Aging your wealth gracefully, happily
Ken Fisher: 11 pieces of advice to help you plan for your retirement years
I gave you my 11 most frequently offered tips on aging well on Aug. 27, 2017. It was among my best-read columns ever. Since then I’ve been collecting other pieces of advice.
1. Get some wise, old coaches
Could be a minister, friends, relatives or paid advisers such as a CPA, attorney, financial planner or lifestyle coach. Tap them for life-planning wisdom.
2. Get some younger coaches, too
They become the trusted backbench you will need later – folks you trust to gain wisdom with age yet will be timetested when you’re past your prime. They may be your offspring, or not.
3. Pick four annual dates
Only check your portfolio’s value or your net worth then. Train yourself to not think about short-term wiggles. Never tune in because of big market gyrations or to see if news items affect your worth. Short-term checking builds short-term psychology into you.
4. Mark your calendar for three years from now
Go to the advisers picked in 1) and 2) above. Ask them to be brutally honest in detailing your biases. Write them down. Consult your bias list before making decisions. Ask yourself: “Am I doing this because of my biases or despite them?”
5. Consider living abroad
No place beats America. But time overseas changes your perspective on so many things. It nudges your biases. You’ll gain greater wisdom on what matters to you in America when you return.
6. Flip your urban-ness
If you’ve always been a city dweller, live a while in the country. And vice versa. Why? Just like 5): It moderates your biases.
7. Flip your ideology
If you’ve always lived mainly among Democrats, live among Republicans briefly. If always among Republicans, take time in Democrat turf. You may hate it. But you’ll learn fast and better than you may imagine why they believe what they do. It builds tolerance.
8. Consolidate your assets for ease
Post-retirement, diverse, far-flung financial strategies fatigue you. Managing them saps energy. Enjoy life by consolidating to reduce your effort – still aiming at long-term needs. Don’t do it based on a person, but an organization that you have confidence will be there after your time – with the capability to handle things throughout your time.
9. Business owner? Build a succession plan
Without a plan for what happens if you’re incapacitated or dead, your wealth decimates your loved ones. The plan must be coordinated with your estate documents, transferring ownership and providing management continuity.
10. Don’t confuse income with cash flow
Many assume cash flow must come from interest payments or dividends. No.
Think total return where you harvest some from long-term capital gains. Think total return first, taxable income second. See my Sept. 2 column.
11. Walk a lot
As you age, it’s the best exercise.
Ken Fisher is the founder of Fisher Investments and is No. 200 on the Forbes 400 list of richest Americans.
The views and opinions expressed in this column are the author’s and do not necessarily reflect those of USA TODAY.