Cool...You've Got Money. Now What?

Retirement isn't just about building wealth. It's about knowing what to do with it once you get there.

I was at an event last week and got introduced to a couple through a mutual friend. We started talking about what I do, and before long we were talking about retirement. They'd done well for themselves and are now looking forward to a fun-filled, adventurous retirement.

After they told me about everything they had, I smiled and said, "Cool...you've got money. Now what?"

They laughed. I laughed.

Then I said, "No, seriously, have you thought about how it's going to last?"

This is where things started to get interesting. I told them, "I'm probably going to ask some questions that might feel a little uncomfortable." I love getting people to think 30 or 40 years down the road. Not that I'm looing to prove anyone wrong or tell you've everything you've done is a mistake. Quite the opposite. If you spend 30 or 40 years building your retirement, shouldn't you spend a little time making sure you don't outlive it?

Have you ever looked at the fees you're paying? Not what you think you're paying, what you're actually paying. Those fees don't stop just because you stop contributing. Account management fees are for the life of the account. And then there's taxes. Uncle Sam is eventually going to get his cut. The question isn't whether you'll be paying taxes, it's whether you've ever taken the time to understand what that could look like before retirement gets here.

What happens if you retire and the market decides to have a couple of really bad years? You're still going to need income. What if your partner lives another fifteen to twenty years after you pass? Us the plan still going to work?

Those aren't trick questions. They're life questions.

The reality is we're living longer than ever thanks to modern medicine. That means our money has to last longer than ever too. Letting everything ride in the market might be okay when you're young, but when you're retired even the slightest correction can be scary. It might make sense to protect a portion of what's been built and create a stream of income that you can count on every single month, a stream of money you can't outlive.

Notice I said can't outlive. Yes, that's a thing.

I don't believe in putting all your eggs in one basket, never have. I do believe in understanding your options and then deciding what makes sense for your particular situation. Maybe we trim some fees you're paying. Maybe we create you an income stream you can't outlive. Maybe we cut some of that market risk out. Maybe we do nothing.

So let me ask you....

You've got money. Now what?