In February 2024, my wife Susie and I decided to take our kids on an impromptu trip to Disney World. It was a spur-of-the-moment decision, and we only started planning the trip eight days before our departure. Little did we know our whirlwind trip would teach us that while spontaneous trips can be fun, a little more preparation goes a long way.

While I was fully present during the trip with my family, the financial advisor in me couldn’t help but notice some parallels between our unpreparedness at the Magic Kingdom and the chaos that can happen when someone is unprepared for retirement.

Here are some dots I connected between the two.

Unpreparedness for What Lay Ahead

As we scrambled to put our plans in place, we quickly realized that most of the Disney-goers around us had been organizing their trips for months, or even years. Our lack of foresight left us feeling a tad unprepared for the magic that awaited us. From deciphering the Genie+ service to figuring out which rides and attractions were suitable for the kids, we found ourselves learning on the fly. And let’s not forget those surprising daytime fireworks that sent our little ones running for cover – that’s something we really should have prepared for.

Now, let’s tie this all back to retirement planning. Imagine stepping into the post-work phase without a clue about which accounts to draw from, how much to withdraw, not knowing if you can fund your goals, or not having a clear idea of the risks that lie ahead. Sounds like riding Space Mountain without a seatbelt.

Lost Opportunities

The absence of planning also translated into missed opportunities at Disney. From not utilizing the Lightning Lane strategically to failing to plan a breakfast meeting with favorite Disney characters, our spontaneous approach deprived us of experiences that could have enhanced our visit.

Just like the missed opportunities we encountered at Disney, a disorganized approach to retirement planning can mean waving goodbye to precious chances to make your golden years the best they can be. Missing out on tax strategies, neglecting to plan for active pursuits while you’re healthy, or not taking advantage of market downturns can all leave you feeling like you missed out on the best attractions.

Unnecessary Chaos

Finally, our rushed planning contributed to a chaotic Disney experience. From desperately searching for shorter meal lines to managing conflicting preferences for rides and attractions, our lack of preparation made our trip more stressful than it needed to be.

Retirement can also become an unnecessary rollercoaster of anxiety if not properly planned. Knowing your “why” for retirement (Do you want/need to retire or is it just something you’re doing because it seems like it’s time?) is an important first step. Then there are other factors such as worrying over market volatility, struggling with misaligned goals, or lacking purpose that can make retirement feel like a whirlwind of confusion.

 

In the end, our spontaneous Disney trip served as a fantastic reminder that, just as proper planning is crucial for enjoying a seamless and fulfilling Disney experience, a well-thought-out retirement strategy is vital in ensuring financial security and fulfilling post-career life.

So, whether it’s an adventure in a theme park or the journey toward retirement, a proactive and thorough approach is key to maximizing the joys and minimizing the challenges that lie ahead.

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All opinions expressed in this blog post reflect the judgment of Approach Retirement Advisors, LLC (“Approach”) as of the date of publication and are subject to change. The information in this blog post is believed to be factual and up to date; however, we do not guarantee its accuracy. This blog post should not be regarded as a complete analysis of the subjects discussed. This presentation is for educational purposes only and does not constitute personalized investment advice. A professional advisor should be consulted before implementing any of the strategies presented. This blog post should not be construed as an offer to buy or sell or as a solicitation of any offer to buy or sell any securities mentioned herein. Clients and members of Approach may own any securities mentioned herein. Investments are subject to market risks and potential loss of principal invested, and all investment strategies have the potential for profit or loss.  Past performance is no guarantee of future results. Different types of investments involve varying degrees of risk. There can be no assurance that any specific investment will be suitable or profitable for a particular investor’s portfolio. There are no assurances that any portfolio will match or outperform any particular benchmark.