Are You Ready To Retire?
Many of us think age dictates when we retire, and it does in those jobs/professions that have mandatory retirement ages. Some of us have pre-set ages in our minds; 55, 60, 62, 65. These ages can be based on reaching
a certain number of years of service (i.e. 30 and out) or when your mom or dad retired; what your spouse expects, or tradition. But the question is.....are you ready?
There are two viewpoints to consider with this question: The inner you and the financial you. Both are equally important.
The Inner You
This is the area of ego (especially for us men), emotion, psychology, feeling productive, etc. We have worked all our adult lives, contributed to society, made the world a better place, and now we are done. The sudden end to the positive feelings we get from being productive can be difficult to deal with. What makes me important if I don’t have my career? Or what makes me significant if I’m not bringing home the paycheck? We must remind ourselves that we still have important meaningful roles to fulfill as spouse, parent and grandparents - our best roles! We can become invaluable assets to charities, such as churches, hospitals and children’s organizations.
What we have observed works best is to have some type of passion that occupies at least a part of the 168 hours God gives us every week and also occupies a portion of our minds.
When clients come to see us near retirement they will tell us of the thing that they will throw themselves into (i.e. golf) and will do this every day (36 holes a day!). Guess what happens? After two or three months (or four or five) they are sick of the activity. So when people tell us they are going to retire, we always engage them in two different, but equally important questions.
1. Are you aware retirement is an irrevocable decision? Once you retire, if you change your mind in six months your job will probably not be waiting for you. Be sure of your decision!
2. Imagine tomorrow is you first day of retirement. What does it look like? What are you doing? How do you feel?
If you are planning to retire in the next year think about these questions very thoughtfully. It is critically important that you mentally prepare for retirement just like you would a marathon or big test.
The Financial Person
The “financial person” is the one that has the fear of outliving your assets. We engage this “person” in projections, discussions of inflation, budgets, long term care, risk management and guaranteed income streams, all to create the “plan,” a strategy to make sure that you don’t outlive your investments, which is a terrible position to be in.
This arena, of course, is where we earn our keep. Sounding the warning bells if the game plan isn’t working or if the semi-annual reviews show that you are not sticking to the game plans (you’re spending it too fast). The issues confronting the “financial person” are basic to deal with. They can be measured and quantified; they are calculable and logical, but also of critical importance.
So, as you prepare for retirement it is important to be prepared with both the inner person and the financial person. See you next time!
Stuart Raider – President
Mr. Raider has been helping families prepare for their desired retirement lifestyle for nearly 35 years. He received his B.A. in Finance from Michigan State University and is both a Charter Financial Consultant (ChFC) and a Chartered Life Underwriter (CLU). Mr. Raider has served as President of The Detroit Chapter of The Society of Financial Service Professionals and is also a member of The Financial & Estate Planning Council of Metro Detroit. He has both acted as a lecturer or Author for The Detroit Better Business Bureau, Corporate Magazine, Michigan Association of Police (MAP) Newsletter and The Michigan Association of Fire Fighters (MAFF). Recipient of the Prestigious Huebner Award, he is a member of the Legendary Advisors Group and financial consultant to MAP.
Peter Mendler – Partner
Mr. Mendler has been helping families prepare for their desired retirement lifestyle for 30 years. He is also an Attorney and C.P.A. Mr. Mendler gained valuable tax information and experience, which he shares with his clients every day, from previous employment with General Motors Corporation and the Internal Revenue Service. Pete is an avid runner, enjoys losing at tennis and has four wonderful grandchildren. His goal, as much as possible, is for each client to feel they are his most important client. He is a member of the Legendary Advisors Group and financial consultant to MAP. Pete is also the President of the board of a local non-profit organization.
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Investment advisory service offered through Global Financial Private Capital LLC. An SEC Registered Investment Advisor Securities offered through GF Investment Services LLC, Member FINRA/SIPC.