GeneralThe WorryFree Retirement® Blog

How Safe If Your Financial Cookie Jar?

By January 26, 2022 No Comments

If you think the tax law that allows “Uncle Sam” to reach into your 401(k)/IRA cookie jar at age 72 is bad (Required Minimum Distribution) … just wait until you learn about The Law of Diminishing Returns. This law simply means, “the longer you hold on to and accumulate money, ultimately – the less it is worth.”

Let’s take a look at some of the potential ‘Cookie Monsters’ in the Financial World:

  • Inflation
  • Taxes
  • Fees
  • Low Interest
  • Waiting Too Long
    • (Listening to Wall Street’s message and falling victim to the Law of Diminishing Returns)

The ‘Financial World’, especially the folks on Wall Street, want you to believe that it is ALWAYS in your best interest to leave your money invested with them in the stock market. They will convince you that because of inflation, you’re best served to save, save and SAVE some more. Regardless of your risk tolerance, they’ll hope you can stomach the roller coaster ride of the stock market because they’re sure glad to be able to charge fees on all the money you leave in the account. Unfortunately, this message of SAVING doesn’t come with a plan for use and enjoyment of your hard earned/saved money.

One way to not fall victim to the law of diminishing returns is to understand the Three Halves of Life®. This means that the first half of life you are meant to save money. “Half-time” is when you get to start enjoying your money while you still can (as long as you take the time to develop a GamePlan). Finally, in the second half of life, this is when you start to slow down, relax and enjoy the money you saved without the fear of running out.



– Around ages 40-50 is a great time to invest in a tax-free Roth IRA, secure permanent life insurance that doesn’t go away when you leave your employer. Consider a serious plan for paying down/eliminating debts and beginning initial plans for retirement.


– Around the age of 60-72, people start to think about what it would look like to retire or even retire early (prior to full retirement age). This is the age that most people want to enjoy being with their kids and spending time with their grandkids. This is the phase at which Savers need to find a Retirement Planning Specialist to help determine what to do with their 401(k), IRA or pension – a good time to reach out to Tony Walker Financial!


– Age 72 and following is the time to relax and enjoy the ride! Around this time, having met with 15,000+ Savers, Tony has experienced clients spending less money. Inflation is a real financial issue, but with the experience of observing 5,000 written Retirement GamePlans, Tony sees that older Savers just aren’t spending the money Wall Street thinks they’ll need!

If you’ve been convinced that the best plan of action is to save as much as you can without a plan to ever enjoy your money, give Tony Walker Financial a call. Tony can help you create a GamePlan® that shows you how to use and enjoy your money, without the fear of running out.

Click the video below to learn more about the Law of Diminishing Returns and the 3-Halves of Life® . . .



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