So, you are planning to retire. What are you going to do? Do you have a vision? What kind of financial plan do you have in place to support your vision?
Before our very eyes, graying Americans are redefining retirement. The old vision of working until you were 65, moving to warmer climes and playing golf 2-4/7, is no longer likely. In 1935, when social security was founded, the average life expectancy was 65. Now it is 73 and along with this, the meaning of retirement is changing.
In fact, my grandfather, a doctor who retired at 76, lived to be 104, remaining active and devoted to his family and charities throughout his long life.
A number of books have been written about this phenomenon. One of my favorites, Retirementology: Rethinking the American Dream in a New Economy, delves deeply into the way attitudes about retirement are being re-shaped and why.
When asked, “In the wake of the Great Recession, if you had to do it all over again, would you have spent more time focused on the numbers or more time developing your long-term vision of retirement?” More than 50 percent said, “A vision.”
Today’s retirement is much more than it used to be. Now, it’s a “new chapter” where the retiree draws upon personal and professional experience to forge ahead on new areas of discovery. The options are endless and many retirees find themselves saying “yes” to so many things that they wonder how they used to get their work done before retiring.
Part of having a vision is to support it with a realistic and comprehensive retirement plan to help guide the choices you make to keep that vision intact.
This, in our opinion, is one of the most important “right” decisions you can make. Your plan needs to take into account your long-term goals, your tolerance for risk and the time horizon you expect to be accumulating and then withdrawing from your investments. Creating a plan in which the minimum assets you will require to live in retirement are less than your investment portfolio will help stabilize you during fluctuating markets and life’s inevitable surprises. Having a “shock absorber” such as this will enhance your ability to make sound financial decisions so that you ultimately reach the point where you are able to enjoy an enriched life during retirement.
For more information or to find a financial planner, contact the Financial Planning Association at .
Peter F. Tedstrom, CFP is a founding partner of Brown & Tedstrom Inc. and is a registered representative with and securities offered through LPL Financial. Member FINRA/SIPC.
