Episode 4: Why is it so Important to Plan for Retirement Now?

ABOUT THIS EPISODE

Welcome to the Build Your Life Podcast with Financial Expert John Browning.

Why can't you just "wing it" and hope for the best when it comes to retirement planning? On this episode, John discusses how much it really costs you to delay planning. Join in for all the details.

For more information, visit www.GuardianRockWealth.com to learn more about what John can do for you.

 

Welcome to the building your life podcast with John Browning. Building your life is a relaxed and unedited conversation with financial expert John Brownie. 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 to lawn, your host for the next few minutes as we chat with financial expert, business owner and author John Brownie. Well, Hey, John, you're doing all right today. You good, good? Yeah, glad they hear it. We're back for another episode and look forward to getting some more information out of you and into our brains. And today we are wanting to talk about why it's important to know what you really want from retirement, and on...

...the last episode we talked a little bit about knowing your why and why you ask that question. So let me let's just kick it off to you know what. Why is knowing what you really want in retirement important? Can't you just wing it and figured it out along the way. Well, I think that's we're a lot of people go with it. Unfortunately, probably the majority of people kind of go that direction, and I think the reason is because we all like easy and free right. That's that. That's the Siren Song of what it is and it you know, even though it's really not all that hard once you gets started, people look at it as this great big mountain and they tend not to plan. But the problem is that if you don't plan for things as then as things happen, it's really too late to be able to make enough of a difference to be able to adjust to either what you want or what is happening in your life right now. And that's why it's important to to plan before things things begin to happen. And there's...

...actually some great financial calculators out there all sorts of places on the web, but you can certainly find one at Guardian Rock wealthcom. There's a whole section of calculators and there's everything from whether you should buy a car or Lisa car to how much it costs to wait to start planning for your financial future. That's actually one of the calculators that's very cool. I'm not. I'm don't know if I've ever seen a calculated like that before. Explain, explain that one just a bit. Well, it's goes back to the idea that the eighth wonder of the world is compound interest. Right, so, even don't assume like a really huge return or a bigger, bigger return like you might expect to see something risk here in the stock market, even if you just consider the idea of compounding interest over a period of years, what does that look like? So if you never started, you're you're not going to have...

...that compound interest. And as Einstein said, that eighth wonder of the world is the idea of compounded interest, and that's really what that calculator does. It's actually fairly simple, but it really opens your eyes when you see how much it costs you to wait. Right. Well, how appropriate. My eldest son is currently twenty four. Just recently he's married, is youth pastor and we're in discussions right now about that very topic because I've read and heard and in found different things over the years. Of It's and I'll get the numbers wrong, but it's something like if you put two thousand dollars a year away for eight years and you never do anything else, you know, and leave it there for what, forty or fifty years or something, you end up with a half a million dollars. But if you wait and start investing on your eight and do it every year for twenty or thirty years, you end up with the last or something like that. And that has always stuck with me, is that that's the type of calculator you're talking about. Something like that. That's that's exactly right, and you know that's just that's that's one of the reasons. Right, that your plan. You know, another...

...reason is, think about this. If you if you just started building a house, right, you just without planning anything about you kind of know what you want to shape it. Pray. It seems ridiculous. Ray that we started. Yeah, easy idea, right, but yeah, that's how many people treat their financial planning and I think that that's because it's not a it seems intangible, although it becomes very real when you get close to retirement. When you're younger, it seems very intangible. And the thing about that if you started building the House and then decided about halfway through, Oh you know what, I really need to have a basement. Well, now you have a problem, right, right, so in and that's the heat. That's another one of those reasons why it's important to plan and really think deeply and through your goals and again, why you have those goals. Yeah, now, that's that's really good, because starting earlier. And the other thing you know, as you as I think about you, Jill and I've been married thirty years and we are looking at our son now, who's married and lives...

...in California on a past or salary. Were like, how are they ever going to start saving for college or retirement? And part of what we're talking about doing is how can jill and I gift them some money or or help them to start, because I know, even if it's a thousand dollars a year, how could we do something to help them get started and get that ball rolling and realize that even if it's five hundred dollars a year, it's something. Right, that's that's right, and actually that's interesting that you bring that up. I just had a conversation with the client the other day and that was one of the things that we discussed, is how can she help her children without helping too much. She certainly has means to help them. She could just pay for everything. She's done really well. She's planned well. She's now retired and she sees her children struggling, like we all do when we're young, right, and sometimes for an world there, but she's seeing that and she says, you know, I really like to help them, but I don't want to help him too much because they need to go...

...through the struggle and learn, and I really have a lot of respect for that. So we talked about the different ways that she could gift things to them, gift money monetarily without helping too much, and and they're there. There's a myriad of different ways that you can do it, depending on your unique situation. Right, I went through that. Well, that's cool. I want you know, I used to work for a university and they would match and whatever money we put in, they would match it by, you know, five percent or something like that, and it was motivating to put money away for return because I was getting this free money, right, and I thought about doing that with our children, to say, you know, want for every dollar you put in, I want to put it in fifty cents or something like that to go. You guys skin in the game, but I'm going to help you out. So that's only possible, John, because Jill and I have planned for our retirement per se, you know, our lifestyle, where we can look at it to go wow, that's that's possible. So I think, as you deal with people, I'm sure you're having those conversations, it's not just about me and Jill and our retirement,...

...it's our life and how can we plan a life that is a giving life and the shares and provides for us in retirement? That's right. So I think. I think that's and, as you know, going back to planning and goals and all of that. So how is let's talk about goals. You know we talked about that last last episode as well and this one a little bit. But how how does it help you, John, as a as a planner, as an advisor? How does it help you when a client comes in and they are really clear on their goals and what they're wanting to to achieve in the life they're really wanting to build? How does that help you? Help them really well, that's that's peeramount. It's absolutely a necessity to be super clear. That clarity and it doesn't just help, doesn't just help us as we help them with the planning, it also helps them, especially if we're dealing with the family and there's a there's a husband and wife or or a significant other involved in in the process. Being clear can and can not only help us so that there's not misunderstandings later, can also...

...help them as a couple, making sure that they are on the same page and that they both are clear and understand what the end goal is for them as well. And then as things change, as life happens, we can go back to that and say, well, we were very clear that you wanted to do acts or wires, and how is that changed? Why has that changed? And that clarity really helps us be clear going forward as well. It's just being clear at the beginning is is just probably, I hate to say something's the most important thing because of so many things are important, but that is probably certainly well up there in the list right well, and it helps us, you know, if you've got to aim for something and having that clear target out there said this is where we're going and if you thought through your why you've communicated it, it's going to help you help them build that life that they really want and in that process, have a portfolio...

...where they can have what they need in retirement, help their family along the way, if that's what they want, leave a legacy. All of that plays into why are they doing what they do? What is it that they want? And those are great, important things to know for a client as they are looking at planning for retirement, planning a life, not just a portfolio. So that's great answers, John. Thanks for sharing those with us. Thanks for encouraging us to understand the goals and the importance of having goals. So plan early. Start early. If you've not started, you're a financial planning for your retirement in your life, you need to start soon and I would encourage you to pick up the phone or go online to John's website and connect with him and let him help you understand smart goals and understand how to start early and how to plan consistently so that you can build a life that you want and have the retirement, have the life that you've really dreamed about, because John's an expert at doing that. He will guide you along the way and help you understand your wise and know how to make the investments...

...that you really need to be making in order to build a life. So, John, thanks again for us some time today. Appreciate it. You're always just full of information. I love talking with you and gleaning from you all this expertise that you have just stored up in that brain of your. So thanks for being so willing to share it and we'll talk to you on a future episode. All right, right, pleasure. So thanks for listening to the building your life podcast with 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 terrific day.

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