About This Episode
In this episode of GDS Unplugged, Glen Smith and Robert Casey dive deep into one of the most critical topics in personal finance: the biggest retirement mistakes people make, and how to avoid them. With over two decades of experience guiding clients through retirement planning, they share real-life stories, expert insights, and practical advice for both DIY investors and those considering professional support.
Whether you're nearing retirement or just starting to think about it, this episode offers a candid look at what can go wrong, and how to better prepare for the future.
Why Retirement Planning Fails
Retirement is not a finish line, it’s a new beginning. But too often, people step into it without a plan. As Robert puts it, “You don’t step out on a football field without a game plan. Why are you going to retire without a financial plan?”
And not all plans are created equally. A good retirement strategy must account for spending habits, inflation, healthcare costs, taxes, and emotional decision-making. Without it, even the most disciplined savers can find themselves in trouble.
The DIY Trap: Overconfidence and Greed
One of the most common pitfalls in financial planning and investing? Overconfidence.
Many DIY investors believe they can beat the market, but the data says otherwise. Only 10% of mutual fund managers outperform their benchmarks. If Warren Buffett isn’t going all-in on one stock or sector, why should you?
The episode recounts Tom Brady’s $30 million investment in FTX, a cautionary tale showing that even the wealthy and well-advised can fall prey to hype. For everyday investors, a 10% loss can be life-altering. At GDS Wealth Management, we believe investments with steady, long-term performance is a far more dependable and prudent strategy.
Emotions vs. Strategy
Emotional investing is another silent killer. Whether it’s fear during a downturn or excitement over a hot tip, emotions often lead to irrational decisions. As Robert says, “Why risk money you need, to make money you don’t need?”
The podcast compares emotional investing to gambling, and reminds listeners that retirement money isn’t play money.
The Inflation Blind Spot
Inflation is often underestimated in retirement plans. While many use a default rate of 2%, the podcast recommends 3.5% to build in a cushion, especially when factoring in healthcare, which has a historical inflation rate of 5.1%.
Using outdated or overly optimistic inflation assumptions can leave retirees short on cash decades down the line. If you’re considering working with a financial planner, it’s essential to choose someone with deep experience and access to robust planning software, tools that accurately model inflation and ensure your retirement plan remains resilient over time.
Real-Life Lessons: The CT Story
One of the most compelling moments in the episode is the story of “CT,” a longtime DIY investor and client. For years, CT bragged about his “play account” outperforming his professionally managed portfolio. But when he finally ran the numbers, he was shocked — the slow and steady strategy had quietly outperformed his flashy picks.
The lesson? Typically, financial advisers shine in down markets. Over time, a well-diversified and disciplined approach tends to deliver more consistent results.
Key Takeaways for DIY Investors
If you’re managing your own retirement plan, here are the top lessons from the episode:
- Have a plan — and make sure it’s comprehensive.
- Use realistic inflation rates (3.5% is a good benchmark).
- Diversify — avoid chasing trends or concentrating in one sector.
- Know your limits, investing is a full-time job.
- Don’t let emotions drive decisions — stay the course.
Resources
Ready to take your learning to the next step ?
- Connect with Glen Smith and Robert Casey on LinkedIn.
- Listen to more episodes of GDS Unplugged for practical financial insights.
- Learn more about retirement planning strategies.
- Contact GDS Wealth Management for a complimentary financial consultation.
- Submit your questions to Glen and Robert’s GDS Unplugged mailbag by emailing gds@gdswealth.com.
Why Listen?
This episode is packed with real-world wisdom and practical advice. Whether you're a seasoned investor or just starting out, Glen and Robert offer a grounded perspective on how to protect your retirement and your peace of mind.
Because when it comes to retirement, simple is smart. And smart is secure.
GDS Wealth Management (“GDS”) is an SEC-registered investment adviser. Registration does not imply a certain level of skill or training. Advisory services are offered only where GDS and its representatives are properly licensed or exempt. This podcast and blog are for informational purposes only and do not constitute investment, legal, or tax advice. All investments involve risk, including possible loss of principal. The views expressed are those of the speakers as of the recording date and may change without notice. References to market performance or investment outcomes are hypothetical and illustrative and do not guarantee future results. Mentions of public figures are for illustrative purposes only and do not imply endorsement. Any client stories or examples shared are for illustrative purposes only and do not constitute testimonials or endorsements. No compensation was provided, and individual experiences may not reflect typical outcomes. Awards and professional designations reflect past achievements and do not guarantee future performance. For more information about our services, fees, and disclosures, please visit: https://www.gdswealth.com.
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