From a Vegas Magic Show to Market Logic: Finding Your Financial Balance

Retirement Planning Is Really Cash Flow Planning

Retirement often feels like a finish line, but in reality it is the start of a new phase that requires a different kind of financial thinking. In this episode of Retire Well, Josh Bretl and Mark Elliott focus on the practical realities retirees face, especially inflation, portfolio risk, and the importance of aligning financial decisions with real life goals.

Josh emphasizes a principle he has followed throughout his career. Retirement planning is nothing more than cash flow planning. The question is not just how much you have saved, but whether your income sources can reliably support your lifestyle over a retirement that may last 20 to 30 years.

Why Inflation Deserves More Attention Than It Gets

Many retirees underestimate how much inflation can impact their purchasing power. Everyday expenses like food, travel, and especially healthcare tend to rise steadily over time. Even modest inflation compounds over decades, which means today’s comfortable budget may feel very different years down the road.

Josh and Mark discuss how cost of living adjustments for Social Security are based on metrics that do not reflect retiree spending patterns, particularly healthcare. That gap can create pressure on retirement income unless it is addressed proactively in the planning process.

Understanding Portfolio Risk Before It Becomes a Problem

One of the most common surprises Josh sees when meeting with retirees is how much risk they are actually taking. After years of strong market performance, many portfolios feel safe simply because they have been growing. That sense of comfort can be misleading.

Josh introduces the concept of a portfolio risk score, which provides a measurable way to understand how volatile an investment mix truly is. Unlike vague labels like conservative or aggressive, a numerical score creates clarity and helps retirees align their investments with their comfort level and income needs.

• Why retirees often take more risk than they realize
• How risk feels different once you stop receiving a paycheck
• Why losses matter more when you are withdrawing income

The Rule of 100 as a Starting Point, Not a Rulebook

The rule of 100 is often used as a general guideline for asset allocation. Subtract your age from 100 to estimate how much risk you might take. Josh explains why this rule can be helpful as a starting point, but dangerous if followed blindly.

Every retiree’s situation is different. Income needs, pensions, Social Security timing, tax considerations, and personal comfort with risk all matter. Two people of the same age may need entirely different strategies, even if their portfolios look similar on paper.