Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 231

Become an informed user of retirement expertise

  •   Don Ezra
  •   14 December 2017
  •      
  •   

You don’t need to become an expert on retirement. You deal with doctors, lawyers, all kinds of experts, and you still cope. What you need is enough information to work with them, to know how to help them to help you. They provide the expertise. All you ought to be is an informed consumer of their expertise.

That means two things.

First, you need a framework. When you see pieces of a jigsaw puzzle, you wonder how they fit together? It helps a lot if you have the cover of the box that the puzzle comes in, with a picture to show you what the whole thing looks like when it’s complete. If you have that picture, it becomes easier to see where any one piece of the puzzle fits. Here’s how I suggest you should feel:

“Now I know how to think about the issues connected with this phase of life. I now have more knowledge and it has helped to shape my opinions and attitudes. I know what questions to ask, and so I’m more likely to get useful answers. It’s not really as complicated as it’s made out to be. And because of all of that, I’m in control. I’m setting my own path to a happy, comfortable time of life.”

Second, what does it mean, exactly, to be an informed consumer of expertise? It means you can do three things, when an expert tells you something, or gives you advice or makes a recommendation.

The three things you can do

1. Assess the expertise. If you don’t understand the advice of the expert, say so, and make sure it is explained to you in a way that you understand.

2. Challenge the expert. Get the expert to identify the principles behind the recommendation. Make sure you are told about any research that underlies the recommendations. Where does the research come from? Is the evidence based on what has happened in the past? What assumptions is the expert making about the future? What could go wrong? How would the recommendations work out if the future doesn’t evolve in the way the expert has assumed? You need to be able to make that sort of a challenge, and get straightforward answers to assess whether you’re comfortable with the risks.

3. See how the advice applies to your own situation. That’s the area in which you are the expert. You know your own situation better than the expert does. To make the expert’s advice as good as it can be, you need to be able to convey the elements that define your situation to the expert. That way, the recommendation can be tailored to fit you, rather than just being off the peg. Not that ‘off the peg’ is necessarily bad. But the more the expert knows about you, the better the fit is likely to be.

The expert on any other subject is, in fact, an informed consumer of your own expertise about your particulars. So, explain your situation, and the expert can make the advice fit you as well as possible.

Paint a picture of success … and failure

Let me suggest two things you can do in this regard.

One is to paint a picture of success. Imagine yourself (your partner, your family, whoever) five years down the road. What would make you feel that the outcome has been good? What would make you feel disappointed? Convey to the expert what that picture looks like.

As human beings, we’re notorious for hoping for more than is reasonable. Typically, our financial ambitions far exceed our willingness to pay for them, or the amount of risk we’re willing to take. That alone is worth discussing with the expert: to see how feasible your definition of success is.

Of course, the second you should do is to paint a picture of failure. What sort of outcome, five years down the road, would make you feel disappointed? If you can let the expert get inside your head, it might be possible to detect early signs, in the future, that events are working out well or not. It might be possible to design a Plan B that isn’t too difficult or expensive to move to. The earlier the detection, the more ‘Plan B’ possibilities.

All of this should make you realise how much better you know yourself than the expert knows you. I hope this realisation will give you the courage to challenge the expert’s advice – something you might otherwise be afraid to do, because after all, they’re the expert, right, and what do you know? You know yourself, that’s the answer. You deserve to fully understand recommendations before they are implemented. And so, raise issues with any expert whose advice doesn’t make you comfortable.

 

Don Ezra has an extensive background in investing and consulting, and is also a widely-published author. His current writing project, blog posts at www.donezra.com, is focused on helping people prepare for a happy, financially secure life after they finish full-time work.

  •   14 December 2017
  •      
  •   

 

Leave a Comment:

banner

Most viewed in recent weeks

The growing debt burden of retiring Australians

More Australians are retiring with larger mortgages and less super. This paper explores how unlocking housing wealth can help ease the nation’s growing retirement cashflow crunch.

Warren Buffett's final lesson

I’ve long seen Buffett as a flawed genius: a great investor though a man with shortcomings. With his final letter to Berkshire shareholders, I reflect on how my views of Buffett have changed and the legacy he leaves.

LICs vs ETFs – which perform best?

With investor sentiment shifting and ETFs surging ahead, we pit Australia’s biggest LICs against their ETF rivals to see which delivers better returns over the short and long term. The results are revealing.

13 ways to save money on your tax - legally

Thoughtful tax planning is a cornerstone of successful investing. This highlights 13 legal ways that you can reduce tax, preserve capital, and enhance long-term wealth across super, property, and shares.

The housing market is heading into choppy waters

With rates on hold and housing demand strong, lenders are pushing boundaries. As risky products return, borrowers should be cautious and not let clever marketing cloud their judgment.

Why it’s time to ditch the retirement journey

Retirement isn’t a clean financial arc. Income shocks, health costs and family pressures hit at random, exposing the limits of age-based planning and the myth of a predictable “retirement journey".

Latest Updates

Interviews

AFIC on the speculative ASX boom, opportunities, and LIC discounts

In an interview with Firstlinks, CEO Mark Freeman discusses how speculative ASX stocks have crushed blue chips this year, companies he likes now, and why he’s confident AFIC’s NTA discount will close.

Investment strategies

Solving the Australian equities conundrum

The ASX's performance this year has again highlighted a persistent riddle facing investors – how to approach an index reliant on a few sectors and handful of stocks. Here are some ideas on how to build a durable portfolio.

Retirement

Regulators warn super funds to lift retirement focus

Despite three years under the retirement income covenant, regulators warn a growing gap between leading and lagging super funds, driven by poor member insights and patchy outcomes measurement.

Shares

Australian equities: a tale of two markets

The ASX seems a market split in two: between the haves and have nots; or those with growth and momentum and those without. In this environment, opportunity favours those willing to look beyond the obvious.

Investment strategies

Dotcom on steroids Part II

OpenAI’s business model isn't sustainable in the long run. If markets catch on, the company could face higher borrowing costs, or worse, and that would have major spillover effects.

Investment strategies

AI’s debt binge draws European telco parallels

‘Hyperscalers’ including Google, Meta and Microsoft are fuelling an unprecedented surge in equity and debt issuance to bankroll massive AI-driven capital expenditure. History shows this isn't without risk.

Investment strategies

Leveraged single stock ETFs don't work as advertised

Leveraged ETFs seek to deliver some multiple of an underlying index or reference asset’s return over a day. Yet, they aren’t even delivering the target return on an average day as they’re meant to do.

Sponsors

Alliances

© 2025 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.