If you read any articles, you’ve seen plenty about this subject. No, I’m not talking about football this time—Go Vols! I actually wanted to give you some big-picture questions to ask yourselves before you get too far down the road toward retirement. Don’t worry, I’ll keep it short.
1. Retirement versus financial independence: what’s your goal? This is a big distinction, and our desire for all of our clients is that they would be financially independent. If you are financially independent, then you may want to continue working, volunteer, or play golf. In other words, you’ve given yourself tons of choices. Freedom, in fact. Many of our clients choose to work because they love what they do, and it gives them purpose.
2. Are you retiring from something or to something? One significant determination that you have to make is what your motivation for retirement is. We talk to people seemingly every week who try to “hang on until they can get out.” Wouldn’t you be better off finding something that you love to do and working at it with all your might? As a result, perhaps you continue working past what’s considered retirement age because you have a purpose, make an impact (and some money!), and love what you do.
One of the biggest mistakes that folks make is that they are not retiring to something right now. I would guess that you spend 12 to 15 hours a day working. No, not technically working but rather, getting up thinking about your day, getting ready, thinking about your day some more, driving to work, then thinking about your day, living out the day, going home to meet family and friends for dinner (all the while thinking about your day), and then thinking what tomorrow will hold. That’s a lot of time, a lot of focus, a lot of purpose. When that stops completely, what will you do?
I like to play golf. I feel medium warm about fishing. I love to read. But I can’t do any of those for more than a few hours. In the book The New Retirementality, Mitch Anthony talks about this very question. What will you retire to? We recommend that book quite a bit. Put purpose in your retirement. Now is the time to consider it.
3. Of course, and most obvious, one of the most important things about retirement is: can you afford it? Putting your financial ducks in a row is of pivotal importance. Consider your retirement plans at work and other assets—like your 401(k), investments, savings, what your potential pension might be, and your Social Security benefit. Will these take you through age 100?
Many people tell me that they’re going to die at 85. Maybe so, but there’s no guarantee of that. When we run an analysis, we set everybody’s age to 100, and we encourage you to do the same thing. We provide many of our clients with the vision that allows them to have assurance of “you’re going to make it” or the motivation to change a few things so that they can meet the objective.
4. Is estate planning included in your retirement objective? I’m begging you: get a will, get a durable power of attorney. Make sure that everything you’ve built for the family you love and the friends you care about will be taken care of if you die before age 100. The good news is, if you’re reading this, you’re alive. The bad news is, eventually, we will all die. We need to be responsible and ensure that the right estate planning documents are in place. We are not lawyers, but we can recommend several estate planning lawyers or websites for do-it selfers. And we are adamant that all clients need these documents in place.
The main point of this is that you’re prepared for the long game. If you’re retiring just to fill time, you might find that sitting on the sidelines gets boring fast. Now is the time to set the game plan for the next season of your life. Overall, we’ve seen many clients retire and be happy as clams—in their purpose, in their family life, in their travel, and on the golf course. We want that for everyone who wants it, and we will be happy to help you in any way we can.
