Feeling Overwhelmed? Jason Taylor Discusses A Step By Step Retirement Plan

Retirement planning can feel like a mental pileup: numbers you do not know, decisions you do not want to make, and a deadline that somehow keeps moving. We tackle the question people ask all the time: how do I plan for retirement without feeling overwhelmed? Our answer is simple but powerful: stop trying to do everything at once, and start building a plan with small monthly steps that match real life.

We talk through what actually changes as you get closer to retirement, including why many people are working longer not because they have to, but because they are healthier and enjoy their work. From there, we get practical about the first step that unlocks the rest: defining what you want your daily retirement life to look like. Travel, housing, downsizing, and even the small joys like having a companion pet all shape the true cost of your retirement lifestyle and the retirement income you will need.

We also dig into the factors people often underestimate: the financial strain of continuing to support adult children, and the way healthcare costs tend to rise as you age even with insurance. You will hear simple tactics to reduce stress right now, like running an annual audit of subscriptions and automatic payments, building an emergency fund, and focusing on your numbers instead of comparing yourself to friends and family. If you are behind, we discuss realistic ways to close gaps, including consulting or part-time work.

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Transcript

Welcome To My Pocket FP

SPEAKER_00 0:03

Welcome to My Pocket FP, the podcast where your wallet finally meets its financial planner and they actually get along. Join your host, Jason Taylor, certified financial planner, money sensei, and your guide to financial freedom. Whether you're planning for retirement or just trying to figure out where all your money went last weekend, we've got you covered. Get ready to take control of your financial life with smart tips, surprising insights, and yes, an app that fits right in your pocket. This is My Pocket FP, because your future deserves more than guesswork.

Why Retirement Feels Overwhelming

SPEAKER_02 0:46

Retirement planning feels intimidating for so many people, but it becomes far more manageable when you break it into simple, doable steps. Welcome back, everyone. I'm Julie Schwenzer, co-host and producer with Jason Taylor, our certified financial planner and the creator of My Pocket FP. Jason, we're excited for this one and to learn from you because it's a question we hear constantly. Today we are asking: can I plan for retirement without feeling overwhelmed? What are your thoughts?

SPEAKER_01 1:16

Thank you, Julie. Uh yes, I think as they always say, knowledge is power. So the more information you can gather during that time, then the more stress will take off of you if you, you know, kind of know more about your situation, know more about what was available to you, and things like that as you get closer to retirement. The other mistake I see is people try to do it all at once, which is very difficult where they you know they just pick one week and like, okay, I'm gonna figure out retirement now. And it's a kind of a moving target, which a lot of people don't understand as well, which can make it uh a little difficult. And then, you know, our program is actually designed to do the planning over a year. So we look at different aspects of retirement every month, how to change your insurances, your Medicare, things like that, um, you know, how to adjust your budget um, you know, on your new fixed income, uh, how to adjust your investments? It's kind of a generally eight to 12 month period that we plan this out instead of like an all-at-on type of situation.

Working Longer And Why

SPEAKER_02 2:14

And how have things possibly changed with your clients over the years, um, with the retirement age being pushed back for you know a lot of people, as well as changes in their career? Have you noticed a shift in retirement age and how they plan overall?

SPEAKER_01 2:32

More than anything, I've noticed that people are working longer, not because they have to, and not because retirement age is you know changed or um just because that people are healthier and they really love what they do, so they don't want to stop.

SPEAKER_02 2:49

Yeah, and what do you think overall is a first step someone should take? I mean, you did touch on this, but like when retirement feels too big to think about, what's a f like the first step somebody could take to like get a plan into action?

Picture Your Ideal Retirement Life

SPEAKER_01 3:03

I think to really uh identify what they see as what they want for retirement, what they want their daily life to look like, you know, how much travel they want to do, where they want to live. Because a lot of people, you know, they downsize or they you know shift their living situation. So it's kind of good to just start there on what your ideal retirement picture looks like.

Adult Kids And Financial Boundaries

SPEAKER_02 3:29

And what about the adults that may have adult kids that they're still helping out? How do you factor that in their planning for retirement?

SPEAKER_01 3:38

That is a a really big struggle um to try to get them to focus more on themselves and not their adult children. I have seen a lot of people actually have to work longer because of that as well, because they just can't stop helping their adult children. I have given them books. Dave Ramsey's, I think his daughter has some books on you know how to cut the cords of the kids and how you're really hurting them more than helping them when you continue to give them money as they they get older.

SPEAKER_02 4:06

And then, you know, you were brought up some great tips about looking at insurance and you know what they may need per month. Do you find that people might forget or leave out things that they should be keeping on their radar for, you know, things that are gonna be mandatory even as they retire?

Health Costs That Surprise Retirees

SPEAKER_01 4:26

As a young uh financial planner, uh, this was brought up to one by one of my clients because they did a financial plan for them. And he said, you know, we really you know enjoyed the plan you did and everything, but you know, after you know, three years into retirement, there's one thing you might want to point out to your clients, and that is uh health. And the cost of going to the doctor goes up significantly as you get older. And that's something that was you know not represented in the plan as much, which we do now. Um, we increase the amount of health costs um in retirement. Even with insurance, there's a lot of out-of-pocket costs um that can catch a lot of retirement people out of, you know, uh a little off guard.

SPEAKER_02 5:07

Absolutely. I mean, some of the seniors in our extended family, I almost feel like they're a science experiment because every time something goes wrong, there's another test, there's another, you know, another appointment. Uh, they everybody wants to make sure that all parts are working well and that's great. It can be a lot.

SPEAKER_01 5:23

It's oh yeah.

SPEAKER_02 5:25

Appointments.

Travel Early And Keep An Emergency Fund

SPEAKER_02 5:27

And then what about the emergency fund and still the vacation fund that we just talked about? What about that for retirees? Do you think that that gets neglected too? Because you know, they still want to do some things and they still have to prepare for the worst, you know, the worst natural disaster or something that could happen to their home.

SPEAKER_01 5:46

It is hard. I tell you know, my clients to travel in their younger retirement years, you know, from 70 to 80, or even, you know, depending if they retire earlier, you know, 65 to 80. When they're still mobile, they can still, you know, participate in things to do the travel then. Um, but you always have to have that emergency account, you know, for when things come up.

Automation Audits And Subscription Drift

SPEAKER_02 6:10

And then what role does automation play in reducing stress around retirement savings? So, like if they have automatic payments going out, I know that can be a good thing to make sure that bills are being paid on time, but then sometimes things can go under the radar that maybe they don't need anymore.

SPEAKER_01 6:27

Yeah, so yeah, one of the things we you know like to do with our clients is like an annual audit on the automatic payment things coming out, um, which you know uh ironically I just did for myself. We find we have subscriptions we don't need anymore. Like I had a stamps.com account that I totally forgot I had set up you know two years ago and was able to, you know, save twenty dollars a month now. The Netflix, the Disney Plus, and all those just add up. And sometimes people stop watching them because they already watched, you know, all their favorite show on that that one channel. Um but it's good to do an annual audit on all the subscriptions, and most banks and credit cards will actually give you the list of all your automatic payments.

SPEAKER_02 7:15

Yeah, that's great. And then, you know, again, going back to retirement planning, feeling overwhelming

Stop Comparing And Know Your Numbers

SPEAKER_02 7:22

for people. How do you help clients avoid comparing their progress to others? Because it seems like at least if you start, even if it's later, at least you're starting to plan. Right. You know, you're figuring it out. How do you help clients feel better?

SPEAKER_01 7:36

I mean, it really is, you know, showing them the numbers on paper for them. Um, you do get the lot, yeah. I talked to my brother-in-law, I talked to my beautician, I talked to so-and-so, and this is what they're doing, this is what they can do, and why can they go to Europe and not me? And it is really good to just show them their numbers and know your numbers.

SPEAKER_02 7:59

And what are some small steps that people

Small Steps Plus Consulting Income

SPEAKER_02 8:01

could take right now if they did not start planning? What could they do to move forward? Is it that audit?

SPEAKER_01 8:07

Knowing the numbers, you know, knowing what fixed income you're going to have, knowing what skills you have that might still be valuable to people? Um, I know a lot of people in retirement are doing consulting. And they can cover a lot of gaps, you know, a couple thousand dollars a month just by consulting businesses or even just you know, working part-time, even.

SPEAKER_02 8:27

Then a last question, and I know you've probably had to address this a lot, and it it kind of goes with what we were talked about earlier, but how can you motivate your clients and other people to want to do something and take care of the future when retirement feels so far away?

Motivation By Pricing The Dream

SPEAKER_01 8:46

It always comes back to you know seeing it on paper. If they have a picture of what they want for retirement, they need to know what that's cost. And once you know that what they want and the current costs, you can kind of back into how much you need to save.

SPEAKER_02 9:04

Yeah, absolutely. And don't don't forget the little dog. If somebody wants a little dog when they retire, or that companion, curry companion.

SPEAKER_01 9:13

Exactly, yeah.

SPEAKER_02 9:14

Which is also good for exercise, which will lead to health issues. But uh yeah, well, uh Jason, thank you again for making this topic that feels overwhelming for so many not feel as complicated. We appreciate you.

SPEAKER_01 9:30

Thank you, Julie.

Download The App And Wrap

SPEAKER_00 9:35

Thanks for tuning in to My Pocket FP, where we believe small monthly changes can make big positive changes in your financial end game. If you're ready to level up your money game, head over to mypocketfp.com and download the app today. Your financial planner is now officially pocket sized and doesn't charge by the hour. Until next time, keep your goals high, your debt low, and your pockets smart.