I’ve been using (read: testing) my Mock Retirement planning strategy for roughly five years. I’ve walked pre-retirees through the Mock Retirement process, studied their reactions, and noted the behavior shifts. Now, just two weeks from the book being published, I’ve just received data from one of my last test subjects. The results are ridiculous. Ridiculous is good.
But first, you can’t attack retirement from the supply side alone. In other words, you can’t simply focus on having a big enough supply of money, and ignore your demand for money in the process. Cal Ewing, my high school economics teacher and the Patron Saint of High School Economics, taught me supply and demand in 1995. When demand is low, then a surplus (of supply) can occur. When it comes to retirement, this means the person will have plenty of money. If demand is high, and continues to climb, then you are going to have a problem because you’ll become supply dependent. Mock Retirement works because it refocuses people on demand.
Back to the brilliant results. My latest test subject reduced the use of his net income by over 30% in less than five months. Meanwhile, he realized he didn’t need access to all of the income he’s been earning over the last several years. And will likely reduce use of his income by another 20% over the next 12 months. He has been able to take the manufactured surplus and accumulate money for the future. Accumulation is difficult when the demand side of things are messed up. Simply put, Mock Retirement fixes retirement planning problems from the demand side.
If you want to stop guessing about your ability to retire, then do something about it. I believe this excerpt from Mock Retirement says it best:
As you make your way through this book, I hope you quickly realize retirement planning has very little to do with luck. Having spent nearly 15 years assisting people with retirement planning, I can tell you a “we’ll see what happens” attitude is quite prevalent in the minds of pre-retirees. Admittedly, pre-retirees will never completely know what their investments will do prior to retirement. Unfortunately, this investment uncertainty has clouded the overall confidence in our ability to impact our financial future. This is both empowering and slightly ominous. You are in charge. You will decide whether or not your retirement plan works. Luck is a bit player. You are the star.
If you’d like to take charge of your retirement plans, then it’s time to Mock Retirement.
Peter Dunn a.k.a. Pete the Planner® is an award-winning financial mind and a former comedian. He’s a USA TODAY columnist, author of ten books, and is the host of the popular radio show and podcast, The Pete the Planner Show. Pete is considered one of the foremost experts on financial wellness in the world, but he’s just as likely to talk your ear off about bass fishing.