“Math is not money… and money is not math.”
As a mentor of mine, Bob Castiglione, would say, “Math is not money… and money is not math.”
And to that, I would also say – “Financial Planning is NOT Retirement Planning…”
The world of Financial Planning consists of professionals attempting to meet client goals by using this equation:
W = t x r x m
W = Wealth
T = Time
R = Rate of Return
M = Money
The trouble with this equation is, quite often, the Financial World will assume unrealistic rates of return and force Savers into much more risk than they’re comfortable with in the stock market. Worse yet, instead of having a written GamePlan, all you have is a calculation to follow in order to see if your goals will ever be met. If all of your money is in the market and your financial goals live and die by the roller coaster of the market – you have no plan at all.
Be sure you have use, flexibility and control of your money. Especially in retirement.