Why Income Planning, and Not Gambling, Wins in Retirement

Retirement isn’t just about the numbers. It’s about confidence, clarity, and the ability to enjoy life without constantly worrying about whether your money will last. In this episode of *The Own Your Retirement Show*, Josh Bretl, president of FSR Wealth Strategies, and co-host Mark Elliott tackle two of the most critical pieces of the retirement puzzle: interest rates and income planning. Along the way, they keep things relatable with stories, humor, and insights that make complicated financial topics easier to understand.

When Blackjack Meets Retirement

Josh kicks off the show with a lighthearted story about his son Alex, who discovered the thrill of blackjack at a Chicago music festival. For Alex, it wasn’t the music that made the biggest impression—it was the excitement of trading chips, junk, and even a Mr. Potato Head at the blackjack table. The story is funny, but it also serves as a powerful reminder. Just as gambling gives you a quick rush followed by uncertainty, investing without a plan can leave retirees chasing short-term wins instead of building long-term stability.

Why Interest Rates Matter in Retirement

Interest rates aren’t just headlines in the news. They directly affect how retirees earn, save, and borrow. When rates go down, borrowing becomes cheaper for things like mortgages or car loans, but savers earn less on safe money like CDs and bonds. When rates rise, the opposite is true—better returns for savers, but higher borrowing costs. Josh explains how these shifts influence portfolios and why retirees need to be strategic about locking in rates that fit their goals.

The Federal Reserve recently lowered rates for the first time in months, and more cuts may follow. For retirees, that means now may be the time to evaluate savings vehicles and consider whether it makes sense to lock in favorable rates before they disappear.

The Challenge of Transitioning From Saving to Spending

For decades, most people build their lives around working and saving. Paychecks come in, bills go out, and any extra gets tucked away for retirement. But once work stops, the financial script flips. Suddenly, retirees have to draw down the money they’ve accumulated, while also relying on government benefits like Social Security and Medicare. This psychological shift—from earning to spending—can feel unsettling and even scary.

Josh stresses that understanding spending habits is one of the most important steps retirees can take. Many people don’t know what they truly spend each month, which makes planning difficult. By getting a clear picture of expenses, retirees can better align their income sources with their lifestyle goals.

Why Guaranteed Income Boosts Happiness

Research shows that retirees who have steady, guaranteed income are often happier and more confident in retirement. Social Security, pensions, and certain annuities provide that type of income—the kind that can’t be turned off. Josh explains how this “income floor” helps cover essentials, freeing retirees to use other funds for travel, hobbies, and the experiences that make retirement meaningful.

Beyond Rules of Thumb

You’ve probably heard of the “4% rule” or the “rule of 100.” While these can be useful starting points, Josh cautions against treating them as universal truths. Retirement planning is not one-size-fits-all. Every family’s situation is unique, and applying blanket rules can lead to unnecessary risk or missed opportunities.

The Five Pillars of the Own Your Retirement Process

Instead of cookie-cutter rules, Josh and the FSR team focus on what they call the Own Your Retirement planning process. This approach takes into account five key areas:

• Income – Ensuring you have reliable streams to cover essentials.
• Investments – Structuring portfolios to balance growth with protection.
• Taxes – Minimizing the drag taxes can place on retirement savings.
• Healthcare – Planning for medical costs and long-term care needs.
• Legacy – Aligning your wealth with your wishes for family or charity.

Listener mailbag questions in this episode also highlight how these five pillars overlap. From choosing safe places to store savings, to deciding whether life insurance is still necessary in retirement, Josh shows how every financial decision touches multiple parts of the plan.