The information I am providing is my opinion and not necessarily that of my firm or this platform. I am only providing general educational information and not any customized investment recommendations. You should consult with your Financial Advisor, Tax Advisor or Attorney on your specific situation. Nothing shall be construed as Financial, Tax or legal advice or recommendations.

In this episode of the "Confident Retirement Podcast" host Kris Flammang discusses the common mistakes people make when planning for retirement. Flammang highlights three key mistakes observed during his two decades of experience working with individuals and business owners. He emphasizes the universality of these mistakes, regardless of the state of the economy or government. The first mistake is ignoring the risks associated with retirement, regardless of one's financial preparation. Flammang stresses the importance of acknowledging and preparing for the "certainty of uncertainty" in life and retirement plans. He introduces the concept of three types of retirees: overfunded, underfunded, and constrained investors, with most people falling into the latter category. These investors must be especially mindful of longevity risk, inflation risk, and timing risk in their investment strategies.

Flammang then delves into specific retirement planning strategies to address these risks. He critiques the traditional total return method for retirement planning, pointing out its shortcomings in addressing the risks for constrained investors. Instead, he proposes an income plan or strategy that segments funds according to the timeframe of usage. This approach allows for more aggressive investment of funds not needed for a long time, while ensuring that immediate income comes from stable sources. Flammang also emphasizes the importance of not taking the Social Security claiming decision lightly, as it can have a significant financial impact over a person's lifetime. He advises considering factors like marital status, health, family history, and financial need when making this decision. The episode concludes with Flammang urging listeners to not overlook these common mistakes and to adopt a well-thought-out income strategy that prepares for the uncertainties of retirement.

Highlights from today's episode:

• Three Types of Retirees: Learn about the classification of retirees into three categories: overfunded, underfunded, and constrained investors.

• Critical Retirement Risks: The importance of being aware of and preparing for three major retirement risks: longevity risk, inflation risk, and timing risk.

• Income Planning Strategies: The traditional total return method of retirement planning and advocates for an income planning strategy. This strategy involves segmenting retirement funds based on when they will be used, allowing for tailored investment approaches based on time horizons.

• Social Security Claiming Decision: The significance of the Social Security claiming decision. Consider various personal factors like health, marital status, and financial needs before deciding when to claim Social Security, as this decision can greatly impact long-term financial stability.

• Embracing Uncertainty: The concept of the "certainty of uncertainty" in retirement planning. Flammang advises listeners to prepare for unpredictable changes and uncertainties in life and the economy.

Enjoy the show!

Connect with Kris:

Website: https://www.lpfadvisors.com/

LinkedIn: https://www.linkedin.com/in/kristopher-flammang-lpfadv/

Twitter: @kflammang

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