DIY Retirement

Have you ever gotten sick or maybe developed a new symptom in your body that you didn’t recognize before? What did you do? Did you ask a friend? Did you go see a doctor? Did you Google it? 

One of the most common reactions, and one I am certainly guilty of, is recognizing a problem with our health or wellness and then turning to the Internet to self-diagnose. It seems like since the invention of the Internet and websites like WebMD, people have been scouring the web in search of a solution or match for the symptoms they are experiencing. This can often lead to frightening false conclusions. 

You might determine that you have some rare foreign fungal infection with no cure which undoubtedly causes unnecessary stress and anxiety. When we introduce the opinions of the masses into our personal situation, we can often be led astray. 

The cost of that can be far higher than if we had just made an appointment with the doctor. The same thing can happen with your retirement planning. When you try to “do-it-yourself,” you could end up doing yourself harm. 

I have a great friend who is a DIY king. If you were to see a picture of his home from when he purchased it compared to his home today, you’d notice a striking “before and after” difference. 

He is the kind of person who believes strongly in the mantra of “Why pay someone else to do something that I can do on my own?” He’s done some sort of remodel on every room in his home and even added two rooms onto the house by himself. He’s somewhat of a “jack of all trades.” 

He’s even applied that thinking to his finances and investments and has had a successful run over several years while accumulating money in his retirement portfolio. However, unlike remodeling your home or fixing the lawnmower, there can be much larger risks that you might face when you approach retirement planning on your own. Most people only have one shot at a great retirement. So, how do you give yourself a great opportunity to enjoy what some would argue to be the most coveted years of your life?

Have a Plan

The most important thing when you are considering retiring is to have a plan in place. The “I’ll figure it out” mentality for your retirement would be the equivalent of making a Saturday morning run to Home Depot to purchase the materials to build your dream home. 

If you were to show up at your plot of land and unload your lumber, cement mix, sheetrock, and shingles with no plan, you wouldn’t know where to start. All homes are built based on a set of blueprints. The very specific calculations in the blueprints dictate how much lumber will be needed, how many bricks, how tall the ceilings are, and so forth. Many people show up at retirement with a truckload of investments and no idea how to build their retirement “dream home.”

Don’t Rely on “Rules of Thumb”

There are several common retirement “rules of thumb” to avoid outliving your money which often become a topic of conversation. Maybe the guy you chat with at work about the news or investments has told you about the “4% rule”, or to “just buy stocks and live off the dividends,” or just “buy the index because it’s hard to beat the index.” While some of these “rules of thumb” might have merit, that doesn’t mean they’re the right approach for you. They are not specific to your individual needs, and everyone’s financial picture is different.

Separate Emotions from your Finances

I have often sat down with clients to discuss their retirement savings and found that it frequently becomes an emotional conversation. They might have worked hard for 30 years or more to build their portfolio. When they think about this money, it is often tied to the past and all their life’s work. So, how do you take something you’ve spent your whole life working to obtain and flip it to work for you for the rest of your life? That’s a big question. It’s also something to consider seeking professional guidance for.

Retirement, for many people, might come with a bucket list or other aspirations to pursue in their latter years. For some, it might make sense to engage the services of a Financial Planner to help make decisions in the best interest of their financial future so they can have a higher level of confidence in their financial plan and enjoy the best years to come.ν

Content in this material is for general information only and is not intended to provide specific advice or recommendations for any individual. Consult a financial professional to discuss your personal situation.

Brandon Grable is a registered representative of and offers securities and investment advisory services through MML Investors Services, LLC, Member SIPC. 949 South Shady Grove Road, Suite 300, Memphis, TN 38120. 901.767.5951. CRN202709-7145688