Nearly every retiree that we work with has two main objectives for their retirement strategy. The first – enjoy the highest amount of income from their retirement assets as possible. The second objective is to leave behind the biggest financial legacy. Seems pretty straightforward at first glance until you understand how it’s being done.
You see, many retirees are trying to accomplish these goals using a one-suitcase approach. What do I mean by that? You’ve seen it on your account statement, heard it in the media. “Growth and Income” portfolio, 60/40, dividend-paying stocks. These are all one-suitcase strategies applied across many retirees’ financial picture hoping to tackle these two objectives.
Picture this, you’ve planned a two-week vacation to a destination you’ve never been and will never go back to. You’ve spent many hours preparing for this trip and you’re bubbling with excitement. You’ve made all the arrangements, filled up the itinerary, checked every box on every checklist. Now, it’s time to pack. You know what you need to take with you and now it’s a matter of getting it all into that one suitcase. There is so much to do on your trip– there will be dinners, walks, daytime and nighttime events. What outfits can you re-wear? Do you need two pairs of shoes or three? What if there are gifts you want to bring back? Things for yourself or family members that you want to enjoy from this special trip. Need a little space for that too. You pack and re-pack and thankfully the zipper makes it all the way.. barely.
Most retirement strategies function this way. There is one suitcase, one strategy for a “trip” that will only happen once. The suitcase must have room for everything – all that you’ll need to enjoy those two weeks and a little “going home” space.
What if you thought about it differently? Remember this is a trip of a lifetime – not the family vacation to the beach for a week. You spent hours planning, set aside more money than you thought necessary and now it’s time to enjoy it. Here’s an idea: Does it have to be crammed into that one suitcase? What if you brought along two suitcases? You could pack all the outfits you need. Even throw in the cool hat that will be great for that one walk on the beach. You could enjoy everything on the itinerary and even have flexibility for things that you never even thought of. What about the things you want bring home – to enjoy, to remember, to give to friends and family memorializing the big adventure? Good news, you have room for that too.
Sure, it’s a little out of the box, not the thing that everyone is doing but doesn’t it make sense? Can’t you breathe a little easier? Some extra room for some extra enjoyment.
You don’t have to stuff it all into that one suitcase. You don’t have to go one pair of underwear short (“Heavens no!”) and leave behind those extra pair of shoes. Instead of having a small corner of a suitcase for anything that you want to enjoy from your trip you could bring along another one. That’s how it can be when you take a two-suitcase approach to retirement.
The 4 Buckets Retirement Income Strategy℠ brings a fresh perspective to your retirement strategy. What if you could enjoy more income than you are currently? What if you could position your financial legacy for greater growth? It’s a different approach. One that requires a new lens, a new way of thinking. There will be questions like, “Yeah, but do I really need another suitcase?” Maybe not, but don’t you think the trip would be even better?
