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How much money do you need to retire? $1 million? $2 million? $5 million?
According to financial advisor Ben Batiste, that may be the wrong question.
In this episode of Money and You, Michelle talks with Ben, founder of Crestmark Wealth Group, about a different way to think about retirement planning—one that begins not with a target account balance or a particular age, but with the income you will actually need to support your life.
Ben’s perspective comes from both professional expertise and a his personal history with money.
Growing up with significant financial instability and periods of homelessness, Ben entered the military at 18 with very little financial education. When he finally began earning his own money, he ran up against his lack of financial knowledge and his own relationship with money.
As he explains, when you’ve gone without something for a long time, finally having money can create a powerful desire to give yourself everything you didn’t have before—even when doing so works against your future.
That experience eventually helped shape the kind of financial advisor Ben wanted to become: one who begins with education and planning rather than simply selling a financial product.
Michelle and Ben explore how our history with money influences our decisions, what consumers should look for when choosing a financial professional, and why a successful retirement requires much more than watching an investment account grow.
In This Episode, You’ll Learn
- 10:20 — When you finally have what you never had: Why deprivation can sometimes lead to spending rather than saving
- 12:08 — How do you know whom to trust with your money? What Ben believes consumers should look for when talking with financial professionals
- 13:08 — Don’t blindly believe the first financial advice you hear: Why education and asking better questions matter
- 15:31 — Product or financial plan? One important warning sign when interviewing a financial professional
- 17:16 — Why financial planning is like going to a doctor: The importance of understanding the problem before prescribing a solution 21:37 — How much do you really need to retire? Why Ben believes retirement should begin with income rather than a target asset balance
- 24:04 — Taxes, inflation and future income: Why retirement planning needs to look beyond investment growth
- 26:52 — Where will your retirement income come from? Looking at the entire financial picture, including investments, real estate, businesses, retirement accounts and Social Security
- 28:50 — When should you take Social Security? Why the answer depends on your individual situation rather than simply your age
- 31:05 — Why financial planning can feel scary: The emotions that can make us seek quick answers instead of doing deeper planning
- 38:00 — Some of the most expensive retirement mistakes: Sequence-of-returns risk, Social Security timing, taxes, healthcare costs and choosing products without a plan
Retirement Isn’t an Age—or a Magic Number
One of Ben’s most important messages is surprisingly simple:
Retirement is about income.
People often focus on accumulating a particular amount of money and assume that once their portfolio reaches that number, they’ll be ready to retire.
But an account balance alone doesn’t tell you whether you can support your lifestyle for the rest of your life. Ben approaches retirement planning by reverse engineering it.
How much income will you actually need?
Where will that income come from?
How will inflation affect what you’ll need in the future?
What role will Social Security play?
How much of your retirement money will be taxable?
Are required distributions going to affect your tax situation later?
What other assets or income sources do you have?
Once those questions are considered, you can begin determining what assets and strategies are needed to produce the income you’re trying to create.
Don’t Start With the Product
Ben also offers an important piece of advice for anyone interviewing a financial professional.
Pay attention to whether the conversation begins with you—or with a product. The plan should determine which tools are appropriate—not the other way around.
Your Relationship With Money Comes With You
Ben’s childhood also brings another important dimension to this conversation.
Growing up without financial stability didn’t automatically turn him into a saver when he began earning money. Quite the opposite.
It’s an important reminder that financial behavior isn’t driven simply by what we know.
Our history, emotions, fears and experiences with money come with us.
Retirement Requires More Than Saving
Building assets matters, but Ben identifies several issues that can have a major impact on retirement if they aren’t considered ahead of time.
These include:
- Sequence-of-returns risk
- Social Security timing
- Taxes
- Required minimum distributions
- Healthcare costs
- Buying products without a plan
The earlier you begin thinking about these issues, the more choices you may have. They are explained in the podcast in more detail.
It’s Not Necessarily Too Late
One of the most hopeful parts of the conversation comes full circle to Ben’s childhood.
His mother, whose financial struggles contributed to the instability Ben experienced growing up, is now preparing to retire.
She doesn’t have the large investment portfolio people often assume is necessary. But by focusing on the income she will need and creating a plan around the resources available to her, Ben says she is on track to retire at 70 with enough income to support herself.
About Ben Batiste
Ben Batiste is the founder of Crestmark Wealth Group, where he brings investments, taxes, retirement and estate planning together into a coordinated strategy for professionals, business owners, military families and pre-retirees.
A former Marine and Army veteran with four overseas deployments, Ben moved into financial services with a commitment to making financial planning more transparent and understandable.
His philosophy is that financial planning should be understood, not blindly trusted, and much of his work focuses on educating people so they can make informed decisions with greater confidence.
Ben also shares financial education through his YouTube channel, Retirement Planning Made Simple.
Resources & Links
Connect with Ben Batiste
Crestmark Wealth Group- https://www.crestmarkwealth.com/ cressmarkwealth.com/podcast
YouTube: Retirement Planning Made Simple
Ben can also be found on LinkedIn and Instagram.
Ben has created a resource page for listeners that includes a financial quiz, educational resources, an eBook and newsletter.
Connect with Michelle
Limit Free Life® — limitfreelife.com Email: team@limitfreelife.com
Have a money, career, or business question you’ve been avoiding? Visit Limit Free Life to connect with Michelle and explore free resources.
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