While struggling with getting back into racing shape, the tune “Working My Way Back to You” was stuck in my head. Maybe it’s because we recently saw the Broadway hit Jersey Boys; the song has nothing to do with running, but the idea of regaining my lost fitness is not dissimilar to the love lost situation of the song.
The first step in getting back into shape is gradually changing bad habits into good habits. It takes time; some say three weeks of constant effort is required to create a new habit. Developing routines is my way of “automating” my disciplines. For example, I’ll force myself to get out the door for a run before work. Once the daily routine is established, I’ll add refinements, like a long run on Friday or Saturday, then finally add a hard run at the beginning of every week.
For the same reason, it is important for investors to maintain routine disciplines. For those people still accumulating assets in anticipation of their future needs, regular systematic investing, like employees contributing to a 401k plan, can pay big rewards. While it can be painful to start the process, it soon becomes second nature, and over time the benefits add up.
Because of the workout log I’ve maintained for years I have a pretty good idea of how much effort, commitment, and focused training is required for me to accomplish a particular performance in an upcoming race.
Likewise, clients need to have a good idea of how they handle their own spending before I can recommend a strategy for producing retirement income. Clients that have the ability to adjust their spending, and keep it within their realistic wealth constraints, can utilize the most flexible retirement income distribution strategies. Clients who need an unwavering monthly income might need to look at more restrictive income distribution strategies.
Retirement is one of life’s key financial milestones. The adjustment from working for a living to living on accumulated wealth, pensions and Social Securityis best handled with the help of advisors experienced in matching available strategies with your individual needs, time horizon, risk tolerance, goals and objectives.
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