Common Sense Financial Podcast: Mindset & Growth

There is a key mindset shift that many people fail to make when they retire and it can cost them thousands of dollars from their investment portfolio. Hear about Hypothetical Helen and how her plan to pay off her mortgage with money from her 401k once she retires actually puts her further away from her goals, and what the most optimal solution for cash flow in retirement is.   Retirement in its purest form is simply the creation of passive income sources used to support your cash flow requirements. Everything revolves around your cash flow in retirement, yet many people lose sight of this fact and overcomplicate their investment strategy. Take the example of Helen. Helen was to have $40,000 per year to supplement her Social Security income. She has a million dollars in a 401k and has a mortgage of $200,000 with a payment of $14,400 annually, and her home is valued at $500,000. Her plan is to eliminate her mortgage with funds from her 401k as well as make some renovation while living off a 4% draw each year f