TRANSCRIPT
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#80 - Investing in Retirement - Part 1: It Starts with a Plan
In this episode, Eric Blake introduces a new series on the Seven Essential Strategies for Successful Investing in Retirement. He explains why retirement today looks very different from the past, how the Great Wealth Transfer impacts women, and why the most important first step in retirement investing is having a clear, personalized plan that connects values, goals, and financial resources.
Introduction
Eric Blake: On today’s show, we are kicking off a new series on the seven essential strategies for successful investing in retirement. First, we will set the stage for how retirement has changed and why the Great Wealth Transfer makes this such a critical time for women to feel confident and educated about managing wealth.
Eric Blake: Welcome to another episode of the Simply Retirement Podcast, where we want to empower and educate women to live your retirement on your terms. I’m your host, Eric Blake, practicing retirement planner with over 25 years of experience, founder of Blake Wealth Management, and I would not be the man I am today without the women in my life.
Eric Blake: This is the first episode in our series on the seven essential strategies for successful investing in retirement. Over the next few episodes, we will walk through two strategies per episode; why they matter; and, more importantly, how you can apply them to your own retirement. Joining me once again to unpack all this is Wendy McConnell. Wendy, how are you?
Wendy McConnell: I’m good. How are you?
Eric Blake: I’m well. As we talked about before we started the episode, I have my daughter and granddaughter in town for my wife’s birthday, which is very special. So we’re excited. We have a lot of good stuff planned.
Wendy McConnell: Lots of family and making memories and all of that good stuff.
Eric Blake: Absolutely. And our grandbaby is saying words now where I’m thinking, “Where did that come from?” We are at that stage of wondering how she even knows how to say some of these things.
Wendy McConnell: Watch your language, Eric.
Eric Blake: Yes, very much. Actually, I was watching the Cowboys game Sunday, and I let one slip—which is not unusual with Cowboys games.
Wendy McConnell: That was a very good game. I watched that too.
Eric Blake: It was exciting. “Good” might be questionable… there were a lot of mistakes and penalties. But hey, the Cowboys got the win, so we will take it.
Strategy #1: Have a Plan
Eric Blake: So today we are going to start with Strategy One. I want to focus specifically on having a plan. This is first because it sets the foundation for everything else we are going to talk about in this series. Your portfolio or investment strategy is not the plan. Think of it this way: your plan establishes your point A—where you are today—and your point B—where you want to go. That is your roadmap.
Eric Blake: Your portfolio, on the other hand, is simply the vehicle—the automobile, the airplane, whatever you want to compare it to—that gets you from point A to point B. But without that plan, even the best vehicle is not going to have any direction.
Wendy McConnell: I guess, speaking for myself, I did not put a lot of thought into it. I just thought you save this money, you save this money, and then when you retire you just draw from the money. But no—we can invest that, and that is why we have the different buckets. I’m sure you will get to that at some point in this series.
Eric Blake: That is a perfect example of why this is such an important topic. Again, it always starts with the financial plan. But before we talk about the plan, I think it is important to step back and understand the retirement environment we are planning for today. Because it looks so much different than it did for our parents and grandparents.
Eric Blake: And when you combine that with the Great Wealth Transfer, we know women are going to be inheriting and managing more wealth than ever before. Here is something many people overlook: investing in retirement is completely different from investing for retirement.
Eric Blake: You think about the last 30 or 40 years—most people have been in accumulation mode. You are working, saving, building your nest egg. Or maybe you received an inheritance, life insurance proceeds, a divorce settlement—whatever it might be. Suddenly you find yourself in a new position: you need to turn that nest egg into a paycheck. That changes everything.
Understanding How Retirement Has Changed
Eric Blake: The concepts, strategies, and even the logic behind how you invest are completely different once you are retired. It is no longer just about growing your assets. It is about creating sustainable income, managing volatility, protecting against inflation, and ultimately making sure your money lasts as long as you need it—and hopefully longer.
Eric Blake: We always like to joke that on the day you die, you want to spend the very last dollar. If we knew when that day would be, the equation would be a lot easier. But we don’t.
Wendy McConnell: Exactly. I’d rather have a little leftover than not enough.
Eric Blake: Yes. People tell me, “I want to spend every single bit of money I have.” And I say, “Okay, tell me the day you are going to die, and I’ll plan that for you.”
Wendy McConnell: Yeah.
Eric Blake: Back in the 1980s and 1990s, retirement looked a lot simpler. Many people had pensions. Markets were strong. Healthcare was much more affordable. And Social Security felt more secure. I’ve mentioned this in other episodes: 1983 was the last major revamp of the Social Security system.
Eric Blake: That is when they extended the retirement age to 67, which it is today. So, similar to today, Social Security was facing funding issues, and that increase in full retirement age was part of the solution.
Eric Blake: But back then, interest rates were high. Government bonds might pay 8–9%. You could put your money in bonds and still have enough left over after income to keep up with inflation.
Eric Blake: Today, that world is gone. Most people don’t have pensions anymore. Bond markets and interest rates have been extremely volatile. Since 2000 alone, we’ve had four major bear markets. Inflation has been crazy—we recently saw the highest levels in 40-plus years. Healthcare costs worry everyone. And Social Security is once again under pressure.
Eric Blake: Retirement today requires much more intention. You cannot put it on autopilot. It simply does not work that way.
The Great Wealth Transfer and Why It Matters
Eric Blake: Another major factor is something we talked about back in Episode 50: the Great Wealth Transfer. I shared my perspective on why it is such a big deal—especially for women.
Eric Blake: Trillions of dollars are going to be inherited or generated by women over the next few years. In many cases, it will be the first time they are managing this level of wealth on their own—whether due to the loss of a spouse, divorce, or selling a business.
Eric Blake: For example, in Episode 72 we talked with Renita Wolf about selling a business. That’s one huge way wealth will be created. But the challenge is that most financial experience has been built around saving during the accumulation years—not managing wealth for income during retirement.
Eric Blake: Think about it: you spend two-thirds of your life saving for retirement and only one-third living in retirement. But that last third goes against everything you have learned up to that point.
Wendy McConnell: Yeah—and there is such a fear because you think, “There’s no more. This is it.”
Eric Blake: Exactly. We all love the idea of financial independence or “work optional,” but retirement is not always optional. Retirement can be forced by a health issue or job loss or other circumstances you didn’t choose. So you have to be prepared for when the time comes, not just when you want it to come.
Beginning the Planning Process: Start With Values
Eric Blake: So let’s talk about how we start building this roadmap—this plan. Interestingly, we do not begin with anything financial. We begin with your values.
Eric Blake: If you want to live the retirement you choose, it goes far beyond the money. We want to think about your purpose—what gives meaning to your life. Those same principles should apply to your finances.
Eric Blake: We start with a couple of questions:
What is important about money to you?
Why is money important to you?
Eric Blake: Money is just the tool. It is the resource that allows you to accomplish what truly matters.
Wendy McConnell: Okay, so would those be different answers or the same answer?
Eric Blake: They could lead to the same place, but they are framed differently. For some people, “What is important about money?” is harder to answer. But it still gets you thinking—why do you work, save, plan, invest?
Eric Blake: Is it because money brings freedom? Because you want to spend time with family? Travel? Give generously? Support loved ones? Create impact?
Eric Blake: Those values become the foundation of your financial plan.
Digging Deeper Into Values
Eric Blake: I do a lot of research and talk to other financial advisors about the questions they ask clients. We can always improve the conversation. But these two questions are incredibly effective: What is important about money to you? Why is money important?
Wendy McConnell: For example, mine would be security. I just do not want to worry, “Am I going to have enough money?”
Eric Blake: It could be. But I’d also ask, “Why is security important to you?” Sometimes the first answer is surface-level, and the deeper meaning is underneath it. You want to uncover those three to five core values.
Eric Blake: Sometimes your thinking goes back to childhood, or the experiences that shaped how you view money. If you hit a difficult financial moment—market volatility, unexpected expenses—you might react based on deep subconscious patterns. So we dig in, not to be intrusive, but to understand what truly matters.
Wendy McConnell: Something to think about.
Eric Blake: Absolutely.
Connecting Your Values to Your Financial Life
Eric Blake: Once we know your values, we begin connecting them to the financial components of your plan. When we walk through the Simply Retirement Roadmap process with a new prospective client, we begin discussing the financial pieces of the puzzle.
Eric Blake: We look at questions like:
How much are you going to need in retirement?Not just monthly expenses, but lifestyle goals—travel, hobbies, grandkids, experiences, and the things that give your life meaning.
What is your strategy for Social Security?When do you think you want to claim? What are you eligible for?Many of our clients or prospective clients come to us after losing a husband—through divorce or widowhood—so understanding eligibility is critical.Then we explore potential claiming strategies to help you maximize your lifetime income.
Healthcare planning.This is a major component, especially if you need to retire before age 65—before Medicare eligibility. What will bridging that gap cost?And we also look at long-term care and extended healthcare planning.
Your financial resources.How much do you have in investment and retirement assets?
Eric Blake: I always talk about the retirement income puzzle. You start putting the pieces together, and the picture of your retirement becomes much clearer.
Including Other Personal and Legacy Goals
Eric Blake: Most people have goals beyond Simply Retirement. You might want to:
Help fund your grandchildren’s education
Provide meaningful gifts or family support
Leave a legacy
Create charitable impact through giving or planned gifts
Eric Blake: Those goals matter. They influence how we design your plan, how we plan your income, and how we structure your investments.
Eric Blake: As we work through these questions—your values, your goals, your resources—your roadmap begins to take shape. We identify your point A, where you are today. We clarify what matters, what worries you, and what you want your future to look like.
Wendy McConnell: Worrying is definitely one of those things that comes up a lot.
Eric Blake: Absolutely. Worry comes up almost every time we ask, “What is important to you?” or “What concerns you?”And when we talk about digging deeper, that answer—What worries you?—is one of the most important.
Defining Point B: What You Want Retirement to Look Like
Eric Blake: Once we know point A, we move to point B. When do you want to retire? What do you want your retirement to look like? What other goals do you want to achieve?
Eric Blake: Then—and only then—we get to the portfolio.
Your Investments Are the Vehicle, Not the Plan
Eric Blake: The investments are not the plan. They are the vehicle. They take you from point A to point B.Without the roadmap, the investments are just an engine with no direction.
Eric Blake: This is where a lot of worry comes from. People stare at statements and watch their balances go up or down. And if that is all you are focused on, the worry gets louder.
Eric Blake: But when you have a plan, you can say:“We prepared for this. We know how we will navigate this.”And that changes everything.
Eric Blake: Over the next few episodes, we will peel back the layers of this process—how investing in retirement works, how to deal with market volatility and inflation, how to grow your income, and so much more.
Strategy #1 Recap
Eric Blake: So to recap today’s conversation:
We launched our series on the Seven Essential Strategies for Successful Investing in Retirement.
We looked at how retirement has changed, comparing the stability of pensions and high bond yields of the past to today’s complex environment.
We revisited the Great Wealth Transfer and why trillions of dollars shifting to women will reshape financial decision-making—often for women who are managing wealth solo for the first time.
And we focused on Strategy #1: Have a Plan, because it is the foundation for everything.It becomes the roadmap. Everything else builds on top of it. Without a clear plan, the other strategies don’t have direction.
What’s Coming Next in the Series
Eric Blake: In the coming episodes, we will cover the remaining strategies in three focused conversations:
Next Episode – Strategies #2 and #3
Understanding the true objective of a retirement portfolio
Reframing risk in retirement—one of the most misunderstood concepts
Following Episode – Strategies #4 and #5
The role of stocks in retirement
The power of dividend growth
Final Episode – Strategies #6 and #7
The role taxes play in retirement—and how to manage them
And finally: Should I work with a financial advisor?
Eric Blake: Each strategy builds on the foundation we set today. Together, they form a roadmap for living your retirement years with clarity and confidence.
Call to Action
Eric Blake: If you are looking for a personalized retirement plan that helps you make smart decisions around income, investments, and taxes, feel free to visit GetMySimplyRetirementRoadmap.com to schedule a phone call with our team.
Eric Blake: For all the links and resources mentioned, you can visit TheSimplyRetirementPodcast.com. Don’t forget to like, follow, and share the show.
And until next time, please remember: retirement is not the end of the road—it is the start of a new journey.
Content here is for illustrative purposes and general information only. It is not legal, tax, or individualized financial advice; nor is it a recommendation to buy, sell, or hold any specific security, or engage in any specific trading strategy.
All investing involves risk including loss of principal. Results will vary. Past performance is no indication of future results or success. Market conditions change continuously.
Information here is provided, in part, by third-party sources. These sources are generally deemed to be reliable; however, neither Blake Wealth Management nor RFG Advisory guarantee the accuracy of third-party sources. The views expressed here are those of Blake Wealth Management. They do not necessarily represent those of RFG Advisory, their employees, or their clients.
This commentary should not be regarded as a description of advisory services provided by Blake Wealth Management or RFG Advisory, or performance returns of any client. The views reflected in the commentary are subject to change at any time without notice.