Retirement planning isn’t just about investments and Social Security; it’s also about how you budget and prepare for the expenses you know are coming. In this episode, I break down two essential but often misunderstood tools: sinking funds and target date funds.

First, I explore how sinking funds, popularized by the likes of Dave Ramsey, can help retirees avoid high-interest debt and budget for large, irregular expenses like vacations, home improvements, or even a future wedding.

I share personal examples and stories from my clients to show how setting aside money intentionally can be a game-changer, especially in retirement.

Then I shift gears to target date funds. They’re in nearly every 401(k), but are they really the best option for you? I will explain what’s “under the hood” of these cookie-cutter investment options, their pros and cons, and why one-size-fits-all may not fit your goals or risk tolerance. 

I challenge you to go beyond age-based investing and build a portfolio that reflects your unique vision for retirement. Whether you’re still saving or already retired, this episode offers clear insights to help you plan smarter and spend more intentionally.

You will want to hear this episode if you are interested in...

• (00:00) Intro
• (00:45) Why I love sinking funds, and how to use them.
• (04:43) Budgeting for cars, vacations, weddings, and home repairs.
• (10:08) The big mistake retirees make when taking lump sums.
• (13:42) Breaking your retirement expenses into categories.
• (17:09) Target date funds: what they are and how they work.
• (20:32) Why not all target date funds are created equal.
• (24:41) The real disadvantages of cookie-cutter portfolios.
• (27:38) Why your retirement plan should reflect your personal vision.

Resources & People Mentioned

• BEST Retirement Withdrawal Strategy | Maximize Your Retirement Income
• 3 Steps to Retirement Planning

Connect With Gregg Gonzalez

• Email at: [email protected]
• Podcast: https://RetireStrongFA.com/Podcast
• Website: https://RetireStrongFA.com/
• Follow Gregg on LinkedIn
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• Follow Gregg on YouTube

 

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