Mike Milligan discusses “deja vu traps” in the context of retirement planning
Listen to the interview on the Business Innovators Radio Network: https://businessinnovatorsradio.com/interview-with-mike-milligan-founder-of-1-oak-financial-discussing-exposing-the-deja-vu-traps/
Mike Milligan, founder of 1 Oak Financial, explains that deja vu experiences often evoke eerie feelings and can occur during less-than-happy moments in life. He emphasizes that in the realm of financial planning, these traps manifest as feelings of conformity and a lack of uniqueness among clients. At 1 Oak Financial, the goal is to create personalized financial plans that celebrate each client’s individuality, rather than providing a generic experience.
The term “deja vu traps” in retirement planning encapsulates the repetitive and often detrimental experiences individuals encounter when they adhere to conventional financial advice without considering their unique financial situations. This concept is particularly relevant in the context of retirement, where the stakes are high, and the consequences of poor planning can be significant.
Deja vu is a phenomenon where individuals feel as though they have experienced a situation before. In retirement planning, this translates to clients feeling as though they are receiving the same advice and facing the same challenges as others, leading to frustration and helplessness. Mike emphasizes that many people find themselves trapped in a cycle of negative experiences, often due to following generic advice that does not cater to their specific needs.
Many individuals rely on traditional financial strategies, such as investing in annuities, bonds, or following a buy-and-hold strategy. While these methods may seem safe on paper, they can lead to significant pitfalls if not properly structured. For instance:
- Annuities: While they can be beneficial, the average variable annuity fee can range from 2.3% to 3% annually. Over time, this can result in substantial costs that erode retirement savings. Additionally, complex surrender charges and inflation risks can turn what should be a secure investment into a financial nightmare.
- Bonds: Often marketed as safe investments, bonds can be volatile, especially in a changing interest rate environment. If inflation outpaces bond yields, retirees may find their purchasing power diminished, leading to financial strain.
- Buy-and-Hold Strategy: This strategy, popularized by Warren Buffett, can be effective until market downturns occur. During such times, retirees withdrawing funds may lock in losses, compounding the damage and jeopardizing their long-term financial health.
Milligan stresses the need for personalized financial planning that acknowledges the uniqueness of each client. The goal is to avoid the deja vu experience where individuals feel trapped in a cycle of repeating the same mistakes. By recognizing the distinct circumstances of each client, financial advisors can create tailored strategies that mitigate risks associated with inflation, taxes, and market volatility.
Mike shared: “I believe everyone is One of a Kind; and You deserve a One of a Kind Financial Plan 
that is about You.”
To break free from these traps, individuals should be vigilant for signs that they may be following the herd mentality or relying on outdated advice. Some red flags include:
- High Fees: If clients are paying excessive fees for financial products without understanding their value, it may indicate a need for reassessment of their financial strategy.
- Lack of Proactive Communication: If clients only hear from their financial advisors during tax season or when statements arrive in the mail, it may be time to seek a more engaged and proactive approach.
- Tax Surprises: Unexpected tax bills can signal that a financial plan is not tax-efficient, which can significantly impact retirement income.
About Mike Milligan
Mike Milligan, a Certified Financial Planning Professional, author, podcast and radio show host, and university lecturer, brings 26 years of experience to the financial planning industry. After beginning his career in large banks and insurance companies, he founded his first firm 15 years ago with the belief that “everyone is One of a Kind; and they deserve a One of a Kind Financial Plan.”
Challenging the “One Size Fits All” approach to financial advice, which he refers to as “Retirement Déjà Vu,” Mike developed The One of a Kind Financial Plan. This comprehensive plan addresses taxes, retirement income, investments, long-term care, and legacy, enabling clients to live a “One of a Kind Life.” Recognizing the need for a clear retirement vision, he then created Retirement CHI to supplement the plan. This innovative approach focuses on community, health, and impact, further reducing stress for his clients. Mike leads a team of over 20 professionals across the United States, including Hawaii.
Learn more: http://www.1OakFinancial.com
Recent News & Interviews:
- Mike Milligan discusses The Sea of Sameness https://authoritypresswire.com/mike-milligan-founder-of-1-oak-financial-interviewed-on-the-influential-entrepreneurs-podcast-discussing-the-sea-of-sameness/
The information provided is for illustrative purposes only and does not constitute investment, tax, or legal advice. Information is obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed. Neither Mike Milligan nor his guests are liable for the use of information discussed. Always consult with a qualified investment, tax, or legal professional before taking any action or schedule a meeting with Mike Milligan. Annuity guarantees are based solely on the financial strength and claims-paying ability of the issuing company. Individuals should thoroughly review the contract for specific product features and costs. Income payments and withdrawals from deferred annuities are generally taxable as ordinary income in the year they are taken.
