Welcome to a new week and a new theme here on the One Minute Retirement Tip Podcast. I’m your host Ashley Micciche, CEO and co-owner of True North Retirement Advisors, an independent advisory firm managing $300 million in client assets. I’m a Chartered Retirement Planning Counselor, a frequent speaker, radio and podcast guest, and I love talking to anyone who will listen about making a plan for the retirement you envision. 

The theme this week on the One Minute Retirement Tip podcast is: Retirement Rules Of Thumb You Should Ignore. I’m going to dive into several commonly peddled rules of thumb about retirement. Sometimes the advice is right. Sometimes these rules of thumb are wrong. 

According to wikipedia, a rule of thumb refers to a principle with broad application that is not intended to be strictly accurate or reliable for every situation. The downside of rules of thumb is that they are inherently flawed. 

The upside is that they are easy to remember and apply, which is particularly important in managing your finances. I think that’s why rules of thumb seem to be exceptionally common in personal finance and investing. 

Phrases like “buy low and sell high”, “pay yourself first”, and “save 3-6 months living expenses for emergencies” are so common, if I read one more personal finance article that mentions these rules of thumb, I think my head might explode. On the one hand I understand why rules of thumb are so common in personal finance. Most people are terrible with money, we’re not taught this stuff in school, and navigating your financial affairs without some helpful and easy-to-remember rules of thumb to assist would be impossible for too many of us.

On the other hand, rules of thumb in finance aren’t always helpful and aren’t always good advice. So this week, I’ll talk about a handful of rules of thumb, especially for those of you who are close to retirement that you might be better off ignoring, or at least adjusting to better suit your individual situation. 

I look forward to spending this week with you, diving deeper into some common bits of advice about retirement, explaining the nuances and exceptions that are important to understand with these rules of thumb. 

Come on back tomorrow where I’m going to discuss the most common retirement rule of thumb: Save 10% of your income for a comfortable retirement. 

That’s it for today. Thanks for listening! My name is Ashley Micciche...and this is the One Minute Retirement Tip. 

----------

>>> Subscribe on Apple Podcasts: https://apple.co/2DI2LSP

>>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs

>>> Visit the podcast page: https://truenorthra.com/podcast/ 

----------

Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance