Episode 6 - Recalculating
You can’t start from where you wish you were. You have to start where you are. In this episode, Denise takes your blue dot from the Retirement Checkpoint and puts it into the GPS. Whether you’re behind, on track, or ahead, it’s time to recalculate—adjusting how much you save, how long you work, how much risk you take, or even what you want your money to do. Because recalculating doesn’t mean you took a wrong turn. It simply means finding the best route forward from where you are today.
Episode Quotes
· “You don’t build the route from where you wish you were. You build it from where you are.”
· “Being behind isn’t a diagnosis. It’s information. Your dot is simply telling you: this route needs to change.”
· “If your retirement plan only works if you earn 15% a year, you don’t have an investment strategy. You have a hope strategy.”
· “If you’re ahead of schedule, you don’t necessarily need to keep driving 85 miles an hour just because you can.”
· “The goal of investing isn’t to die with the highest possible portfolio balance. The goal is to use your money to create the life you want.”
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AI Prompts – Behind - SHOW ME THE MONEY: WHAT CAN I REALLY SAVE?
“I’m [AGE] years old and earn [$X] per year before taxes. My monthly take-home pay is approximately [$X], and I currently save [$X] per month toward retirement.
Here is the last three months of my spending: [PASTE TRANSACTIONS OR MONTHLY EXPENSES].
Organize my spending into fixed expenses, essential variable expenses, discretionary spending, and expenses that could potentially be reduced.
Do not focus on tiny purchases like coffee. Look for the big, meaningful opportunities that could actually change my retirement savings.
Identify the five largest realistic opportunities to free up money for retirement and estimate how much each could save me per month and per year.
Then calculate three realistic monthly retirement savings targets for me:
Comfortable: an amount I could save without making major lifestyle changes.
Stretch: an amount that would require some meaningful changes but still feels sustainable.
Aggressive: an amount that would require significant changes because catching up for retirement is a priority.
For each target, show me exactly what changes I would need to make to my current spending to get there.
Finally, tell me how much to automatically set aside from each paycheck to reach each target.
Do not recommend specific investments.”
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AI Prompts – On Track - AM I TAKING THE RIGHT AMOUNT OF RISK?
“I’m [AGE], plan to retire at [AGE], and appear to be on track for retirement. I have approximately [$X] invested.
Here is my current asset allocation:
Stocks: [%]
Bonds: [%]
Cash: [%]
Other investments: [%]
Help me understand whether the amount of risk I’m taking is consistent with my time horizon, retirement date and ability to withstand a market decline.
Show me approximately what could happen to my portfolio if stocks fell 10%, 20% or 30%, using clearly stated assumptions for how the other parts of my portfolio might behave.
Then help me think through these questions:
· If markets fell sharply tomorrow, would I have enough time to recover?
· If I were already retired, would I have enough cash or lower-volatility assets to avoid having to sell investments during a downturn?
· Am I taking more risk than I need to reach my retirement goal—or too little risk to reasonably support it?
· What questions should I ask my financial advisor about my asset allocation?
Do not recommend specific securities or tell me to make trades. Instead, help me understand the trade-offs and identify what I should review with a qualified financial advisor.”
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AI Prompts – Ahead - WHAT IS THIS MONEY ACTUALLY FOR?
“I’m [AGE] and appear to be ahead of my retirement savings goal. I have approximately [$X] invested, expect [$X] from Social Security and/or a pension, and currently spend about [$X] per year.
I’ve spent years focused on saving and accumulating money. Now I want to think about what I actually want that money to do for me.
Ask me questions, one at a time, to help me identify what matters most to me in the next chapter of my life.
Explore things like:
retiring earlier or working less
travel and experiences
spending more comfortably today
helping children or grandchildren
buying or maintaining a second home
charitable giving
leaving an inheritance
creating financial security and peace of mind
anything else I tell you is important to me
Then help me divide my money into three categories:
Money I need — to fund my lifestyle and protect my financial security.
Money I want — to enjoy my life and do the things that matter to me.
Money I want to leave — for family, charity or a legacy.
Based on my answers, summarize my top financial priorities and identify where I may have choices I haven't considered.
Do not recommend specific investments. The goal is to help me answer one question:
What is this money actually for?”
