The Most Often Overlooked Step In Retirement Planning

When it comes to retirement planning, conversations often center around portfolio management and investment strategies—what I like to call the bling of the financial world. Generally, you sit down with an advisor and begin your work together by listing all your assets and expenses. They, in turn, provide you with a thick report of projected returns, inflation assumptions, and a—likely daunting—required savings number for your retirement nest egg. More often than not, they then offer a fancy investment product or strategy to push you towards attaining that staggering sum.

Starting a retirement (or any financial plan) with investment tactics is a little bit like going grocery shopping when you’re hungry. Driven by your grumbling belly, you start popping Cheetos and Little Debbie snack cakes into the cart without rhyme or reason because they look tasty or have appealing packaging; once you get home, you realize your pantry is overflowing, but you don’t have the right ingredients to make an actual meal, much less something healthy. Darn.