5 Common Traits of Good Retirement Planning

There is a helpful framework being leveraged today of “what does good look like?” This works across many areas of our lives, and retirement planning is no exception. Leveraging one of our favorite thinkers in the space, let’s explore CPA Kurt Supe’s thoughts on what good retirement planning looks like.

“After almost 30 years of building retirement plans, the people who pull it off have 5 things in common. Not 1 of them is picking better investments.” Wealth managers and low cost index funds and dollar cost averaging time will tend to figure out the last part. So what does good look like according to the post?

1. They know what they spend - Not what they believe, but what the actual data shows
2. They have money in more than 1 tax bucket - Pre-tax, Roth, and taxable matters because the same amount from various sources matters
3. They use the window - The time between final paycheck and RMDs (Required Monthly Distributions) is critical
4. They plan for the second half, not just the first - Long-term care expenses and outliving a spouse need to be accounted for
5. They stay flexible, and they check - Life happens and planning is a process, not a one-and-done-event

Of course the investment allocation and decisions matter. Forward Inheritance is proud to partner with many wealth managers, they provide a valuable service to families. But what I like most about these commonalities is that they are about the process, not the individual stock or trend or amount. Anyone can do this, and everyone should do these things.

Knowing our actual budget is critical not only to understand what we can invest, but also how we can afford to live longer and retire. Having optionality in where we can pull funds from gives us flexibility. Being clear eyed about the future, about who lives where, and how well, and for how long, is required to ensure the plan can meet our goals. And continuing to care and feed the planning process is not just prudent, but an act of love for us and our families.

These commonalities don’t take money. They take organization, accountability, and discipline. They are part and parcel to running the Business of the Family like a business. We can do this. We can help ourselves and our families move forward…