Home / Blog / Retirement

Retirement

Traditional retirement

When I look at my father’s generation and observe retirement in the United States, there are a number of common steps. After decades of service to the same company there comes a point (somewhere between 60-65) where you become fully vested in the company’s pension. When that time arrives, they throw you a party, give you a watch, and pack your personal belongings in a box. You then proceed to complete everything on the honey-do list and maintain a spotless garage. After a few months you start to drive your spouse crazy because you’re around too much. That’s the point where you put the house on the market and head for a golf course community in a warm climate. From there you play golf a few days a week, meet friends for the early bird dinner, discuss your medical ailments, and drive slowly in the left lane, frustrating all those behind you as they rush to get home from work.

The good part of the traditional retirement (at least for the retiree) was the pension. Employers began to realize that those pensions represented tremendous liabilities. It bankrupted many companies and caused a seismic shift in the way most of them handled retirement plans.

Gone are the days of pensions that pay for life, where the employer is responsible for your future. It is now up to you to save and manage for retirement. This is changing the way people are approaching their golden years.

Retire Now

If you truly love what you do for a living and it provides purpose for you, in a sense, you are already retired. If you do not enjoy your job are there some steps you can take to move into a role that inspires you? For many years I brought in significant assets for money management firms. While I enjoyed doing it, I felt as though I had achieved every goal I had for myself in the role. I now teach others how to do what I did. I love doing it. If you are passionate about your what you do, it’s not really work.

Find Your Retirement Home

If you are not living where you ultimately want to be, start looking at ways to get there. Begin by identifying the specific area you like. Take a vacation to that area and meet with a realtor to get a sense of the housing market. Once you leave, keep up with the activity and the pricing of properties being bought and sold. When the time is right, consider buying a place. If the price is too high, maybe you can use it as an investment property by renting it out until you’re ready to move in yourself. Another option is to buy land and hold it until you are ready to build. If you buy it right and later decide to go in another direction, there’s a good probability that it will appreciate in value over time, especially if it’s in a desirable area. I bought my retirement home while I was in my early 40’s. My family loves going and we use it every moment we can. There’s something special about being on vacation in your own place, with your own stuff.

Never Retire

I’ve noticed something about people that retire early. If they don’t maintain a sense of purpose that requires them to use their brain, they lose something mentally. Rather than walking away from something you’ve developed an expertise in over many years, why not find a way to scale things back? A family member spent many years with a fortune 500 company training finance people in auto dealerships to use their proprietary software. She has the means to retire but chose instead to consult for many of the clients she has known for years. She now chooses when and where she wants to work, and gets paid significantly more for her time. My father is 82 years old. He serves on the board of directors for a company he worked with earlier in life. He also volunteers his time to mentor young business owners. He’s as sharp today as he was 20 years ago.

We are at a stage (at least in the U.S.) where our retirement experience will be very different from that of our parents. Regardless of your age, it’s time to consider what you want, and what you might need for the later phase of your life. Answer the following questions:

How would you like to be spending your days?

Where would you like to be living?

What is your willingness to make some sacrifices now to create the lifestyle you envision?

What’s stopping you from making the necessary preparations?

The best time to start preparing is now.

Once you have a chance to reflect, send me your thoughts: [email protected]

Posted by Joel Brookman in Plan your life, retire.

 

Join the discussion by commenting below!