Retirement Planning Sucks-Continued

The Putnam study really exposes the ugly myth of retirement planning. I always coach individuals on cash flow and since it’s still near the first of the year-here’s a quiz you may want to take that I ask all my clients.In a nutshell the quiz asks if your investments are throwing off enough cash to pay for your Starbucks outing-the average American spends between $1,500 and $1,800 a year at Starbucks. I want you to celebrate the fact that you can afford this luxury if you choose to partake at Starbucks. But here is what I found after 15 years as an investment advisor. If your portfolio is not generating income when you retire you will not be inclined to make the necessary changes. Most of us fight change and a lot of retirees have the attitude of “I’ll make due”. I really feel for the individuals in the Putnam survey-let’s be sure we learn from their mistakes!

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