#562 - Think Smart, Retire Smarter: Circle of Competence

In this episode, we delve into the concept of the Circle of Competence, a key principle in the mental mindset arsenal. We also feature Karen's inspiring story of transitioning from accumulation to decumulation, redefining her retirement journey. Join us as we explore the importance of deep knowledge versus surface understanding, and how you can apply these insights to your life. Also, don't miss our upcoming live online meetup on November 7, where we'll discuss Roth conversions and introduce the Rock Retirement Club. Sign up at livewithroger.com and take the first step towards rocking your retirement!

PRACTICAL PLANNING SEGMENT

(00:00) This week we will talk about the Circle of Competence and decumulation
(01:05) Live online meet up 11/ 7 at 7pm central about Roth conversions and RRC Open House
(04:33) The internet creates false competence and internet experts
(07:05) Circle of competence says individuals should focus their efforts within areas where they have a deep understanding or expertise
(07:32) Warren Buffett is a master at staying within the Circle of Competence
(12:10) Your competence in retirement is informed by your experience and research
(14:00) How do you know who is competent at some level in retirement planning?
(15:10) As competence goes up, sometimes confidence can diminish
(18:40) If you’re not in your Circle of Competence, what should you do?
(21:30) How do you gauge someone's Circle of Competence?

INTERVIEW WITH KAREN ABOUT DECUMULATION

(24:27) Karen shares her story and journey to understanding decumulation

(25:20) Karen became a widow five years before she retired from pediatrics at age 62
(26:50) Karen learned from the RRC about the concept of decumulation
(29:30) Second Order consequence of not touching principal
(33:00) Karen talked about a degenerative issue from a vision standpoint in your family
(35:56) I asked RRC members for recommendations on where to go, what to do
(38:00) Karen recaps her travels as a single elderly lady traveling alone and with groups
(40:29) So I'm thinking of you in decumulation, that change in conception and seeing in detail that it’s okay to spend x amount of money on various things.