Investment Planning VS. Retirement Planning

 In Ozarks Live

Investment Planning VS. Retirement Planning

What is more important, investment planning or retirement planning? What exactly are the differences??  

Both are equally important in different stages of your life, let me explain.

Investment Planning

When  investment planning, savings starts in your 20’s with your first big kid job.  Each year the gains will ‘compound’ or add on to the previous year.  An Investment Plan is also known as the growth period of your life.  Starting from age 20 to 60’s the focus is on long-term growth.  

Where to invest?

During the growth period, investing in more volatile market conditions is appropriate.  You will have a longer time period to manage through the ups and downs.  

A strategy known as dollar-cost averaging is a conservative approach that allows you to reduce your risk by easing into the market over a period of time1. With this strategy, you would invest the same amount of money each period regardless of the specific asset price, instead of investing all at once.  Over time this will lower the short-term volatility.  This investment planning method is popular with 401(k) plans.  Sometimes you will buy at a low level and sometimes it may be higher, but in the end, you will have a cost average per share.

As you age closer to 65 it’s important to start working with a professional to provide guidance with Medicare, figure out an ideal retirement date, plan for taxes, and when to start taking social security.  

We would love to be the professional who is in your corner. If you would like to have a consultation with us about your future retirement plan, click to book a call or in-person appointment.  We encourage all of our young retirees to ‘interview’ different professionals to find a good fit for their families and situation.  While the decision does not have to be permanent, it’s a decision you shouldn’t take lightly.

Also, as you near your ideal retirement age, we encourage shifting your mindset from investment planning to retirement planning.  


Retirement Planning

In the retirement period, the objective moves from growth potential to safety and security. Security of your money, help protect your money from loss, having flexibility in the future, having the ability to balance and rebalance, being able to enjoy your hard-won earnings. We look at sustainable income as a real big priority and then, of course, growth.  

In other words, though, you plan on retirement. You just don’t all of a sudden retire and then plan for things.  Planning ahead of time will pay big dividends in the future when you are voluntarily unemployed. 

Where to invest?

During the Retirement Plan period, a strategy I tend to use is age plus 5%.  Take your age, 65, and add 5%, so a 65-year-old should have 70% of their assets in a low-risk environment.  This is a conservative approach that keeps things certain, rather than a hope.  I don’t want to hope I can live 20 years in retirement. I want to be certain that I can, without running out of money.

I like to build diversified portfolios with a 3 bucket approach:  

  • A saving to spend bucket
  • A conservative, income-producing bucket
  • A moderate, aggressive bucket

For the conservative bucket I might recommend a Fixed Indexed Annuity with lifetime income options, or a lower risk mutual fund model. In the moderate bucket, I might recommend a stock portfolio or a mutual fund model tied to your personalized risk score.   In another show on Ozarks Live I discuss Income in Retirement, click here.


Don’t forget to include your big brother, the IRS, in your plan.  Not planning for the future taxes owed on your 401(k) is a downfall I see often.  Contributing to the plan for so long, watching it grow and compound outweighs the focus on what amount is taxable vs what you actually have to spend in retirement.  

In summary, planning ahead is what I am preaching if you plan to one day retire.  Throughout your earning and savings years, have a plan.  Then talk to a professional about when it’s appropriate to switch from investment planning to retirement planning.

If you have a financial question for Bruce, visit our website or give us a call at (417) 882-1800.

Catch Bruce Porter’s show Dollars & $ense Tuesdays at 3pm on KOLR’s Ozarks Live

Visit our YouTube page for more videos





Investing involves risk, including the potential loss of principal. Any references to protection benefits, safety, security or lifetime income generally refer to fixed insurance products, never securities or investment products. Insurance and annuity product guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Neither the firm nor its agents or representatives may give tax or legal advice. Individuals should consult with a qualified professional for guidance before making any purchasing decisions. Annuities are insurance products that may be subject to restrictions, surrender charges, holding periods, or early withdrawal fees which vary by carrier. Riders are generally optional and have an additional associated cost. Annuities are not bank or FDIC insured. This is a hypothetical example provided for illustrative purposes only; it does not represent a real life scenario, and should not be construed as advice designed to meet the particular needs of an individuals situation. The information and opinions in these articles are provided by third parties and have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by Advisors Excel. They are given for informational purposes only and are not a solicitation to buy or sell the products mentioned. The information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice to meet the particular needs of an individual’s situation. Any media logos and or trademarks contained herein are the property of their respective owners and are not an endorsement by those owners of our firm or this presentation. The Resource Center is an independent financial services firm that utilizes a variety of investment and insurance products. Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and The Resource Center are not affiliated companies. 00963455 06/21

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