Most people get planning and investing mixed up … or worse, think they’re the same. Investing without a plan is like jumping in the car for a trip without knowing where the destination is, how to get there, where they are on the way, nor how much money or gas they’ll need. Sometimes that’s fun for a day trip you might think to yourself. But, a day trip is not a serious long term project. Saving for vacation is one thing. Saving for, and then prudently spending money during retirement is a lot more serious.
The below briefly and succinctly describes planning as the big picture and introduced the three risks you face:
1) Behavior Risk, 2) Longevity Risk, and 3) Investment Risk.
Parts 2 & 3 will drill down more from this 30,000 foot view (links for those parts at the end).
For a planning vs investing metaphor I’ve used from my prior career as an Air Force pilot, please see this blog.