Today's Hack

You can’t predict a lot of things: how long you’ll live, the next market crash, healthcare costs, tax rates. But you still have to plan for these things. On today’s episode, we’ll explore how you should handle planning for the things you can't predict.

How do you plan for the things you can’t predict? We can’t tell the future when it comes to most things, but having a robust retirement plan can protect you from life’s unpredictable moments.

The Next Market Crash 

We’ve had 12 years of mostly up markets. When will the next market crash be? It’s going to happen we just don’t know when.

If you haven’t experienced a long and severe downturn, you might be feeling great when it comes to your financial plan. But you want to meet with an advisor and have safeguards before the next crash comes along.

Healthcare Costs  

As we’ve seen already healthcare costs are skyrocketing. We know healthcare prices are going up, we just don’t know by how much. So, you have to be extra vigilant when planning.

When we are planning for healthcare, we generally use twice the level of inflation of everything else. Which is a lot, especially now. Historically prices are always going to be higher in the future. You want to make sure you can handle these costs.

Future Tax Rates 

You can’t predict what tax rates will be like in the future. Especially as we switch various administrations. But it’s safe to guess they’ll be higher in the future.

We like to prepare as much as we can for taxes now. It’s an important conversation with your advisor you need to have. Taxes can be a huge risk if you don’t plan correctly.

Planning for Longevity 

How long are you going to live? You don’t really know. Even if you have a family history of health problems you could be the outlier. You always want to play on the safe side and plan for a long retirement.

What happens if you plan with the assumption you won’t live long in retirement? What happens if that isn’t the case? You probably don’t want to get a job in your 70s or 80s. It’s a big risk to assume the length of your life, let’s plan on the safe side instead.

Listen to the entire episode or skip ahead using the timestamps below. 

[2:01] When will the next market crash be?

[4:59] What will healthcare costs be?

[6:51] What are tax rates going to look like?

[9:51 ] How long are you going to live?


A Quotable Moment:

“Usually, every ten years or so you’re going to see that change, bull to bear market long term. It’s something you’re going to have to live with throughout your retirement and you have to plan for it…”

-Phil Putney

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