By Mike Milligan, CFP®
Ideas by Mike™ Podcast / 1.oak Financial
Some advisors wear “boring” like a badge of honor. They keep the conversation centered on a 60/40 portfolio, a generic retirement-income target, and a simple annual check-in. They may even call that financial planning. It sounds disciplined. It sounds simple. And for some people, simple is exactly what they want.
But let me say this plainly: most people deserve a plan built around them, not an average one.
A financial plan should not be limited to the same model, the same assumptions, and the same outcome every other household gets. If the entire plan is “build a portfolio, hope for the best, and live on 80% of your pre-retirement income,” then that is not really planning. That is just a formula.
The Problem With Average
A commonly cited rule of thumb says you need about 80% of your pre-retirement income to live well in retirement. Maybe that is fine on paper. But it is only a starting point, and your own spending may be higher or lower. And who wants to plan for a reduced version of their life?
Retirement should not feel like a reduced version of your working years. It should be the phase of life where your money finally starts serving your life instead of the other way around.
That means the plan has to be built around the person, not the portfolio.
Boring Is Easy
A “Boring, On Purpose” advisor usually keeps things simple:
- A standard 60/40 portfolio.
- A broad withdrawal rule.
- A few market updates.
- A yearly review.
There is nothing evil about simplicity. In fact, simplicity can be a strength. But simplicity becomes a weakness when it is the whole strategy.
If all you are getting is asset allocation and a performance report, then you may be getting general investment planning advice, not a holistic review of your financial big picture.
One of a Kind Is Different
We believe planning should be built around the client’s actual life.
That means we look at taxes, retirement income, cash flow, family priorities, risk tolerance, legacy goals, and the kind of life someone actually wants to live. And sometimes, the right answer is not just a portfolio. Sometimes the right answer includes tools that help solve a real problem.
That may mean:
- Annuities for income stability.
- Life insurance for protection or legacy planning.
- Long-term care solutions for future care risk.
- Alternative investments when they fit the client’s goals and risk profile.
Not because they are trendy. Not because they are complicated. Because the plan should fit the life.
Every one of these tools comes with its own costs, risks, and limitations. Annuities can carry fees, surrender charges, and limited liquidity, and their guarantees depend on the insurer’s claims-paying ability. Life insurance and long-term care coverage involve premiums, and premiums may rise or coverage may lapse. Alternative investments can be illiquid, complex, and higher-cost, may be limited to qualified investors, and can lose value.
The Right Tools for the Right Life
Any firm can fall into the habit of fitting every client into the same box, because it is easier to explain, easier to manage, and easier to scale. We work to avoid that.
But people are not boxes.
Some clients need simplicity. Some need protection. Some need income certainty. Some need tax efficiency. Some need flexibility. Some need a combination of all of the above.
A One of a Kind plan is not about piling on products. It is about building with intention. If an annuity may help address an income problem, great. If life insurance may help address a protection or legacy problem, great. If long-term care planning helps preserve the rest of the plan, great. If alternatives have a role, then they should be considered carefully, not dismissed out of hand.
That is what customized planning looks like.
Why “Boring” Can Fall Short
The boring model usually assumes the most important thing is not making mistakes. That matters. But sometimes it may not be enough.
People do not spend decades saving money so they can settle for a generic lifestyle in retirement. They want freedom. They want options. They want to travel, give, spend time with family, explore, create, and live with purpose.
That is bigger than a 60/40 portfolio.
That is bigger than an 80% income rule.
That is bigger than “good enough.”
What We Believe at 1.oak
At 1.oak Financial, we are not trying to build the most boring plan in the room. We are trying to build the most appropriate one.
Appropriate means disciplined.
Appropriate means thoughtful.
Appropriate means honest.
And sometimes appropriate means using tools that a generic model ignores.
That is the difference between one-size-fits-all and One of a Kind.
One says, “Here is the standard answer.”
The other says, “Let’s build the right answer for you.”
Final Thought
A boring advisor may protect you from a few mistakes.
A One of a Kind advisor helps you design a life.
And if the point of financial planning is to help people live better, then “good enough” is not the goal. The goal is a plan worthy of the life you actually want.
That is why we do what we do.
That is 1.oak.
This article is not to be construed as financial advice. It is provided for informational purposes only and it should not be relied upon. It is recommended that you check with your financial advisor, tax professional and legal professionals when making any investment decisions, or any changes to your retirement or estate plans. Your investments, insurance and savings vehicles should match your risk tolerance and be suitable as well as what’s best for your personal financial situation.
Investment advisory and financial planning services offered through Advisory Alpha, LLC, a Registered Investment Advisor. Insurance, Consulting, and Education services offered through Ideas by Mike, LLC, DBA 1.oak Financial. Ideas by Mike, LLC, DBA 1.oak Financial, is a separate and unaffiliated entity from Advisory Alpha, LLC. Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, and CFP® (with plaque design) in the United States to Certified Financial Planner Board of Standards, Inc., which authorizes individuals who successfully complete the organization’s initial and ongoing certification requirements to use the certification marks. While tax and legal issues may be discussed in the general course of financial and investment planning, Advisory Alpha does not provide tax or legal services. Please consult with your tax or legal professional prior to making decisions relative to these issues.
An Annuity is a long-term financial product designed largely for asset accumulation and retirement needs. All guarantees are backed by the claims-paying ability of the issuing insurance company.
