Retirement Strategies vs Retirement Tools

Retirement Strategies vs Retirement Tools

There is a theory that has been going around the financial industry lately. And the theory is the idea of asking yourself a question: “When it comes to your money and your investments, are you focusing your decision-making process on the retirement tools, or are you focusing on a retirement strategy?” They may seem like the same thing to you. But they actually aren’t. Think about a contractor. He has a tool belt that is full of tools. But not every job he takes requires him to use every tool. And your retirement strategy is no different. So, today we’re going to help you understand the difference between retirement tools and retirement strategies. Hopefully how to go about developing the strategy that will help you and your family.

Let’s first, discuss ways to differentiate between retirement tools and retirement strategies. You can think of retirement tools as all the different investment products and financial products that you can choose to invest money in. And you can think of retirement strategies as the concepts and theories that you can devise that will help you figure out exactly which retirement tools might be the best tools to help you accomplish the goals and objectives that you have for your situation.

So, what is the difference between a TOOL and a STRATEGY?

Well, for example, investment products aren’t strategies, but they are tools. You will see most investment products and financial products marketed as a strategy, but don’t kid yourself. They are nothing more than a tool that you can use to help you develop a strategy. A strategy is the “plan” that you develop that defines exactly how you are going to achieve your desired goals and objectives with your money. There is a huge difference. Most good plans have many different tools that can be used and should be used.