My choice of profession has allowed me the rare privilege of being able to help hundreds of families plot and execute their retirement planning. I’ve seen it done well and I’ve seen it turn into disaster.

 

While the second outcome is less prevalent, it does happen occasionally. For our next series I’m going to focus on rethinking retirement inside the following framework:

·      Retirement mentality – merging emotional and financial planning considerations

·       Retiring early –considerations, cautions and steps to make it happen

·       Retiring from work but not life

·       Making the most of your tax situation in retirement

·       Retirement gap years

·       Fun stories and examples along the way

There will be snippets in this series that will apply no matter where you are on the retirement spectrum. For Part 1, I want to offer some general thoughts for everyone out there contemplating retirement.

Many of us get out of bed and go to work for 40 plus years.  It’s just what we do.  From Baby Boomers to Gen X we have all pretty much followed the formula of getting some type of education, pursuing a career inside a company, saving/investing inside the company’s 401k, and hopefully putting together some type of retirement plan. From there, we have an epic party when we turn 65, sign up for Medicare and walk out of work with our box of pictures.

If we did not enjoy our work, retirement couldn’t come soon enough. For others, it was forced upon us by our company’s edicts.   However you reach this milestone, it will produce many stark changes in lifestyle, how your money “works” and how you will fill your time.  Mitch Anthony is a retirement prognosticator and poses a question I feel we all need to answer – “What are you retiring too?”  This speaks to retirement as a new challenge, rather than a departure from living.

Consider 2-3 close friends or family and separate them by who has retired “well” and who has struggled.  What were the characteristics of their work, their transition and their retirement plan?  What are the attributes of each party that either contributed to their success or struggles?  Boredom and isolation are two detractors from retirement contentment where a robust social network and an ambitious bucket list are the opposite.

What would an ideal week look like?  Playing golf 4-5 mornings in a week is great for the avid golfer but you’re still going to have another 12 hours of free time after you post your score.  Whether it’s volunteering, continuing to work part time, taking care of grandkids or the like, it’s vital to spend time considering time.  Plotting out a few days on the calendar might help bring the time factor of retirement into greater focus.

Prior to launching PrairieFire I spent time with a coach and other third parties to layout a vision for the firm.  Writing this vision down allowed me to return and remember the why’s and the what’s of the new venture.  Almost like a retirement term paper I think it’s a good practice to write out what you want to do, who you want to impact, what you want to prioritize and where you want to give when you retire.  When you’re feeling down or ineffective, this can serve as a great reminder of your motivations and allow you to reattach to the vision.

Develop your wellness plan.  Hire a third party or consult the multiple online resources to get a clear understanding of how you will take care of yourself mentally and physically.

These exercises can be helpful before and during retirement.  We haven’t discussed money yet, but we will. Financial planning and wealth management will play key roles in ensuring your retirement is both comfortable and sustainable.  Please send me your retirement stories – what have you learned if already retired, what do you wish you knew, and if you’re contemplating retirement, the areas you most want to better understand.

Go PrairieFire Go!