Goal vs. Market Focused

Wednesday, January 9th, 2019

Good Morning Relaxing Retirement Member,

Over the last 30 years, the successful investors I’ve witnessed were relentlessly goal-focused.

The unsuccessful ones were anxiously market-focused.

There is a huge difference.

When markets move quickly, as they have in droves over the last month, and the financial media creates more hysteria, it’s easy to lose sight of your Retirement Bucket™ goals.

In light of this, as we enter 2019 together, it’s a great idea to reaffirm what your top three goals are for your Retirement Bucket™ during this critical phase of your life:

  1. First and foremost, to provide consistent short-term cash flow each and every month, as well as funds for cars, vacations, home improvement, and gifts to your extended family. Aside from your good health, if you don’t have the necessary cash flow to do what you want, where you want, when you want, with whomever you choose to do it with, life is not as enjoyable as it deserves to be.

    Withdrawing funds from your Retirement Bucket™ is challenging enough for those who have had the discipline to save and build over their working years like all of our Relaxing Retirement members.  Without a carefully thought out system, it can be even more psychologically challenging when you have to withdraw funds in the middle of a market correction.

    Knowing that you will experience volatility and corrections for the rest of your life, we strongly recommend holding several years’ worth of your pre-planned withdrawals outside of the daily volatility of your long-term equity holdings, and allowing your dividends to consistently replenish your money market liquidity.  This puts you in the enviable position of not having to panic and sell in a temporary down market cycle to provide for your scheduled withdrawals.

  1. Second, long term growth to generate the increased cash flow you need each year in the future to keep pace with your rising lifestyle costs (inflation). Earning the long term, “real” investment rate of return you need to earn is not a bonus. It’s an absolute necessity if you want to maintain the lifestyle you have worked so hard for.

    In stark contrast to stock picking, short term trading, and market timing, we strongly believe that your strategy for the rest of your Retirement Bucket™ be built on “capturing” the long-term historical premiums found in equities as a whole, and of specific asset classes.  This can be accomplished by strategically “owning” a cost-effective, globally diversified portfolio representing thousands of value driven, profit seeking companies in the United States and all over the world.

  1. Finally, to be tax efficient, i.e. taking advantage of tax efficiency opportunities while still satisfying your cash flow needs and accomplishing your growth goals.

    You deserve to experience all the benefits from successfully earning and saving, thus you have every right to legally reduce, and potentially eliminate, the amount of income taxes you are obligated to pay so that you may keep more of what you have earned.

Staying on track with all three of these Retirement Bucket™ goals requires discipline, and a system and a structure, and that’s what our Relaxing Retirement Coaching Program was built to provide for you.

All of this is critically important to keep in the forefront of your mind when more and more financial media “noise” rears its ugly head the next time markets turn.

Stay tuned as we dive into each step in The Relaxing Retirement Formula™.

Committed To Your Relaxing Retirement,

Jack Phelps
The Retirement Coach

P.S. Arm yourself with the questions you must ask to determine if your financial advisor has a legal obligation to work in your best interest at all times vs. the best interest of the company they represent. To receive a free copy of the Consumer Guide titled: “The 13 Questions You Must Ask Your Retirement Advisor (or Any Financial Advisor You’re Thinking of Working With) Before You Hire Them”, simply click this link: http://www.theretirementcoach.com/free-consumer-guide-how-to-protect-yourself

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I appreciate the trust you place in us. Thank you!

(The content of this letter does not constitute a tax opinion. Always consult with a competent tax professional service provider for advice on tax matters specific to your situation.)