Episode 21: Getting to the Bottom of Your True Retirement Goals

ABOUT THIS EPISODE

On this episode of the Build Your Life Podcast with Financial Expert John Browning, we're discussing your retirement goals and why they're so important.

Learn about setting SMART Goals and why you don't have a second chance to get it right. Listen in to discover why retirement might be more expensive than you think and how Medicare will affect your decisions. Bottom line: Goal setting now helps prevent worry during retirement. 

For more information, visit www.GuardianRockWealth.com to learn more about what John can do for you. Or, give us a call at (312) 372-5000.

Welcome to the building your life podcast with John Browning. Building your life is a relaxed and unedited conversation with financial expert John Browning. John's the founder of Guardian Rock Wealth in Lake Forest, Illinois. He's also the author of the Book Build Your Life, not a portfolio, a guide to your financial future based on your personal values. Now you can purchase John's book on Amazon, or you can stay around to the end of today show and I'll tell you how to get a free copy milk right to your door. I'm Michael Lawn, your host for the next few minutes as we chat with financial expert, business owner and author John Browning. Well, hello, John Browning. How are you today, sir? I'm doing great. And Yourself, you know it. I'm doing chipper. It's a great bay. That's not a word I used very much and I'm not a golfer, but it's kind of fun. I'm always warm it up. It's warm it up there right, because it is warming up there. Yeah, fact, it feels like the tropics because yesterday we got about three inches of rain and today it's probably about ninety and in its very humid. That's why I feel like I'm in Costa Rica, although I'm not, but if and we are turning in June, July and August. You know, I'm in Arkansaslso it's going to be hot and human now for a while, but that's okay. Yeah, I was just talking with you know, we have an office in Colorado. Even in Colorado, we just thought it's just not too far away from Denver, and she told me that it's snowed last night. No Way, yeah, it's like and she had just played a vegetables because she's thought she was safe and it just then didn't work out so well. But so hopefully they make it. Yeah, that veggies don't like that cold. Well, that's crazy, but it's funny mention that. Right. So that's one xtree. My inlaws live in Minneapolis and we got this this rainstorm coming from the golf and it pushed the hot air that we had this weekend up to Minneapolis. They had a ninety three degree day yesterday in Minneapolis, Minneapolis, and I thought that when that happened last right, right, oh, well, that's we're not here...

...to predict the weather or anything, but it is fun once while just to talk about crazy things. Now and one of the crazy things. I want to talk today. It to to you today about, John is setting goals, and I know you know as much about goals as anybody, but you know, I've been around for a long time and goal setting is really important in business and in life and in marriage, and it's also a really important when you talk about retirement planning, and so I want you to unpack for us. So it's a little what you know about goal planning, what people should be doing and what what can somebody do if they don't really know how to go about setting goals for their retirement? Sure I would say that setting goals for retirement is much like setting goals for what you're going to do next month, next year, next decade. Maybe next decade is you when you're going to retire. But it really doesn't differ a lot. But it can be. There's more, there can be more at stake, and this is something that you really don't want to get wrong right, because how many people do you know that get a second chance at retirement? It's not something that we fairly like to like to think about, but there I think I've reference this book before, the Twenty Thou days. It's a great book and it basically puts a number on it. On average, we just get twenty Tho days on average, you know, and of course you can drown in a river that's an average of the two inches deep, right, but some live a lot longer, some live, you know, shorter. But that's part of making those goals as well, because you really don't know in that average where you're going to fall, so you don't want to wait too long and you you also want to make sure that you have assets that live with you all the way, all the way to the end, right. And it's actually in many of the studies that have been done, you know, they...

...always have all these these things that they questionnaires that they put out there, and it's essentially one, two or three in terms of the biggest fear that people have is running out of money in retirement. And you know, I speak with people who have millions of dollars that worry about running out of money and retirement and I speak with of people who have two hundredzero dollar that worry about running out of money and retirement. And the truth is it's very individual. HMM. We do have a particular client that has millions that is worried about that and it's because this individual has very high aspirations about what they want to accomplish in their bucket list, so to speak, during retirement. So they tend to spend more of that money. And yet we also have a gentleman with a very small account. He's part of our clergy program. So if you're in full time Christian Ministry of some sort, we have a special program for you, if you're listening. And and he doesn't have a very big account, but he's not worried at all because he knows how to budget, he knows how he's got he can spend and he's very happy spending as little as he does. So and both he and his wife and they're both on the same page with that. So it's very individualized with with how you set these goals, but it doesn't differ from any other way. The specific, measurable, Achievable, time bound goals, the smart goals idea is the same methodology that we use. The big difference is you really need to spend some time on this because you don't necessarily get that second chance to get it right. So that's that's why we do spend more time on it. A lot of people don't really, really haven't really thought through, and not that they would have, or there's no real reason to accept for this fact that you're going to go through retirement. About how expensive is it in retirement?...

Is it the same as when I'm working? Well, probably not. Might it be more expensive? Well, no, of course it's not more expensive. I'm working, I'm doing this, that and the other thing. A lot of times what people find is that, especially in the first few years of retirement, their expenses actually go up really now. Okay, so that could because that is just countercultural to everything that I've thought John, that my kids are gone, I'm going to downsize my house, I don't have a mortgage. Well, it's going to be good and I'm going to need about a third less to live on. So you get on back that. Well, one of the things to understand, and and I'm we're going to have a guest, because there was a going to be a day that you won't be able to do this with me and I'm I'm working on getting a guest for this podcast. And what he specializes in is as people get the age sixty four, they start getting all kinds of mail and then sixty five, even more male, because it's time to consider and there's a lot of different options. I have set this up. The whole idea of Medicare right and and it's not something that you shouldn't sign up for just ignore. He you need to pay attention to that stuff and how you is signed to move forward right then, when you're sixty four sixty five years old, has a significant impact on how the rest of your retirement is going to go, and he specializes in that. But the whole idea of that when you leave your formal work environment, you're not likely to have health insurance, so you have to provide for your own health insurance in some way, and I will tell you that gets extremely complicated. One of the things that my parents have as one of the banes of there. They hate this right, is like every year trying to figure out what the government has done as far as this whole Yeahson, and the prescription and a and the B and the sea, and it's...

...very complicated, and so that's one expense that actually goes up. The other is, especially in those first few years you're most people are excited retired. There's a bucket list. We want to whatever it is, ghost guydiving, you know, do a ton more go offing, visit every baseball park in the United States, whatever it is. Then there's a lot more travel, there's a lot more entertain and expense. I want to see France, you know, whatever it might be, things that you've been waiting to do. You don't want to not be able to do those because you didn't plan a well, that is great. Those are two really good examples, by the way, the Medica, I had even thought about that. That the insurance, because, yeah, most people have insurance provided for them and wow, Wallah, one day you wake up and you're not, and so that's that's good. The other thing that was thinking that I was thinking about is planning for retirement, and you alluded to this a little bit, but making sure you don't go through your whole retirement worrying about money. That's why you need a plan and set goals now to make sure that when you hit retirement they are in need. The golden ears where you're like, you know what, I've got it. I mean, John's taking care of me and we're good. How does somebody get there? Is that part of that goal setting plan to realize that I'm okay, because I don't want to. I mean, I've worked a long time for this, John. I don't want to worry about it the rest of my life. That's right, I will tell you, and just just from as deep as it can come inside of me. The greatest joy that I have in doing this job every single day is when I get on the phone, and I do have several clients that are this way to get on the phone just to check in, and the first thing they say to me is a we're not worried about it. You got this and this is why we hired you, this is why we work with you, is because we know we're being taken care of and and they we've already gone through exactly what the plan is. Were following the plan. We're adjusting when things require adjusting, but we're not over adjusting, right, we're not...

...overcorrecting and they live their life and every once in a while they call us an you know, like yesterday I got a call from one of our clients that Oh no, I have this unexpected expense and are we okay on this? Yeah, absolutely, because we've planned for the unexpected, and that's how you do this. You don't just plan for the expected stuff that everybody knows is going to happen. You you plan for unexpected things because, guess what, unexpected things happen all the time. That's right, and that doesn't change just because you retired. Yeah, so, and the other thing that you have loaded to and we may take it talk about this tent now or later. But the other aspect is not as you setting, as you're setting your retirement goals, which in retirement maybe a decade away, maybe twenty years away, who knows, making sure that we're not at a place where we're not enjoying life today to save everything for retirement because again, the Twentyzero days, right, I don't know that I'm going to make it to retirement. So I've got there's got to be a balance thereof I'm going to live life today and make sure I'm putting things away so I can live life in retirement. Right, a good balance there. Balance, but you you just said that right, balance, and that's one of my favorite words. It is it is one of my favorite words as well. Balance and consistency. Those two are two of my favorite words. But and then I talked about this in my book. It's kind of the whole premise behind it is build a life, not not a portfolio. And how do you do that? So I hope everybody you know has an opportunity to pick up the book and eat it and if you'd like a copy, you can always just you just go out to the website and contact me on I'm happy to send you a copy because I think it's important and and you I think it'll provide some value to you, whether or not you work with me or not. But where was I...

...going with that? Michael, help me. Yeah, we started with bat we started with balance and goal setting and not not saving so much for retirement that I don't get to live my life today, that I need to live today and say for retirement. So there is a balance there and it it's unit. You know I both love the word balance. So I'm going to give you my my quote that I learned somewhere that we find balance in life by losing it, and I always go back to teaching a child how to ride a bike. If you've ever done that, you're running by them and there you know, they're wobbling all over the place. Will Pretty soon they get it and they find balance. Right. Same things, goal setting, and planning for retirement. I may be saving too much money or spending too much money today, not saving for retirement. I'm out of balance. I've got to I've got to swing it, but I can't swing that pendulum too far or I'm out of balance saving too much for the future, not enough for that. So there's a balancing act and it is it's part of goal setting and anybody who does goal saying, I'm sure you do this with your clients, John As, you set goals and then you seal them up and you put them in a safe and you never look at them again. Right. That is not correct. We look at them regularly and we find out are are we? Are we headed in the right direction? To a countless shows, are we not? Are they still the goals that you want to have? Because this things happen in life. Your goals can change, your goals can change, and that's okay because that's part of maintaining balance. And when things, when you get that call that person said Hey, something, something happened, I need more money, she felt like she was out of balance and he said, Nope, we're right, we're right where we need to be, and so that that's great. That's part of goal setting and I think goal setting is very intimidating for most people. They make it a lot more than it really is. It's having a conversation with somebody like John, getting at letting him ask you all those questions and write some things down and say, okay, here's what I heard you say, and making some goals and say, okay, if that's where you want to be, here's a plan to get you there. I mean it sounds very simplestic. I know there's a lot more that goes into it, but at the end of the day that's kind of the the basics of ourn isn't it? That's that's...

...exactly right, and you know I have. I have great respect, by the way, for for the for the wonderful folks out there that help people with budgeting and you know they say, you know, don't don't buy your starbucks because that's too expensive, don't buy this, don't buy that, don't spend your myth. Great respect for those folks. Where the balance comes in is if that really truly brings you joy, if that is super important, you to buy that Cup of starbucks. It's not for me right. I like one of every once in a while, because I'm a big coffee guy, but spending five six bucks on a cup of coffee seems insane to me. But I'll do it every once in a while. But I know people that it really bring some joy. So you know what, do it save money somewhere else, but enjoy your life the way you want to enjoy it. You know, my my weakness is in anything with the motor right, like I'll go out buy a Harley David's motorcycle that's a Li little more expensive than a starbucks cup of coffee, and people think I'm insane. You know, they really can't ride there when it's cold. He can't write it in the rain. I'm like, yeah, you can write it in her and then you can write it when it's cold. Like can yeah, if you're a die hard like me, yes, you can, if you do, that's right. Or even Arkansas, and you right, it almost all year round, almost all year round. Or in Hawaii. Right. That's been shipping it to Hahwi. They probably have Harley shops over in Hawaii. Hawaii do, don't they? Do they have a Nice Harley shop? Yes, it's been there at some point. Yeah, that's awesome. Oh, John, thank you for helping US understand goal setting and balance and and they really the importance of putting goals in place and reviewing them on a regular basis with your financial advisor so that you can get into retirement and realize that in retirement sometimes it can be more expensive because there are some costs that are going to go up and that's why you have to plan for them now. And that's really what goal settings on about, just setting a plan, bringing the future...

...into the present and having some kind of a plan to say, here's where we're on track and we you and that on a regular basis. That's that's really what you're talking about. And if you don't like goal setting, just talk to John, because he likes it and he can help you. It's fun, but I love it. Well, it's fun when it's really fun, when you set the goal and then you review it or your later and go why, look at all the progress we've made, look at where we're heady. That's where the motivation really comes in for people and and helps them go out and celebrate with that starbucks or that Harley Davidson. So it's sure. Well, I appreciate it, John Ye, I want to encourage people to get a copy of your book build a life, because that's what we've been talking about. If you set goals. Goals are not restricting, they're really freeing. They let you know that you it's okay, go get that starbucks if that's what if that's what your joy is, we're going to build that into the system. So get a copy of John's book. You can get it an Amazon, you can go to his website, Guardian rockwealthcom, and just request a copy from John and read it, and it really is they will find great value in because there's just a lot of great stuff in there. And reach out to John Because he's fun to talk to. He's got a lot of interest. And we'll have to talk some time about skydiving, John, because I've done that and that's that's a blast. So that's on my all right, still on my bucket list because I love to do it. So anyway, awesome. All Right, thanks, buddy, thanks for a great, great interview and we will talk to you again soon. All right, thanks a lot. We'll see you soon. So thanks for listening to the building your life podcast was John Browning. Be Sure to subscribe to this podcast so each new episode will be sent to you automatically when it is released. Have A terriffic day.

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