Retiring With Mediocre Returns

The Principle:

What happens if we have mediocre returns in the future? Brian shares what you need to do to prepare your financial plan. 

Honest Takes:

You may be enjoying this bull market right now. But how long can it last? What happens if future returns are mediocre? 

Brian tells his clients to expect lower returns in the future and build to their plan accordingly. There’s always the booms, and then there’s the busts. Real estate is booming right now and the stock market continues to do well. Keep in mind though that it won’t last forever. 

Are you living below your means? Or are you banking on big returns? What happens if the market declines for several years in a row? Brian talks about sequence of returns. 

The Fed says higher prices are to be expected as we return to normal. Is this uncharted territory? If you have too much lazy money just sitting in the bank, you need to be thinking about inflation. Inflation is a real problem, and you’ve got to come up with a plan to face it. Running a stress-test on your plan might help you see where you need to adjust your plan. There are things you can do to impact your finances, even when there are plenty of other things outside of your control. 

Listen to the entire episode or skip ahead using the timestamps below. 

[0:12] – How long can a bull market last? 

[2:54] – How much money do you need in retirement income? 

[4:44] – Are we in uncharted territory when it comes to inflation? 

Today’s Truth:

“Do you know if it’s going to be a bull market or a bear market when you retire?”

Brian Bowen

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The Host:

Brian Bowen – Contact