Juggling the Retirement Pieces
Q: When we discuss “juggling the retirement pieces”, what is the point?
That is an observation that comes out of multiple observations over our 47-year history from working with client families who face the transition from their previous life of living on a regular paycheck to a new life of creating their own paycheck. In many cases, if not most cases, there are decisions to be made regarding how to create the cash needed to maintain the family’s lifestyle in retirement. Most of the time, there are numerous alternative sources for cash. Today’s retirees are not “living their grandfather’s retirement” where there was nothing much to think about beyond being sure the pension check and Social Security payment made it to the bank for deposit before the bills came due.
Q: Are you saying that you cannot simply plan retirement cash flow by using the rules of thumb we have from history?
The answer would be “Correct”. But Warren Buffett put that far better than we could when asked about how he’d become rich. His answer was, “If past history was all that is needed to play the game of money, the richest people would be librarians.” Those rules of thumb are not 100% wrong, but the main danger is that they are over-simplifications.