The last leg of major horse racing took place last weekend in Long Island—the Belmont Stakes. Thousands of people gathered to watch preparation and execution come together in one of the most challenging and exciting horse races in the country.
While watching, I realized the similarities that this horse race has with retirement planning. Preparation and training will only take a horse and its jockey so far. When the gates open, the Belmont Stakes, known as the “Test of a Champion” is all about endurance as it’s seen as the marathon, last-leg of the Triple Crown race.
This horse race compares to retirement planning in the sense that your nest egg needs to last you the rest of your life. As such, the endurance of your portfolio is an extremely important component for ensuring the retirement lifestyle you desire. Much like a horse’s training and execution, a long lasting nest egg relates to both the amount you saved/prepped before retirement and your withdrawal rate once you get there. Lack of preparation can leave you far behind your goals, and withdrawing too much too soon can cause you to run out of steam before you reach the finish line.
Now of course, these horses couldn’t get through this sort of pressure and distance without a trainer. Every horse is different as it relates to the training strategy that works best for them. The horses need to learn how to hold the weight of a rider, practice around the track, and experience race-like situations to be sure they’re prepared to perform at the highest professional level.
When it comes to retirement planning, this is where we add value for our clients—acting as a coach through the entire process. Many people who enter retirement don’t have the benefit of having someone help them reach and ultimately cross the finish line. It can be a daunting experience and a time when you feel very much alone in the decision making process. It doesn’t have to feel that way, especially if you find the right, qualified financial professional to work with. You should be confident in your advisor’s ability to get you to and across the retirement finish line. There are so many decisions to be made and there is certainly no, one-size fits all approach.
Call us today for a no obligation, complimentary financial review. We’ll assess your current retirement strategy and help you to take advantage of your strongpoints and fill in your weak spots where necessary.
So, regardless of whether your favorite horse won the Belmont Stakes, you can cross the retirement finish line feeling prepared and accomplished by knowing you’ve planned for a winning retirement.