Ep 3: This is Why You Never Assume in Retirement

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We often see people make certain assumptions about retirement that just aren’t correct. Let’s explore some of these and discuss why these common beliefs might get you in trouble.

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Show Notes

Figuring out how to plan for retirement can be an overwhelming task. With so much information available to us, it can be challenging to decipher good from bad and right from wrong. From taxes to income to spending, how can you determine what is fact and what is fiction?

On this episode of the podcast, we want to spend some time clearing up a few of the most common assumptions. Each of these might make sense on the surface or might have even been accurate in the past, but they don’t always apply to every individual we work with.

So let’s take you through the assumptions we’ll dig into during the show. First, how much of your healthcare needs will Medicare cover? The assumption is that it will, but you need to know why that isn’t accurate. There are things that won’t fall under this insurance, depending on which type you have, and not preparing for that can be very costly.

Second, spending in retirement will be different for everyone and it all depends on the lifestyle you want to live. But will that spending drop once you’re no longer working? It could, but planning for that to be the case could put you in a hole. The key is to make sure you identify what your expenses will be and then build a plan that guarantees enough income to meet those needs.

The next assumption deals with working and it’s two-fold. Some people assume they’ll never work again and other assume they’ll never stop working. Whichever camp you fall into, you’ll want to make sure you’re prepared for the unexpected because priorities will change over time.

The fourth assumption we’ll discuss is investment strategy once you reach this point in your life. The goal is to protect what you have built, but do you have to be ultra-conservative to do that? The belief is that you do, but that’s not always true. Inflation is one factor that needs to be taken into account. And remember that there are conservative options that can still provide a good return.

Finally, we’ll talk about taxes. Preparing for taxes in retirement is a critical piece of a comprehensive plan and you need to make sure you aren’t just assuming that you won’t be paying as much later in life. You have withdrawals to make out of retirement accounts. Tax rates might go up. These are just a couple of the things we work with client to plan for.

There’s a lot to go through but this can be a very valuable episode for anyone still building a plan for retirement.

Listen to the entire episode or click on the timestamps below to skip ahead to a particular question.

[1:40]Bullish on America?

[3:54] – Assumption: Medicare will cover my healthcare needs

[7:30] – Assumption: I’ll spend less in retirement

[9:45] – Assumption: Working in retirement

[11:41] – Assumption: I need to be very conservative with investing in retirement.

[14:11] – Assumption: Taxes will be lower in retirement.

Thanks for checking out this episode. We’ll talk to you again soon.


“I would really challenge everyone to go through and have a plan or have at least a thought process through each of these items that we’ve discussed today so that you can be prepared versus being surprised.”

-Scott Sierens