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

Why have Australian living standards 'fallen' and how do we fix it?

For the last few years there has been much talk of a 'cost-of-living' crisis in Australia and of 'falling living standards'. Lately this has flared up again with the pickup in inflation resulting in a renewed fall in real wages.

Will you run out of money in retirement?

Fear of running out has become a defining retirement anxiety. Why do some retirees die with substantial wealth while others deplete their nest egg? Evidence suggests the answer is more complicated than we think. 

Four options for an income investor’s next dollar

What if Australia’s golden age of dividends is ending? Rather than overhaul your portfolio, it may be worth considering where new capital can work harder. I discuss four income strategies and the trade-offs behind each.

The investment that sidesteps the new tax traps

Tax rules have changed, but many investors are still using yesterday’s strategies. Insurance bonds may offer advantages for those seeking greater control, tax efficiency and certainty about their wealth.

Welcome to Firstlinks Edition 674 with weekend update

What begins as appetite, grows into excess and ultimately ends in spectacle. Millions of investors just discovered this the hard way.

  • 6 August 2026

Testamentary trusts have secured the CGT exemption

Treasury’s latest CGT reform draft delivers a win for testamentary trusts and deceased estates, exempting estate-derived gains from the 30% floor. However, questions on death and divorce rollovers remain unresolved.

Latest Updates

Retirement

Why spending more in early retirement can improve lifetime income

Conventional wisdom encourages retirees to preserve superannuation. But if those likely to qualify for the Age Pension later in life spend a little more today, it may deliver higher lifetime income and a more stable retirement.

SMSF strategies

Who really loses from the SMSF borrowing ban?

The ban on borrowing to buy residential property inside a self-managed super fund was framed as closing a loophole for the wealthy. Yet ATO data suggests its effects may be felt more heavily on members with moderate balances.

Investment strategies

The investing rule that explains the next market crash

What if investment success depends less on picking the right assets and more on understanding the decisions of other investors? A principle borrowed from game theory offers a different perspective on markets.

Investment strategies

Gold: should you own the metal or the miners?

Gold is back in the headlines but investors may be asking the wrong question. Before deciding where prices are headed next, it's worth considering whether the investment you choose will deliver the outcome you're actually seeking.

Fixed interest

Global bonds markets are hiccupping

For decades, investors looked the other way as government debt ballooned. But a reckoning may be beginning. Bond markets are stirring and the consequences could reach far beyond markets into everyday life.

Property

Why investors are looking beyond traditional property sectors

A little-known corner of the property market may be quietly benefiting from powerful demographic and healthcare trends. Could this specialised sector offer investors something increasingly difficult to find: enduring demand?

Retirement

Retirement in reality - 6 months in

Is retirement really an identity crisis, or is something else at play? New insights challenge conventional thinking and reveal why some retirees struggle to fully embrace life after work.

Sponsors

Alliances

  • ASA-Logo-RGB-ActiveGreen-web.png

© 2026 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.