Originally posted on Facebook - Oct 31, 2015 - Financial Planning Tip Oct 31, 2015 - 002 Adjusting the amount of funds in retirement accounts.

For some persons, using a retirement savings plan where they can commit to a small amount monthly and add an extra amount at the end of the year can work for a period of time. This is partially due to their assessment of risk at a point in time.

For some persons, they manage their initial assessment of risk by saving an amount equal to their investment in a retirement account in a safe investment. That way they are "covered".

Perhaps their subconscious is telling them that this is not all that it seems and in real terms should the rate of tax change in the future, then the retirement income may be much smaller than planned or their family life may be one where they may be planning to take care of the grand kids at some time in the future.

In this way, there may be costs that they are willing to save towards (for those days) and which they are not willing to risk!