Welcome back to the third post in our ongoing series called: The 10 Beliefs. To start at the beginning, you can catch a short introduction here, Mistake #1 here, and Mistake #2 here.
This series will help you prepare for your future retirement by showing you the most common money mistakes people make. In our experience, there are seven mistakes that are made far too often. Armed with this knowledge, you can identify and correct these mistakes. the seven most common money mistakes and so you can identify them.
But more importantly, we'll show you the ten things we believe should be doing so you can stop worrying about money, gain confidence and financial freedom, secure your lifestyle and retire happy with dignity and grace.
Mistake #3 – Accepting One-Size-Fits-All Planning
Have you ever bought a one-size-fits-all piece of clothing? Unless you’re talking socks, one-size-fits-all clothing usually means it doesn’t fit. Can you imagine if pants only came in one size?
Retirement planning isn’t a one-size-fits-all world, though many people treat it that way. In fact, we’d go one step further and say that planning for your retirement should be custom-tailored like a good suit, not off the rack.
For many, when the date they retire is arbitrary. They pick a retirement age based on when they can collect Social Security. Or when people they know retired. They know they must make this big decision and don’t know what the right answer is… They might not even know there is a right answer… They’re just following along with the program. They’re navigating their future without a map and risking their dream retirement.
Except, there is no program. This isn’t a one-size-fits all world and retiring at an arbitrarily chosen time is a good way to run out of money or be forced to make painful lifestyle cuts to avoid going broke.
But you don’t have to make these important decisions arbitrarily. It is possible to make a fact-based decision. You can see exactly where you are, where you’re going, and how you will get there even if you know nothing about personal finance.
When you retire should be based on your Financial Framework and Custom Financial Blueprint—the where you are in your financial journey, and the financial plan that outlines how you’re going to get to your retirement goal. Once you have those, you can have real confidence you won’t have to sacrifice your dignity or run out of money. Then you can stop worrying about money and feel secure.
Next up, we're going to talk about that advice you got from someone not qualified to give it. Unfortunately in a world filled with advice, too many people make the mistake of listening to the wrong one. You can catch that post here: Mistake#4 - Following The Wrong Advice.
You can also grab all of the mistakes and beliefs in a free download. Grab it here.