The Green Zone Newsletter - September 2023
Over the past several months as we've been talking to various clients, we are hearing some recurring themes and questions... and sometimes even potential mistakes we help guide clients away from.
Today, I'm sharing a few high-level takeaways about some of the money mistakes we see folks make in retirement so you can work to avoid them:
Retirement Money Mistake #1: Spending More Than You've Budgeted For
In your retirement plan, you will end up with various projections for when you can retire, how much cash flow you'll have, what type of budget you should adhere to, etc. But it can be difficult to go from having a full-time career that allows you to spend money without a second thought to needing to potentially temper spending levels in retirement. Sometimes, retirement planning is the first time our clients have had to create and stick to a budget (even if it's a robust budget). Other times, the thrill of retirement induces folks to spend more extravagantly than they ever have as they look for excitement in their golden years.
Whatever the case may be, the most common mistake we help clients avoid is overspending. In our practice, we do this by developing truly personalized and comprehensive financial plans, projections and budgets for our clients and offering regular check-ins to help them monitor their cash flow.
Retirement Money Mistake #2: Taking Up Investing As Your New Part-Time Hobby
Faced with a lot of extra time and a constantly available news cycle, some retirees decide it's a great idea to "play the markets" on their own. While this may sound like a fun hobby, being new to investing or potentially having an overconfidence in how it all works can lead to classic investment errors such as investing too aggressively, chasing "hot tips," over-concentrating assets in a single company or sector, or even excessive trading that cuts into returns or increases taxes owed.
We encourage our clients to avoid turning their wealth into a game or a hobby and instead, to trust their team of financial professionals to help guide them in their efforts. We develop thoughtful investment strategies and financial plans very intentionally. But if our clients have new ideas they'd like to incorporate or want to feel more involved, we are happy to make that happen... as long as it's done so strategically and in alignment with their big picture goals.
Retirement Money Mistake #3: Making Emotional Decisions To Change Up Withdrawal Strategies
With each and every one of our retirement plans we develop, we create a withdrawal strategy that helps guide our clients in taking out funds from their various retirement accounts to create their retirement income. These strategies take into consideration our clients' health and life expectancies, income timing needs, how various accounts may be taxed depending on when and how much you pull from them, etc.
But some folks come to us after hearing what a friend or family member is doing, convinced that must be the right move for them as well. Or after reading an article on the markets, they will all of a sudden feel strongly about changing things up.
While these may not be bad thoughts, we take any new information and ideas and make sure to run the numbers so that we can actually see what consequences they may have. Because we believe that retirement planning is like a Rubik's Cube: each component is a dynamic thing and when moved, it will affect each and every other part of that plan. We can certainly pivot with clients' changing wishes, but always want to do so in a thoughtful, prudent way.
If any of these topics resonate with you or if you simply want to have a conversation about your current financial situation, please don't hesitate to reach out. To make things easier for you, you can click here to find a time that works for you.
Furthermore, if you happen to know someone who isn't a current client but could benefit from a second opinion or an experienced perspective on their financial matters, please don't hesitate to share this email with them. I am more than happy to extend my assistance to those seeking informed guidance.
Until next month,
Jeff & the Green Financial Group Team
Upcoming Dates: Key Dates To Remember
- Monday, September 4 - Labor Day (GFG Office & Markets Closed)
Check It Out: Our Most Recent Resources
Explore our comprehensive roundup of resources, including insightful podcasts, informative videos, and thought-provoking blog articles, designed to empower you with valuable financial knowledge and help you make informed decisions for your financial journey.
The Pros & Cons of Investing in Cash for the Long-Term (Ep. 73)
When you think about long-term investments, you probably focus on stocks, bonds, real estate, funds, and the like. But what about cash? In this episode of The Green Zone Podcast, hosts Jeff Green and Lauren Smith cover some of the key considerations you should be making if you’re pondering the pros and cons of long-term investments in cash. Together, they discuss:
- The reason some folks are prioritizing cash funds in their investment strategy
- Why you must pause to evaluate your near-term and long-term goals and needs
- How to think about a 60/40 principle with regards to your portfolio
- The pros and cons of CDs (and what a “ladder strategy” is)
- Taking the equity risk premium into account
- And more!
Get to Know Dylan: Your Trusted Relationship Manager at Green Financial Group
Today, we introduce you to Dylan, the newest team member at Green Financial Group. Dylan is a financial advisor and will be serving as our Relationship Manager, working closely with Jeff and Lauren. We sat down with Dylan to help you get to know him better and learn about his role at Green Financial Group.
The Power of a Written Financial Plan: Achieving Measurable Goals
By Lauren Smith, MBA, CFP®
For anybody hoping to achieve financial independence, one tool stands out as a necessity - a written financial plan. More than a mere document, a financial plan is a guide that helps steer you towards your financial goals. Before you start rolling your eyes or scrolling for the next article to read, here are a few reasons why having a written financial plan is not just helpful, but essential for achieving measurable financial success.
The Power of Conscientious Planning and Investing at Green Financial Group
By Jeff Green
The most profound impacts in the world of finance don't simply arise from numbers on a balance sheet - they stem from an unwavering commitment to clients' well-being and their future. At Green Financial Group, we make this commitment the cornerstone of our practice. Our dedicated focus on conscientious planning and investing is not only the driving force behind our existence, it's the catalyst for life-changing outcomes.
Unleashing Wisdom: Lessons Learned from a Rescue Dog
By Lauren Smith, MBA, CFP®
There are countless tales of how animals, particularly dogs, have positively impacted human lives. So it should come as no surprise that I’m here to tell you today about how my journey with Mamba, a rescue dog from K-9 Angels Rescue, has been transformative in my personal and professional life.
Navigating Market Volatility: The Impact of Global Events on Energy Markets
By Jeff Green
As a Financial Advisor and the founder of the Green Financial Group, I've spent my career helping clients navigate the complex world of retirement planning and wealth management. One sector that continuously faces high levels of volatility is energy - particularly oil and gas. Geopolitical events, economic factors and other global happenings can trigger significant fluctuations. These shifts can dramatically impact professionals within this industry and their investments.
Seek Balance: Quotes To Live By
