In the financial planning business, we talk about retirement a lot. We all know people who can’t wait until they retire. And then there are those who are 65, 70 years and older who have no intention of retiring.
One thing is for certain, retirement means different things to different workers. For some, they look forward to it, counting down the days like a ten-year-old waiting for summer holidays. For others, the thought of retirement brings pangs of anxiety and worry.
A financial plan that does not consider the emotional side of retirement is, in our opinion, an incomplete plan. The big question most pre-retirees (and those already retired) want to know is, “Will I be okay?” Exploring what ‘okay’ means is part of our job.
To most retirees, ‘okay’ does not only mean financially. The question includes the gestalt of lifestyle, time, personal fulfillment, status, and other concerns like health or community.
After 35-40 years of employment, retirement can be hard to visualize for some workers. Those are the questions we explore.
Recently, we had our first retirement seminar in which we encouraged our participants to take a good look at what life without work would look like, and feel like. Top of their list of concerns, right after finances, was lifestyle.
Watch any advertisement for Lotto tickets and the theme in the ad is not so much about money… but about time. Visual images of long lazy days spent with loved ones –Ohh! The time! Yes, money buys time (to spend in exotic places of course) but the luxury promoted in ad after ad is Time with a capital T.
We point this out because if there’s one thing retirees have it is time. And often, time, or too much of it, can be a scary thing. Our process explores what having time could mean for each person. The discussion covered questions such as, how to feel productive without the structure of work, and would there be a loss of confidence in no longer contributing to the work force?
Time’s partner of course, is money. Every retiree wants to know if their financial situation will be ‘okay’. And by okay, the key questions are, 1. Enough to maintain a lifestyle of choice, and 2. Enough to last to the end of your life.
We can answer these questions in detail for each couple or individual. Two years in development, our financial planning process considers the reality that life does not occur in a straight line. Most existing retirement planning software offers an income analysis that is just that – a straight line over time.
Our seminar, and our financial planning process looks at four distinct phases of retirement and how a retiree’s income is affected during those phases. Will you be okay for the basic needs of food and shelter? What about spending on fun? What about travel? Exotic travel? A second home closer to the grandkids? Whatever your income questions are, we can answer them. Even the questions about those unexpected bumps in the road that require an unplanned for lump sum of money. Will helping a son or daughter out today affect your long-term plan, etc.?
We can answer that. Next seminar is November 29. See our events tab for details.
The views expressed in this commentary are those of Tall Oak Capital Advisors as at the date of publication and are subject to change without notice. This commentary is presented only as a general source of information and is not intended as a solicitation to buy or sell specific investments, nor is it intended to provide tax or legal advice. Statistics, factual data and other information are from sources Tall Oak believes to be reliable but their accuracy cannot be guaranteed. This commentary is intended for distribution only in those jurisdictions where Tall Oak Capital Advisors are registered. Securities-related products and services are offered through Raymond James Correspondent Services Ltd., member Canadian Investor Protection Fund. Insurance products and services are offered through Gryphin Advantage Inc., which is not a member-Canadian Investor Protection Fund. This commentary may provide links to other Internet sites for the convenience of users. Tall Oak Capital Advisors is not responsible for the availability or content of these external sites, nor does Tall Oak Capital Advisors endorse, warrant or guarantee the products, services or information described or offered at these other Internet sites. Users cannot assume that the external sites will abide by the same Privacy Policy which Tall Oak Capital Advisors adheres to.
