Retirement
“There’s never enough time to do all the nothing you want.” – Bill Waterson, Calvin and Hobbes
The majority of my friends and clients in retirement would agree with Bill.
After spending 40-50 hours per week in the activities of an employer, other activities fill the void in retirement.
For some retirees, the time is filled with volunteer activities. Last weekend I met a retired gentleman at a Christmas party in Loveland who spends six days a week volunteering for The House of Neighborly Service and Habitat for Humanity. Volunteerism is popular among retirees as it provides an opportunity for satisfying and fulfilling service to others and a venue to socialize with like-minded retirees.
For others, the early years of retirement are spent traveling, playing golf, sailing the seas on cruise ships, hiking and snowshoeing in our majestic Rocky Mountains, working on the endless “honey-do-lists”, and so on.
Over the fifteen years of working to help my clients retire, I’ve observed some key attitudes and behaviors that contribute to a successful retirement:
- Know when to leave. I’ve yet to have a client tell me that they wished they kept working another year. Leaving a secure job – with a steady income and valuable benefits – after a lifetime of gainful employment is a significant transition. But, if you have the financial means – financial independence – to make the transition, then I recommend giving it serious consideration.
- Know what you’re leaving to. Retirement is about transitioning away from something – to something. Formulate a general plan for your life after full-time employment. You don’t need all the details, just a rough outline. Leaving employment without a plan for life in retirement often leaves retirees feeling socially isolated, struggling for self-identity and self-worth, and anxious.
- Know the state of your finances. Retirement is the most expensive life choice that you will make. Someone who wants to live on $75,000 of gross income for 30 years will need roughly $1.25 million dollars. Are you financially prepared?
- Know when to take Social Security benefits. The timing of your benefits should be objectively based on your age at retirement, your health, your marital status, and your financial situation – not on an emotional decision, fears about the government, or the advice of a friend.
- Know your investments. While Social Security comprises a portion of most retirees’ income, much of the living expenses are covered through withdrawals from savings and investment accounts. A rare few still enjoy an employer’s pension. Knowing the right mix of equities and fixed income – and a plan to turn those assets into a regular, consistent cash flow – is crucial for a successful and enjoyable retirement.
- Know your health and your healthcare. Depending on your age at retirement, there may be a gap before you begin receiving Medicare coverage. Some people delay retirement due to health issues and their desire to remain on the employer’s healthcare plan. Others retire sooner rather than later so that they can enjoy their retirement “bucket list” while still healthy and fit.
The key to a successful retirement is intentional, thorough, detailed planning.
Ask yourself this question: Am I intentionally planning for retirement – or am I just “winging it” in the hopes that all will work out to my liking?
If you are looking for a fee-only financial planner in the Loveland area who can help you create a successful retirement plan – or if you live anywhere along the Front Range and are feeling uncertain and anxious about your retirement plan, consider making a complimentary appointment with me.