Thinking of Retiring? Life Decisions are as Important as the Financial Decisions

When a person asks me about retiring, we generally are addressing the financial aspects of the retirement equation. Using our Goal Planning and Management software, we are able to estimate the future costs and results, and come up with a percentage of success. The issue is whether the client is able to have funds to meet the stated needs without running out of money during their lifetime. As people are living longer, planners need to consider the possibilities of an extended life span. Most plans for a couple age 65 use the expected lifespan of one of the couple to reach age 93. Many people know people who lived longer than that, in some cases, much longer. When visiting my aunt at an assisted living facility, I had a lovely conversation with a lady who was 106 years old. At my synagogue, a lady was given an honor at the Sabbath service. After services she greeted all of the guests at the Oneg Shabbat (refreshment hour). She was celebrating her 100th birthday.

Anecdotal evidence is mounting about active people who retire healthy who do not have sufficient activities and who’s health declines quickly after retiring. Even if there is not a health declining situation, I believe that it is important to have activities that keeps a person, busy, enthusiastic about his/her projects and interests. So when we ask a person who is planning for a retirement, we like to hear about a detailed passion, interesting projects, possibly employment, or other reasons to keep moving forward. Saying that you have home projects may not be enough if they take forever to get done. My slogan about building projects applies to professionals and do-it-yourselfers: “In any building project, it will take 90% of the time to do 90% of the work. Then it takes 90% of the time to complete the last 10% of the work.” The best projects and activities are ones where you are accountable to others for completing them.
So, planning for retirement should involve several hours with your financial advisor. It should also include what you plan on doing.

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making a decision, and it does not constitute a recommendation. Any opinions are those of Robert Lankin and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct.