Shawn Maloney discusses his journey into the financial services industry

Listen to the interview on the Business Innovators Radio Network: Interview with Shawn Maloney Founder & CEO of Retire Wise 

Mike Saunders welcomes Shawn Maloney, founder and CEO of RetireWise. Shawn shares his journey into the financial services industry, which began in the eighth grade with a stock market game that sparked his passion for finance. After pursuing a traditional education and working with various advisory firms, Shawn took some time away from the industry before returning with a renewed focus. He emphasizes the importance of independence in serving clients and reflects on the lessons learned from market fluctuations over the years.

When it comes to retirement planning, a one-size-fits-all approach simply does not work. The complexities of individual financial situations, personal life goals, and the unpredictable nature of markets necessitate a tailored strategy. A well-structured retirement plan should not only focus on accumulating wealth but also on effectively managing and withdrawing those funds during retirement—this is known as the drawdown phase.

The drawdown phase is critical as it marks the transition from saving for retirement to spending those savings. Many individuals mistakenly believe that once they retire, they can simply withdraw a set percentage of their savings each year, often relying on oversimplified rules like the 4% rule. However, this approach can be misleading and may not account for various factors that can significantly impact a retiree’s financial health.

1. Market Volatility: The 4% rule assumes a stable market environment, which is rarely the case. Market fluctuations can affect the value of retirement accounts, and withdrawing a fixed percentage during a downturn can deplete funds more quickly than anticipated.
2. Inflation: The cost of living tends to rise over time, and a fixed withdrawal strategy may not keep pace with inflation. This can erode purchasing power, leaving retirees with less money to cover essential expenses as time goes on.
3. Longevity Risk: With advancements in healthcare and a focus on healthier lifestyles, people are living longer. This means that retirement savings need to last longer than ever before, making it essential to have a plan that considers how long funds will need to last.
4. Healthcare Costs: As retirees age, healthcare expenses often increase. A personalized plan should account for these rising costs, which can vary significantly from one individual to another.

A personalized retirement plan takes into account the unique circumstances of each individual or family. Here are some key components that should be included:

• Risk Assessment: Understanding an individual’s risk tolerance is crucial. A personalized plan should evaluate the various risks associated with retirement, such as market risk, inflation risk, and healthcare costs, and develop strategies to mitigate them.
• Phased Approach: Retirement can be divided into different phases—often referred to as the “retirement smile.” The “go-go years” are when retirees are most active and may have higher expenses, while the “slow-go years” and “no-go years” may require different financial strategies. A personalized plan should allocate resources accordingly to ensure that funds are available when needed.
• Tax Efficiency: A well-structured drawdown plan should also consider the tax implications of withdrawals. Different accounts (e.g., traditional IRAs, Roth IRAs) have different tax treatments, and a personalized strategy can help minimize the overall tax burden throughout retirement.
• Ongoing Adjustments: Retirement planning is not a one-time event. Regular reviews and adjustments are necessary to adapt to changing circumstances, market conditions, and life events. A personalized plan should include a schedule for periodic check-ins to ensure that the strategy remains aligned with the retiree’s goals.

Shawn shared: “We really just feel we do a service by helping people, what we say, retire happy, with that right wisdom, right knowledge, so they can enjoy their retirement”

About Shawn Maloney

Shawn Maloney, is a certified retirement planner, fiduciary, national bestselling author and the owner and CEO of Retire Wise, LLC. With over twenty years of experience and a passion for helping people be ready for retirement and retire happy, He has dedicated my career to ensuring that individuals are equipped with the education and tools they need to grow and protect their retirement savings. It is also just not all about the financial side and he helps and coaches people on the non-financial aspects of retirement as well, to get a more complete plan. Utilizing his transparent and comprehensive approach to planning, known as the “Retire Happy FrameworkTM,” Shawn helps to provide their clients with peace of mind about their future. In addition to helping people with retirement planning, he finds solace in spending time with my family, giving back to my community and church. Join him on this journey towards a fulfilling retirement and let’s make the most out of every day!

Learn more: http://www.retirewisepro.com/