This week, we walked through three very different retirement plans John Pierre, Tiger (not Woods), and James & his wife and each one had a different challenge: risk management, lifestyle creep, or navigating legacy wealth. I’ll take you through each, so you can see how we tackled their goals and avoided the most common pitfalls.

John Pierre: A Near-Retiree Without Bonds

Let’s start with John Pierre, age 61, and his wife, 58. They plan to retire in the next year or two and want to spend about $150,000 annually, with $80K for basic expenses and $50K for travel.

Their portfolio? Impressive:

• $2M in 401(k)s and IRAs
• $500K in Roth accounts
• $3M in brokerage
• $200K in cash
• Zero bond allocation

That last part? A red flag.

Joe and Big Al advised a 20–25% bond allocation—about $1.5M—to create a 10-year buffer of “safe money” during potential market downturns. That allows the rest of their portfolio to stay in equities for growth, but with a cushion to ride out the bad years.

We also talked about using municipal bonds in taxable accounts. They’re tax-efficient and can help smooth the process of Roth conversions, which we’re starting in 2025. Risk tolerance is critical here, especially if your gut tells you to sell during a downturn. Build your plan around how you actually behave, not how you wish you would.

Tiger (Not Woods): The Overconfident Millennial Millionaire

Tiger is 33, and he and his wife make $240,000 a year. Their numbers:

• $3.2M net worth
• $2M in brokerage
• $1M in pretax retirement
• $150K in Roth
• $375K in crypto
• $1M home with a 2.75% mortgage

He’s planning to retire when his taxable account hits $2.8M—and that’s excluding crypto. Add to that a potential $5 million inheritance, and you can imagine why Tiger feels like he’s winning the game.

But here’s the warning: overconfidence bias. Just because you hit it big once with a few stocks or crypto doesn’t mean that strategy will work forever.

Tiger wants to cut his retirement contributions, spend an extra $2,000/month, and lean into brokerage investments. Joe and Big Al hit the brakes. Inheritance is not a financial plan. And speculative returns are not predictable. The advice? Stay disciplined, keep saving, and don’t let lifestyle creep sabotage your future freedom.

James & His Wife: Rich in Assets, Not in Income—Yet

James and his wife, both 60, want to retire next year on $180,000 annually. Their portfolio:

• $2M in 401(k)s
• $2M in deferred compensation
• Purchased annuities with GLWBs (guaranteed lifetime withdrawal benefits)

They’ll get:

• $47K/year from annuities starting at 65
• $20K/year more from annuities starting at 74
• $50K/year in Social Security starting at 70

They’re also planning aggressive Roth conversions throughout their 60s to reduce the tax burden before RMDs (required minimum distributions) begin at 73.

Joe and Big Al offered a balanced take. They’re not the biggest fans of annuities (they usually benefit the insurance company more than you), but in this case, they work well as a bond substitute. That gives James room to take more risk with liquid assets to drive growth and liquidity for those planned conversions.

Why Delaying Social Security Matters

If you can afford to delay claiming Social Security, it can be one of the most powerful tools in your retirement plan. You gain 8% per year in delayed retirement credits plus COLA (cost-of-living adjustments).

But it’s not just about the math. Seeing your account balances drop in a market downturn while you delay withdrawals can be scary. That’s why Joe and Big Al always talk about Social Security as longevity insurance. You may not need the money at 62 but you might at 85. Plan accordingly.

Big Picture Advice

Here’s what all three scenarios had in common:

• Don’t rely on speculation or inheritance
• Keep a balanced asset allocation
• Know your true risk tolerance, especially once you stop working
• Avoid lifestyle creep your future self will thank you
• Make automated saving part of your plan so you don’t spend what you don’t see

We say this every week, but it’s worth repeating: retirement planning isn’t just about the numbers. It’s about behavior, discipline, and having the flexibility to adapt as life evolves.

Intended for educational purposes only. Opinions expressed are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Neither the information presented, nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Consult your financial professional before making any investment decisions. Opinions expressed are subject to change without notice.

IMPORTANT DISCLOSURES:

• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC. A Registered Investment Advisor.

• Pure Financial Advisors, LLC. does not offer tax or legal advice. Consult with a tax advisor or attorney regarding specific situations.

• Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

• Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

• All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.

• Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.

The post Real Retirement Plans That Work and Don’t appeared first on ROI TV.

Let’s talk about four financial habits that keep people broke and more importantly, how to break free.

1. Lifestyle Creep: Spending Your Raise Before You Get It

It starts innocently enough. You get a raise, so you upgrade your car. Then you move into a bigger house, get a second streaming service, eat out more often. Before you know it, your expenses have grown to match your income and you’re still living paycheck to paycheck. This is called lifestyle creep, and it’s a silent killer of financial stability. It doesn’t matter if you make $40,000 or $140,000 a year if you spend every dollar, you’re always one emergency away from disaster. The key is to pause every time your income increases and ask: “Can I keep living like I was and save the rest?”

2. Four Habits That Keep People Broke

Let’s get honest. Here are four behaviors that drain your wealth faster than you can build it:
a. Living Beyond Your Means
If you’re spending more than you make, you’re not just treading water you’re sinking. The fix? Create a monthly budget that reflects your actual income, not your ideal lifestyle. I use the EveryDollar app to track mine, and it’s been a game-changer.
b. Thinking Payments Are Normal
Car payments. Credit cards. Personal loans. We’ve normalized debt so much that most people think it’s just a part of life. But imagine what you could do if you weren’t sending hundreds of dollars to the bank every month. Use the debt snowball method: pay off your smallest debt first, then roll those payments into the next one. Keep going until you’re free.
c. Not Saving Consistently
Saving money isn’t a one-time decision it’s a rhythm. Start with a $1,000 emergency fund. Once you’re out of debt, build up three to six months of expenses. Then, aim to put 15% of your income toward retirement. Saving is a muscle—the more you use it, the stronger it gets.
d. Trying to Keep Up with Everyone Else
You know this one. You see your friend’s vacation photos and think, “I deserve that too.” But comparison is a trap. Nearly 45% of Americans go into debt just to maintain appearances. Instead, focus on your own goals. Save for the things you truly care about and skip the rest.

3. Why Budgeting Is Non-Negotiable

I’ve never met someone who got wealthy by accident. A budget is the map to your money goals. It keeps you from overspending, helps you say “no” with purpose, and shows you where every dollar is going. If you’re not budgeting, you’re guessing and that’s no way to build wealth. Use tools like EveryDollar, Mint, or even a spreadsheet. The point is to get intentional.

4. Getting Out of Debt: Your Income is Your Greatest Tool

Debt isn’t just a drag on your finances it’s a leash. Every dollar you owe is a dollar that can’t go toward investing, saving, or building your future. Getting out of debt puts your income back in your hands. When you’re debt-free, you can start to build wealth instead of pay interest. That’s how real financial freedom starts.

5. Saving for Today and Tomorrow

Build an emergency fund now, not later. The peace of mind is worth it. Once you’re stable, aim to save 15% of your income for retirement. Compound growth is real and the sooner you start, the less you’ll have to save over time.

6. Stop Playing the Comparison Game

Comparison is the thief of joy and the enemy of your bank account. Chasing someone else’s lifestyle is a guaranteed way to stay broke. Financial independence comes when you stop trying to impress others and start investing in yourself.

Final Thoughts
Breaking bad money habits is hard but it’s absolutely worth it. When you stop living beyond your means, ditch debt, start saving, and ignore the noise of other people’s spending, your life changes. You go from surviving to thriving. You don’t need to be rich to build wealth. You just need to stop doing the things that keep you broke.

All writings are for educational and entertainment purposes only and does not provide investment or financial advice of any kind.

The post 4 Financial Habits That Keep You Broke and How to Break Free appeared first on ROI TV.