Navigating the Future
Out of the corner of my eye, I see the headlines about an uncertain economic future, including higher tariffs and lower taxes, and everything else in between. With a three to five-year runway until I retire, you might think I am concerned about these headlines.
Barely enough to skim the headlines, not enough to read the articles.
As creator of "The Coffeehouse Investor," I have long advocated for the peace of mind that comes from planning with a diversified portfolio and focusing on what I can control. It has gotten me this far, and I’m not changing course, regardless of the headlines. As I approach retirement, I am focusing on four key components of my financial plan that I want to share with you. 
Personal Rate of Inflation
My personal rate of inflation, which reflects how much my costs increase year over year based on my spending, is likely to have the largest impact on the sustainability of my portfolio over my lifetime. Fortunately, this rate is largely within my control. While we cannot control the price increases associated with inflation, by diligently monitoring my personal inflation rate, I can adjust my spending to help ensure my savings last throughout my retirement years.
Spending
Speaking of spending, this is the absolute number that drives my personal inflation rate. By creating an awareness of where my dollars go, I can make adjustments along the way, so that my spending is closely aligned with choices that enrich my life.
Asset Allocation
Having experienced eight bear markets over my 45-year career in the financial services industry, I remind myself that bear markets are a fact of life. While we can't predict when the next one will be, my asset allocation is prepared for the reality that I will probably endure a few more in the years ahead. I am keenly aware that “sequence of returns" risk means that a bear market around my retirement could significantly impact my wealth if I have too much exposure to stocks. Therefore, I’ve adopted a conservative approach, hoping I am wrong and that the stock market will continue to help me meet my goals.
Tax Planning
With my changing financial picture in the years ahead, understanding my projected tax rates is crucial. By calculating what my tax rate might be at various income levels, I can strategize my income to help minimize taxes over the long haul. This proactive planning will help me make the most of my retirement income over my lifetime.
Keep Your Priorities in Focus
While the global economy remains uncertain, focusing on these four key components of my financial plan allows me to ignore the noise and concentrate on what truly matters. By doing so, I hope to inspire you to do the same.
If you want to learn how to build a financial plan for the next four years and beyond, I invite you to connect with me for a complimentary strategy call.* Discover how our wealth management approach seeks to maximize returns, structure for tax efficiency, and mitigate risk.