The Top Ten Attorney Responses to Retirement Planning Questions

by Robert Rubeor

You probably read or hear about some “Top Ten” list nearly every day. But take a moment to read this one. This list is different, and probably not the kind of list you’d expect a financial advisor to write.

Reason #10: “I’m too busy”

I can’t tell you how often I hear this excuse. So many people want to plan for a better retirement, but they don’t have time. They think they’ll take care of it tomorrow or the day after that … and before they know it, several years have gone by. The best advice I can give them is to stop procrastinating.

Reason #9:    “It’s too soon”

I don’t know how this happened, but many people have adopted the notion that you don’t have to start planning for your retirement until you’re almost there. This is totally incorrect. The truth is, the sooner one starts retirement planning, the better chance they stand of having the kind of retirement they want. It’s never too soon. Many people start retirement planning in their early twenties!

Reason #8:    “It’s too late”

If one is already near or past their retirement eligibility date, they may think that whatever they’ve got is what they’re stuck with and it’s too late to do anything about it. Think again. If you’re unsure of what your options are, speak to a professional. Even if you’ve already retired, it’s important to consider how you’re receiving income and how long it will last. It’s never too late to revise your retirement income distribution strategy.

Reason #7:    “I don’t need to”

I’ve heard this excuse many times and it always baffles me. Many people think that because they’ve been diligent about contributing to a savings account, they’re all set. While saving for retirement is good, one also needs a plan for retirement income distribution once they enter retirement. Are you certain that what you’re saving will be enough? Have you considered your distribution plan? What about taxes? What about inflation? And are you sure your money will be properly invested? There may be other, better options and it may prove worthwhile to look into them.

Reason #6:    “I don’t have enough money to get started”

This excuse seems marginal at first glance, but there is some truth behind it. People need to have money to save or invest money. However, unless bills are exactly equal to or greater than net income, one has enough to get started. Starting small is better than not starting at all, and if one plans well, they’ll eventually have more to work with.

Reason #5:    “My finances are a mess”

This is all the more reason to seek out an advisor who can help sort through and understand the assets. Perhaps there is a 401(k) from a former employer that has not been rolled over, a couple of savings accounts, a trust from a deceased relative, some stocks that one’s parents bought in your name when you were younger … a circumstance like this can be confusing, but leaving it as it is won’t improve the situation. Consider speaking with an advisor who can look at the complete financial picture, help one understand it, and help to develop a plan to make a “financial mess” work for you.

Reason #4:    “The Government will take care of me”

I am hearing this less and less but I still occasionally hear it. The bottom line is this … there’s a chance Social Security may not be available when you retire, and even presuming it is, it may not be enough to provide an ideal retirement income. If one is planning to retire on Social Security alone, I would advise one creates a back-up plan at the very least.   

Reason #3:    “Between my savings and my 401(k), I’ll be fine”

Saving for retirement without an income distribution plan can be a mistake. How will one use that money once they have it? And while one may think they’ll have everything they’re going to need, have you considered inflation? Taxes? Stock Market Corrections? Furthermore, many more people are living past 90. Will your assets last that long? If one outlives their income, what then? It’s a good idea to look ahead and plan lifelong income.

Reason #2:    “I don’t want to think about it”

Many people procrastinate simply because the thought of discussing financial matters (or growing old) is unappealing. I can certainly understand that. But consider this … if one can ‘bite the bullet’ a little now and put a firm plan in motion, they may not have to think about it again for quite some time.

Reason #1:    “I don’t know how”

Even though this is the hardest to admit, it is the most common. If you knew everything there was to know about financial planning, you’d probably be a financial advisor yourself. While it is possible to do everything on your own, that generally involves a great deal of research and a huge time commitment. If you’re putting off retirement planning because you don’t know how, consider speaking to a professional who does.

These are just some of the reasons why people don’t plan for retirement … but these are reasons, and not excuses. If you have retirement goals you want to reach, I would recommend you speak to us and set up an action plan. The sooner the better.