Joining Stephen Stricklin for another podcast episode is our guest, David Rosell, financial planner, president and founder of Rosell Wealth Management, author of Failure Is Not an Option, and avid traveler. They discuss common risks that you should consider when planning for retirement.
Risks that occur in the distribution phase of retirement are inevitable. It’s up to us to be prepared with a plan when we meet these risks. The most common risks that people run into are inflation risk, interest rate risk, and longevity risk. With these uncertainties in mind, we can find peace by having a plan.
When it comes to distribution planning and how people withdraw their money during these years to handle longevity, there’s a hierarchy of needs, similar to the outline of “Maslow’s Hierarchy of Needs.” First on the list is core expenses, your necessities, and these must be guaranteed for life. Then comes joy expenses, like traveling, hobbies, and grandchildren. Last are goals: education for grandchildren, a vacation home, and leaving a legacy.
Stephen and David want you to go into retirement with confidence and peace when navigating the inevitable risks. A quote from David’s book says it all, “Hit the ball over the fence, and you can take your time going around the bases. -John Roper.”
- David Rosell’s new book, Failure Is Not an Option
- Inflation Risk: being aware that the cost of living will double every 20 years, at the rate of 3.5%
- Interest Rate Risk: considering the uncertainty of the fluctuating value of bonds, making a plan to take all the moving risks into motion.
- Longevity Risk: it’s becoming more common to live decades past what people plan for, and this fact makes all other risks more dangerous.
- Setting a financial plan based off of “Maslow’s Hierarchy of Needs.” Core expenses, joy expenses, and goals.
- David Rosell’s book, Keep Climbing, A Millennial’s Guide to Financial PLanning, and looking forward to book #3 in the making.
About Our Guest:
David Rosell is the author of Failure Is Not an Option, Creating Certainty in the Uncertainty of Retirement. He is the president and founder of Rosell Wealth Management in Bend, Oregon. He is an extreme traveler, having been to more than 75 countries on 6 different continents, including hitchhiking in Nairobi to Cape Town Africa, climbing the Nepalese Himalayas, and even tearing down the Berlin Wall.