I have two rules related to planning for your retirement:
#1 Don’t run out of money.
#2 After you have Rule #1 solved, don’t forget to enjoy your young retirement years.
As Americans we keep living longer. The Wall Street Journal article “Longer Lives Hit Pension Plans Hard” (February 24, 2015) states, “In its first revision of mortality assumptions since 2000, the Society of Actuaries estimated the average 65-year-old man today will live 86.6 years, up from the 84.6 it estimated a decade and a half ago. The average 65-year-old woman will live 88.8 years, up from 86.4.”
Do these ages seem improbable? You need to remember that by the time you reach age 65, some folks have already passed away. So in essence, the fittest of the fit have survived and the weaker links that were dragging down the averages are already gone.
In my book I talk about the three phases of retirement for folks.
First, there are the “go-go” years in their sixties and sometimes well into their seventies. In this period, travel and hobbies are a big priority for them. People want to see their grandchildren as much as possible, so they spend a lot of time attending their ball games, concerts, plays, and other events. It’s a very social and active time of life.
Second, there are the “slow-go” years for folks. Their desire to travel diminishes. Their minds are still active and sharp, but they just don’t get around like they used to. They spend less money on big-ticket items like motor homes, cruises, and home remodeling; and they’re more content with life’s simpler pleasures. They play card games, read the books they’ve put off for years, go out to dinner with friends, and enjoy more quiet family visits.
Finally, folks move into the “no-go” years. Their minds and bodies may be slowing down, so they need a little help. Perhaps they move in with their children or into a retirement community. A lot of their friends are passing away, so they really begin to come to terms with their own mortality. They enjoy company, but find themselves spending a good deal of time in quiet reflection. For the most part, they are simply happy to still have time on this earth.
Given these natural phases of life that folks go through, we can help you to be successful with the first rule. Even though the future is uncertain, our financial planning process can enable you to make wise choices with your money. However, it’s more than just about how much money you’ve saved. It’s also about your lifestyle choices and having adequate health and life insurance.
It’s a shame to “over-save” for your no-go years and not enjoy experiences during your younger quality retirement years. Don’t live your life with regret. Make the most of every year you are given as you stick to the two big rules about planning for your retirement.
Committed to your successful retirement,
Ron
