Are you really ready to retire?
Retirement is so much more than how much money you have, how much you want to spend or how long you plan to live (still no exact science to predict that last one). While I am not going to argue that money plays an important role in what your retirement may look like, I will argue that it should not be what defines it.
You’ve worked your entire life to get to this point, you’ve put in the long hours, the sleepless nights. You raised a family, moved, changed jobs, moved again, sent kids off to college, watched your kids get married and start their own families. Now it’s time to be a little selfish, to think about you and your spouse, to think about all the things you have bumped out of the would love to do list.
Too often, pre-retirees singularly focus on the big day, and overlook what they are going to do post retirement. Chances are good that your retirement is going to last a long time, so take the time now to think about what retirement means to you. Delve deeper, and put the same level of energy into the retirement experience as you have with the retirement financial balance.
While this may sound well intentioned, it can be difficult to envision without specific examples. Retirement is and should be unique and special for every individual. As a starting point, I strongly encourage you to tuneout distractions and spend real time thinking about these examples. You would be amazed at the amount of untapped creativity, passion and excitement that can be drawn upon with a little me time.
Think deeper. Consider social interaction and legacy planning.
Although social interaction is incredibly broad and covers a wide-range of areas, the common thread running through these examples is quality. There is actual science behind the fact that engaging quality social interaction keeps minds and bodies young. This is often why many residents of active retirement communities thrive and live well into their ‘90s.
To successfully make the transition to retirement, anticipate how you are going to fully engage in quality social interaction, who it’s going to be with, when and where it’s going to happen.
• Maybe it’s a part-time consulting role (because you were one of the fortunate few that had the opportunity to do what you LOVED during your working career).
• Maybe it’s volunteering your time at your favorite charity, the one you always had money to donate to, but no time to contribute.
• Maybe it’s simply re-connecting with a group of friends who have drifted apart.
• Maybe it’s what you really wanted to do professionally, but never did because you knew it wouldn’t pay the bills. Or your responsibilities compounded so quickly that it was too late to
Put the same time and energy into planning the nonfinancial aspects of your retirement as you have with the financial. You only get one shot. Don’t rush through retirement opportunities. Don’t just stop and smell the roses. Instead, plant, grow and nurture them.
start a new career at 35, 45 or 55.
My challenge to you is to think deeper than: I’m going to play golf. I’m going to travel. Next, organize and plan (just as you would with a financial plan) how you are going to achieve your goals. What things do you need to start working on now, what can wait until you retire?
Quality social interaction will help to promote a long healthy and fulfilling retirement, but one thing is for certain, nobody lives forever. You worked hard to build this amazing family, tremendous career and beautiful retirement, how do you want it to live on past you? Do you want it to live on past you?
Legacy planning is what is going to help you answer these questions. To some, legacy planning is synonymous with estate planning … who’s going to get my leftovers.
Yes, an estate plan is important; understanding who is going to get what to prevent the IRS or state from taking more than they deserve is essential. Equally important to a lot of individuals and families, though, is tradition, stories, recipes, photos, trinkets, commodities that may rank low in cash value, but in most cases are worth far more than a pot of gold.
Everyone has been at family parties, heard the same stories, ate the exact escarole soup for the last 50 years at Thanksgiving or sat by the piano to sing Christmas carols with grandma. Yes, it’s true your kids or siblings may know you enjoy these things, but do they know how much they truly mean to you?
Legacy planning should not be launched on your way out or at the end of the road. Talk about it with your family and with those who matter to you. Don’t wait until it is too late. If traditions are important to you, write them down. Make a video. Preserve your precious customs. There is no right or wrong way, and certainly no standardized list of what your legacy planning should include. But what is emotionally imperative to you should be a part of your retirement.
What’s the takeaway? Put the same time and energy into planning the nonfinancial aspects of your retirement as you have with the financial. You only get one shot. Don’t rush through retirement opportunities. Don’t just stop and smell the roses. Instead, plant, grow and nurture them.
Pete Hoover was destined to be a financial advisor. He has always been intrigued by numbers and money matters. They represent captivating puzzles to be analyzed, shaped and fit into place as pictures of financial solidarity. For nearly 40 years, Hoover has tackled those financial puzzles. In 2005, he launched Hoover Financial Advisors, located in Malvern. Hoover can be reached by emailing pete@ hfaplanning.