A financial plan to guide late-life decisions will help weather unpredictable future

A saying attributed to Yogi Berra, Samuel Goldwyn, Niels Bohr, and others is, “Never make predictions, especially about the future.”

Whoever said it, the admonition is an apt caution about the perils of prognostication in an uncertain world.

But here is one prediction I am confident will prove true: The institutional chaos President Donald Trump has unleashed will happen continually through the course of his administration. Little wonder I’ve engaged in more than a few conversations recently about the financial implications of the chaos for those nearing retirement or semi-retirement.

My answer doesn’t change with administrations: Retirement or semi-retirement is a complicated transition involving many financial and lifestyle decisions and, therefore, it pays to create a comprehensive financial plan to guide your late-life decisions. You and your household will modify, tweak and pivot from the financial plan depending on how circumstances and desires change. The value of a plan is it gives you a foundation for making calm and rational choices despite the chaos.

“Making a plan for retirement is not about precision and certainty. Far too many variables and unpredictable developments can crop up along the way,” wrote Mark Miller in “Retirement Reboot: Commonsense Financial Strategies for Getting Back on Track.” “But taking the time to estimate your likely expenses and income in retirement will get you beyond guesswork, and even more important, a plan gives you a context for decision-making.”

Patrick Zumbusch, founder and chief executive officer of Wellspring Financial Partners in Tucson, Ariz., recently wrote that he used to think investment performance topped the list in doing his clients well. He later realized helping them navigate their emotions and maintain their financial discipline was critical. Both are still important, he said, but the big lesson is that a plan is paramount.

“It is only through the hard experience of working with thousands of people that have I come to realize getting a comprehensive financial plan is the greatest act of achieving wisdom that a household can do,” he wrote.

A comprehensive financial plan takes plenty of time and effort to create, whether you work with a professional advisor (and only work with an advisor who is a fiduciary) or if you use financial-planning software like MaxiFi, developed by economist Laurence Kotlikoff of Boston University.

The practical base of information and knowledge is invaluable for coping with economic uncertainties (and chaos) during retirement.

Chris Farrell is senior economics contributor for “Marketplace” and a commentator for Minnesota Public Radio.