Retirement Planning Doesn’t Work

Is there anyone in the world today that thinks traditional retirement planning works well? Every statistic would suggest that traditional retirement planning does not work-and we are in deep dew dew! What got me to thinking about this crisis was an article in the New York Times called Why Doctors So Often Get It Wrong.. The article stated that with all the tools available to modern medicine-the blood tests and M.R.I;’s and endoscopes-you might think that misdiagnosis has become a rare thing. But you would be wrong. Studies of autopsies have shown that doctors seriously misdiagnose fatal illnesses about 20 percent of the time! Guess what-I would venture that traditional retirement planning methods would be ecstatic at a 20% failure rate. The article goes on to state that the rate has not really changed since the 1930’s. “No improvement!” was how an article in the Journal of the American Medical Association summarized the situation. The Journal of Certified Financial Planners could also have the same headline! Here’s an interesting observation: At the insistence of pilots, who have the ultimate incentive not to mess up, airlines have studied their errors and nearly eliminated crashes. “Unlike pilots,” Dr. Britto said, “doctors don’t go down with their planes.”
Remember this little story the next time someone comes up with one of those “can’t miss” financial planning strategies. Concentrate on cash flow-not promises 30 years down the road!

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Dansette