John Maxwell Leadership Bible: (Proverbs 21:1)
Leaders can and should make their plans, but they must never forget that it is God who controls the future. "The king's heart is in the hand of the Lord," says the Bible. "Like the rivers of water; He turns it where wherever He wishes" (Prov. 21:1) Successful leaders remember this and therefore know the difference between being in charge and being in control.
We kid ourselves if we think we are in control. We may have charge of a group, but the best we can do is remain under control. God is the Ultimate Leader; and He is forever in control. It has been rightly said: "We don't know what the future h0lds, but we do know the One who holds the future."
The reality in retirement planning is the client and I both know one thing: "We don't know what the future holds."
This does not mean we shouldn't make plans. Just like lesson above, we can't be in control of the future, but when can be under control in our planning. We may be in charge of our planning efforts, but we are not in control of the results.
Does this mean we should not determine your real tolerance for risk? Your tolerance changes as we approach retirement and it might not be a good idea to continue risking the principle in your retirement account.
Withdrawal strategies may change after retirement, but they should always be considered as you accumulate your retirement savings. Qualified retirement funds (before tax dollars) are 100% taxable as withdrawals are made. Non-qualified funds (after tax dollars) and taxed only to the extent of earnings and not the principle. Where you choose to take your withdrawals from should be done to minimum your tax burden. Your withdrawal strategies and retirement funds should have the greatest flexibility possible to make certain that your retirement out lives you.
There are other things to consider as you develop a retirement plan. What are you going to do all day? Have you established an estate plan?
Have a great day!