In this blog series, we have been discussing various topics to consider when evaluating or drafting your retirement plan. One of our favorite analogies to use with clients is to compare Surviving Retirement with Climbing Mount Everest.
Not only does this align with our Summit brand, but we believe it is a great illustration to show the depth of planning that is required to ensure a safe and successful journey.
Reaching the Peak: Achieving Retirement as a Major Milestone
Climbing Mount Everest could potentially be one of the most physical accomplishments someone could achieve in their lifetime. Similarly, we believe a successful retirement plan is one of the best financial accomplishments someone could achieve.
First, making it to retirement is similar to climbing a mountain, and both are seen as significant accomplishments. In our experience, making it to retirement is one of the primary goals for our clients when we initially meet with them.
Being able to stop working is a major financial goal, just as reaching the peak of Mt. Everest is what most believe is the main goal. There is a lot of planning, preparation, and then action that is required for both of these goals to be achieved.
You cannot just simply “wing it” and hope that things work out. The best course of action will require a well-developed plan and then sticking to that plan will likely help ensure the highest likelihood of success.
The Descent: Why Retirement Planning Doesn’t Stop at Retirement
However, reaching these goals is only half the journey. This may be surprising, but more climbers have actually died on their descent journey rather than the initial climb.
This is due to potential factors such as exhaustion, weather, or maybe even carelessness since they think they have already survived the hardest parts.
This is a similar thought process we see with retirement. Once someone stops working, we have seen clients become careless with their budget and not prepare for the unexpected surprises that may come with the back half of their journey.
Simply making it to retirement or making it to the mountain peak is one goal, but you must also plan and prepare for the descent journey in order to survive the climb.
Sustaining Retirement: Avoiding Financial Pitfalls on the Way Down
We believe this is a powerful analogy to use with clients because it illustrates the need to continue to plan and monitor their finances after they retire. It does not become a “set it and forget it” strategy, and the plan must continue to be monitored.
You do not want to be one of the climbers who dies on the descent, just as you do not want to run out of money during retirement. Both goals have two sides of the equation that must be thoroughly solved in order for the entire journey to be successful.
This is why it’s essential to not only focus on growing your assets for retirement but also to position your investments for the transition properly. Retirement income planning ensures your portfolio is structured to provide sustainable income and helps you navigate the financial challenges of the descent.
Retirement Lessons from Climbing Everest- Key Lessons
- One of our favorite analogies to use with clients is to compare Surviving Retirement to Climbing Mount Everest.
- First, making it to retirement is similar to climbing a mountain, and both are seen as major accomplishments.
- Next, living through retirement is compared to descending the mountain for a safe return journey.
Speak With a Trusted Advisor
If you have any questions about your investment portfolio, retirement planning, tax strategies, our 401(k) recommendation service, or other general questions, please give our office a call at (586) 226-2100. Please feel free to forward this commentary to a friend, family member, or co-worker. If you have had any changes to your income, job, family, health insurance, risk tolerance, or your overall financial situation, please give us a call so we can discuss it.
We hope you learned something today. If you have any feedback or suggestions, we would love to hear them.
Sincerely,
Zachary A. Bachner, CFP®
with contributions from Robert Wink, Kenneth Wink, James Wink and James Baldwin
Sources: