If you came by my property and saw me out laying bricks you might ask, “What are you building?” I would reply “a house.” Your next statement might be, “Oh that’s great. What’s it going to look like?”
If my response was, “I have no idea. I’m just going to keep laying bricks and see what happens,” you might think I was a little off my rocker. You would be surprised at how many people I meet with who approach their retirement and investments with a “I’m just laying bricks, we will see what happens” attitude.
Often times the advice people receive is based on risk tolerance and rate of return without understanding how the money is going to be used. The most important question that should be asked is, “What’s the purpose of the money.”
Heading into retirement doesn’t need to be frought with uncertainty and unknown risks. Just be sure you create a plan before you start laying bricks. Remember retirement is all about cash flow, not net worth. It is your income that allows you to have the lifestyle you want in retirement.