I recently finished a book titled “WEALTH UNBROKEN.” In one of the chapters they make an analogy between financial security and climbing Mt. Everest. ... Here is what it says…
When thinking of a person’s financial lifecycle, I picture Mount Everest.
If you’re a mountain climber, you know that there are three clear legs to the journey: the ascent, the summit, and the descent.
The ascent is the climb and the hard work. It’s the blood, sweat, and tears.
The summit is the culmination of that hard work, the accomplishment, where you firmly plant your flag as a rite of passage.
And the descent — which one would think would be the easy part, just the climb down — is the rumination of the accomplishment, the enjoyment.
But, of all the deaths that have occurred on Mount Everest, over 80 percent have occurred upon descent in an area called the “death zone.” This death zone is extremely devoid of oxygen. Arriving at the summit and descending later in the day, along with excessive fatigue, are all components most associated with this statistic. These climbers had enough juice to get up to the top, but not enough to get back to the bottom.
Our financial life cycle follows this same trajectory, and retirement is filled with the same hidden dangers as descending Mt. Everest. Climbing a mountain is really a near perfect analogy of our financial life.
Ascent: The long, uphill battle of wealth accumulation. It is working, acquiring, saving and building for your future self in retirement and your family’s legacy, working towards a major lifetime milestone.
Summit: That special moment when your entire adult life, as you have known it, changes because you have reached the peak, ending the accumulation phase of life, and are about to begin the second phase of your financial life cycle. As you transition from exchanging your time and energy to earn income and build wealth to placing that accumulated wealth in your place to now work for you, you breathe a sigh of relief: you’ve reached Retirement. Your accumulated wealth now steps in and takes over, working for you in your place, for the rest of your life.
Descent: The second phase of our financial life cycle after reaching retirement is the distribution phase — where we must put our exit strategy to work for us — navigating and managing our money during our retirement years.
Just like Everest, most Americans fail, financially, upon the descent. They have not properly developed a sustainable exit strategy, a distribution strategy that will see them through their retirement years. Most are unprepared to maintain their lifestyle throughout retirement and will not reach the end like they wish to. Frankly, most Americans are ill-prepared for retirement.
I specialize in helping folks navigate their financial descent, by making sure their retirement nest egg last as long as they live! If you’re interested in making sure you don’t run out of money during retirement, please give me a call. Retire HAPPY…….. Retire with CB FINANCIAL.
Book reference: Wealth Unbroken — Growing wealth uninterrupted by Market Crashes, taxes and even death, by Rebecca Wasler