Sometimes I wish I could just go along with the crowd. It would make life so much easier.
It would certainly make my average conversation with clients more fun. Instead of feeling the responsibility to discuss less pleasant retirement planning topics like the possibility of premature death, disability, lawsuits, interest rate risk, etc., I could focus on the fun stuff like so many YouTubers!
Over the past year, I have watched a number of financial planning videos that seem to follow a similar theme. Let me take this moment to acknowledge that I am simplifying, as there is an enormous amount of content of every type. But I believe the pattern is clear, at least regarding those I have seen. The videos tend to follow this formula:
1- Retire as soon as possible.
2- Save less - or at least do not worry about saving.
3- Assume you will earn relatively high rates of return in the future.
To the experienced and astute observer, this pattern reveals still another pattern. Namely, that of the content creators telling people who are rightly concerned about their retirement exactly what they want to hear.
One way to think about this is by turning everything inside out. Ask yourself, do people generally express a desperate desire to work until they are 90, look forward to spending almost nothing and saving all their income, all the while expecting to make incredibly low returns on their hard-earned money?
Or are they dreaming of the day they can call it quits, prefer spending to saving, and hoping for high returns in the future so the money they have will go a long way?
The answer is obvious. Which is precisely why I am suspicious of the YouTube gang and their message.
Call me cynical, but for many Americans, their two most significant assets are their home and their 401(k) accounts. The sooner they retire, the sooner they can roll that 401(k) over to their IRA.
That might be good for financial services companies, but is it the best decision for most people? I am less certain, and the reason is that there is too much about the future that is uncertain.
For example, what will future returns be? What will tax rates be? Will we or someone we love experience an illness or injury that requires expensive medical intervention? How long will we live?
Because of these and a legion of other unknowns, we might be better served:
1- Working a bit longer.
2- Saving a higher percentage of our income.
3- Assuming lower future returns.
Our careers are the engine of our savings. The longer we work the longer we can save. Also, every year we work, including part-time employment, it is another year we might not need to draw on our savings. The compound effect of saving more and giving our assets more time to grow can have a surprisingly positive impact on our retirement income.
Most people save too little and should be setting aside a greater amount of what they earn. It is not always easy because there will always be things we need and want. The way to do it is to make saving automatic and earmark at least 50% of any raise or bonus for long-term saving/investing.
This will help to cancel out the effects of "lifestyle creep." The circumstance in which people earn more, only to spend more. This can leave us feeling like hamsters on a wheel, constantly running but never getting anywhere.
Assuming lower rates of return is wise. Having more than you expected is always easier to handle than falling short. No one ever missed a plane because they arrived at the airport too early. If future returns are robust, we can always adjust our personal spending, charitable giving, and legacy planning higher.
On the other hand, having too little will compress our lifestyle and make us less happy. And that is no fun.
Let me be clear. I am NOT advocating that anyone remain in a position that is dangerous to mind, body, or spirit. If you are truly unhappy in your profession, leaving may be the best thing you can do.
Many people consider early retirement because that is what society has told them to do. But is that what is best for them? Sticking it out, even for just an additional year or two, can make a big difference over what might become a 40-year retirement.
Someone said once, "When you want to help people, you tell them the truth. When you want to help yourself, you tell them what they want to hear."
The truth is that the future is uncertain, and those who have more will be better off regardless of what the future brings.
If you like to hear the truth and want to implement a plan based on it, please call me at (732) 844-3000. I am here to help.
Scott R. McGimpsey December 10th, 2025
Certified Financial Fiduciary®
This material was prepared by Scott McGimpsey and does not necessarily represent the views of the presenting party, nor their affiliates. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Neither Cetera Wealth Services LLC nor Scott McGimpsey is engaged in rendering legal, accounting, or other professional services. If such assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any federal, state, or municipal tax penalty. Moreover, a diversified portfolio does not assure a profit or assure protection against loss in a declining market. UNIFIED PLANNING GROUP is an independent firm.