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A Financial Plan Shouldn’t Box You In

Updated: Apr 23

A common myth is when you retire you can access your retirement plan balance whenever you want. Many plans do not allow you to take out random, unscheduled withdrawals. Two options exist. Either withdraw certain bulk amounts at prescribed intervals or increase your regular withdrawal. Bottom line without proper planning this can throw a monkey wrench into your plans.

After a lifetime of saving, spending your nest egg can feel counterintuitive. Plus, you have to figure out how to navigate the myriad of regulations and restrictions, which can be overwhelming. Then you have to somehow make it all for you against the backdrop of your needs.

Fear Of Lack of Flexibility or Making A Mistake

After a lifetime of saving money, the last thing we want to do is make a mistake. Or do something that puts us into a box or loses flexibility. That would be a nightmare because then we are not able to do the things we want. Or worse yet, outlive our nest egg.

In our experience, there are a few nagging questions that keep our clients up at night. "Am I doing the right thing spending this money? Is this the right decision?"

There's no question making mistakes with our nest egg can interrupt or derail our plans. So we default to take the least possible risk and not make any decisions at all.

The problem is choosing to do nothing is actually a decision not to commit. A decision to maintain the status quo does not mitigate risk. It could make it more expensive because you lose the time value of your money invested and managed.

A well-thought-out financial plan takes all this into account. It looks into your lifestyle and major expenditures. Otherwise, you could be on the outside looking in. Not being able to access your funds.

Planning Creates Opportunities and Flexibility

There's no such thing as a perfect "plan" because the moment you commit to one, things change. A financial plan must be flexible because life is always changing. Many life events could cause us to change our life direction. When we change point of view, we also need to change our financial plan. It takes time to contemplate, discuss and explore options. A sound financial plan looks at different scenarios. It is always good to have perspective. To be able to see your retirement from a big picture and detailed view. This is the advantage of working with a third-party.

Together, you develop a financial plan and "think of loud" to explore ideas and see the impact of different financial decisions.

Unless you are a spreadsheet guru, it will be pretty difficult to replicate this on your own. Doing it yourself, you don’t have the feedback from an independent third-party. You miss out on the observations, training and knowledge. An experienced advisor fills the gap between investments, taxation and cash flow management. Investigate the services of a fee for service, Registered Investment Advisory (RIA) firm.

Breathe a Sigh of Relief

Working with financial professionals allows you to ask questions. You can tap into their depth of experience and get quality information. Their information and services provide a unique opportunity to shape your future.

A Registered Investment Advisory (RIA) firm has a duty to always act in your best interest. It is their fiduciary responsibility. RIA’s who use the fee-for-service model, means that their interests are aligned with yours. When you win, they win.

Halter Ferguson Financial is one of these Registered Investment Advisory (RIA) firms. Inquire today, the initial consultation is free and gives you a chance to try us on for size.

If you have questions or comments about this article, please call us at 1-317-875-0202 or message us with our contact us form.

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