Making Sense of Retirement Planning
Retirement planning has become another complicated part of our ever-more-complicate lives. So from time to time, we'll share some ideas on this. Of course, we can't give individual, personal advice. But we can pass on what we learn from our studies and from other professionals.
To get started, you need to define "retirement." For some it means "stop working." For others it means "work less." Still others would prefer "financial independence." There's not one definition, so you need to consider one that makes the most sense to you.
As you're thinking about this, let's acknowledge that some of us have no intention of retiring. We enjoy what we do. And while we may have aspirations of taking more time off to enjoy other aspects of our lives besides the particular work with which we engage now full time, we can't imagine a life in which we "stop working."
On the other hand, many of us really have not particular attachment to their work. It's just something we do for money. So if you think you've amassed enough money to stop working, that's what you'll likely want to do.
I hope that helps you sort through this and come up with your definition. One additional comment: Even if you're not planning to stop working, you may reach a point where you don't want to work at the same level of intensity, or put in those long hours, either because you just don't have the physical or mental stamina, or because you've just got a kind of build-up of avocations that you've put off for years and you'd like to spend more time pursuing them. Or maybe you want to achieve financial independence so that you don't rely on your work to keep you going. You'll work, doing what you enjoy, but always have the ability to walk away if things change either in your life, or your industry or profession.
Here's are some examples of what could change might make even the most stalwart workaholic consider packing it in and finding other ways to use the time God gives them to fill up their days:
Government regulations: Working in a fairly regulated industry, this one hits home. Every once in a while, I look at ever-increasing regulation and wonder whether I'll either lose my patience with the time and effort required to keep abreast of new requirements, as well as the need to adopt the business to those requirements. Never mind the ever-increasing ability and desire of the legal profession to encourage people to sue over even the smallest mistake or inconvenience.
Technology: So far, technology's been a huge help. But maybe the time comes when no one needs humans anymore. In my own industry, you hear rumblings that people may someday go to a robot for financial advice and counsel. Indeed, some believe the new "robo-advisor" products out there could be the first step in that direction.
People: I'm not talking about clients aging and dying here. Any professional practice has to factor that in by taking in younger partners, or cultivating younger clients and customers. But what I'm talking about is the deteriorating level of intelligence, morality, and common sense that seems to characterize succeeding generations of Americans who have been subjected to our politically correct, intellectually dumbed-down educational system. Combine this with the endless time people spend on electronic devices absorbing essentially useless information along with mind and soul-numbing entertainment. It's taken a toll and the downward trend is not encouraging. Dealing with such people can be a drain that tests your limits of endurance.
These are just a few items that could cause work to turn from enjoyable and rewarding to big pain in the you-know-what.
Well, that should be enough to get you to think about your concept of retirement - at least what you think of it now. It can change as you move along life's journey. But we'll talk about that another time. Just get your concept of retirement straight for now. It helps greatly if you spend some time visualizing what it might be like. So don't just rely crunching numbers with retirement calculators. You might start with what your morning will look like: when will you wake up, what will you do now that you don't have to rush out to work, and so on. Where will you be: where you live now, in a new location, and so on. Who will be with you: spouse, no one, and so on. How will all this feel? That might be difficult to imagine, but give it a shot. Will you feel invigorated, liberated, relaxed? Or are you concerned you'll go stir crazy without enough to do?
And remember this: The stakes are high here.
From a strictly number perspective, if you don't put any thought into retirement before you hit retirement age, you'll likely be either completely unprepared for living without earning income or you will have narrowed your choices for how to support yourself down to only a few items like social security and...well, you tell me - especially if you won't be getting a pension from your company, as is the case for most of us these days. Throw in how long we're living, the cost of health care (even with Medicare), the possibility of you and/or your spouse winding up in an assisted living or nursing home facility, the loss of purchasing power from inflation (even low inflation takes a toll over time), and a host of other variables, and you should be able to see why planning ahead is so critical.
From a more personal, day-to-day perspective, I can tell you from experience that just about everyone goes through a period of adjustment. For some, it can be disorienting, even traumatic. If you literally go from a full-time, all-consuming work day to a day with "nothing to do," it'll likely be more on the disorienting, even traumatic side. So at the very least, make provisions for filling up your time with things you enjoy doing, things you know will sustain or improve your health (physical and mental), things you've always wanted to do but never had time to do, etc.
With all that in mind, remember, again, we're not going to be able to give anything close to personal, individual advice. In fact, we can't (those regulations again!). But, as mentioned, we can share what we've learned and continue to learn from experience and ongoing study and research, as well as ideas that other professionals share.
Meanwhile, if you're still working and aren't saving anything for the future, don't bother to read any future posts until you decide to start saving. You'll just get frustrated, and maybe even upset or angry when you learn what's in store for you.
For the rest of us, all we can do is put forth a good effort to plan ahead, remembering that you can only plan so much. Just make sure it's enough such that you'll know you did your best when it comes time to hang up your saddle.
To get started, you need to define "retirement." For some it means "stop working." For others it means "work less." Still others would prefer "financial independence." There's not one definition, so you need to consider one that makes the most sense to you.
As you're thinking about this, let's acknowledge that some of us have no intention of retiring. We enjoy what we do. And while we may have aspirations of taking more time off to enjoy other aspects of our lives besides the particular work with which we engage now full time, we can't imagine a life in which we "stop working."
On the other hand, many of us really have not particular attachment to their work. It's just something we do for money. So if you think you've amassed enough money to stop working, that's what you'll likely want to do.
I hope that helps you sort through this and come up with your definition. One additional comment: Even if you're not planning to stop working, you may reach a point where you don't want to work at the same level of intensity, or put in those long hours, either because you just don't have the physical or mental stamina, or because you've just got a kind of build-up of avocations that you've put off for years and you'd like to spend more time pursuing them. Or maybe you want to achieve financial independence so that you don't rely on your work to keep you going. You'll work, doing what you enjoy, but always have the ability to walk away if things change either in your life, or your industry or profession.
Here's are some examples of what could change might make even the most stalwart workaholic consider packing it in and finding other ways to use the time God gives them to fill up their days:
Government regulations: Working in a fairly regulated industry, this one hits home. Every once in a while, I look at ever-increasing regulation and wonder whether I'll either lose my patience with the time and effort required to keep abreast of new requirements, as well as the need to adopt the business to those requirements. Never mind the ever-increasing ability and desire of the legal profession to encourage people to sue over even the smallest mistake or inconvenience.
Technology: So far, technology's been a huge help. But maybe the time comes when no one needs humans anymore. In my own industry, you hear rumblings that people may someday go to a robot for financial advice and counsel. Indeed, some believe the new "robo-advisor" products out there could be the first step in that direction.
People: I'm not talking about clients aging and dying here. Any professional practice has to factor that in by taking in younger partners, or cultivating younger clients and customers. But what I'm talking about is the deteriorating level of intelligence, morality, and common sense that seems to characterize succeeding generations of Americans who have been subjected to our politically correct, intellectually dumbed-down educational system. Combine this with the endless time people spend on electronic devices absorbing essentially useless information along with mind and soul-numbing entertainment. It's taken a toll and the downward trend is not encouraging. Dealing with such people can be a drain that tests your limits of endurance.
These are just a few items that could cause work to turn from enjoyable and rewarding to big pain in the you-know-what.
Well, that should be enough to get you to think about your concept of retirement - at least what you think of it now. It can change as you move along life's journey. But we'll talk about that another time. Just get your concept of retirement straight for now. It helps greatly if you spend some time visualizing what it might be like. So don't just rely crunching numbers with retirement calculators. You might start with what your morning will look like: when will you wake up, what will you do now that you don't have to rush out to work, and so on. Where will you be: where you live now, in a new location, and so on. Who will be with you: spouse, no one, and so on. How will all this feel? That might be difficult to imagine, but give it a shot. Will you feel invigorated, liberated, relaxed? Or are you concerned you'll go stir crazy without enough to do?
And remember this: The stakes are high here.
From a strictly number perspective, if you don't put any thought into retirement before you hit retirement age, you'll likely be either completely unprepared for living without earning income or you will have narrowed your choices for how to support yourself down to only a few items like social security and...well, you tell me - especially if you won't be getting a pension from your company, as is the case for most of us these days. Throw in how long we're living, the cost of health care (even with Medicare), the possibility of you and/or your spouse winding up in an assisted living or nursing home facility, the loss of purchasing power from inflation (even low inflation takes a toll over time), and a host of other variables, and you should be able to see why planning ahead is so critical.
From a more personal, day-to-day perspective, I can tell you from experience that just about everyone goes through a period of adjustment. For some, it can be disorienting, even traumatic. If you literally go from a full-time, all-consuming work day to a day with "nothing to do," it'll likely be more on the disorienting, even traumatic side. So at the very least, make provisions for filling up your time with things you enjoy doing, things you know will sustain or improve your health (physical and mental), things you've always wanted to do but never had time to do, etc.
With all that in mind, remember, again, we're not going to be able to give anything close to personal, individual advice. In fact, we can't (those regulations again!). But, as mentioned, we can share what we've learned and continue to learn from experience and ongoing study and research, as well as ideas that other professionals share.
Meanwhile, if you're still working and aren't saving anything for the future, don't bother to read any future posts until you decide to start saving. You'll just get frustrated, and maybe even upset or angry when you learn what's in store for you.
For the rest of us, all we can do is put forth a good effort to plan ahead, remembering that you can only plan so much. Just make sure it's enough such that you'll know you did your best when it comes time to hang up your saddle.
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