The author kinda betrays himself in the linked article in the space of a few sentences. He's just telling people what they want to hear (in red
, the same tired approach most self-help books use) and then selling the same approach to planning that most successful retirees have taken thereafter (in blue
). Uncertainty yes, guessing not so much...
The giant fantasy of financial planning is that we all know exactly where we will be in 40 years [like most here, I never had any such illusion], so we just need to sit down and plan for it. That gives people a false sense of precision.
The reality is that most of us don't even know where we will be six months from now. We don't know what our utility bills will be in the future, let alone when we are going to retire or when we are going to die. So the natural human reaction is to say, aw, just forget it. But that's not a good choice either.
Q: So what should people do?
A: Call it what it is - guessing. Give yourself permission to let go of all this anxiety, and just make the best guess you can and be committed to the process of guessing.
Q: Your book is called The One-Page Financial Plan. So what's on that one page?
A: On my one-page plan, there is a statement at the top of what's important: For my wife and I, it is to spend time with the family, and to serve in the community. Then there are three goals: To fully fund all retirement accounts, to fully fund our kids' education accounts, and to put money away for a house.