorts of damage that you don’t even know about. What happens if there’s a leak in your retirement plan? That’s not something you want to find out about after it’s too late!

Some financial service companies have come up with benchmark numbers to tell us if our saving amounts are on track to give us a successful retirement. Are these numbers accurate? Or should we be doing something else to find out if we’re on track?

One benchmark is having six times your annual paycheck in retirement by age 50. But variables like a pension or inheritance can’t be added into that benchmark. As you get closer to retirement, especially after the kids are out of the house, you need to be saving aggressively. In your 50s, you’re in the retirement red zone and have to save more. You also need to know what your budget is. Do you know how much you’re spending? 

Just like when you build a house, you’ll want to get professional advice and help to find the right solutions. You’d get second opinions and specialty help along the way. Likewise, your financial plan is something you’re building for years. What are the goals and dreams you have for it?

Don’t be afraid to ask questions and meet a financial advisor. They are there to help you. Find an advisor who helps you put together a comprehensive plan that not only includes investments, but one that helps you accomplish your goals.

[0:13] – Are your savings on track for retirement?

[3:13] – Know what your budget is.

[4:15] – A financial plan is like building a house.

[7:11] – Get a second opinion.

Today’s Truth:

“What are the goals and dreams you want to accomplish?”

Brian Bowen


The Host:

Brian Bowen – Contact