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Retirement Planning…It’s All About Income and Passion or Purpose

May 16, 2016

What is retirement planning?  It has many definitions.  In the world that I help and advise clients, it’s a combination of many things.  It’s helping clients identify and work towards their ideal retirement goals, whatever they are.  It’s defining how your ideal life looks after you no longer have to work, and then making a plan to get to this ideal.  However, there are a few key points in this definition. 

First, you need to recognize that there is no age associated with retirement.  Many fulfilled people I know, who range in age from 60 to 75 and beyond, are still making significant contributions to others.  In fact, you could say that they haven’t retired. So, let’s define retirement as the age at which someone could retire, but may choose to continue working. 

The second aspect is freedom.  We no longer need to work at a job to earn money, but we may choose to work to earn money. 

Third, it is important to know with conviction what you want this stage of your life to look like.  Do you want to travel the world?  Will you do the yard work or hire someone so you have more free time?  Where do you want to live?  Start with a clean slate and create your ideal life. 

The most important questions: What are all these dreams dependent on besides our health?  You guessed it—money—more specifically, income.  You need steady, predictable income that will meet all your needs, for your lifetime.  Can this be done?  Well, if you have saved enough money, it can be, but you must also avoid the mixed messages and erroneous information from the people that are only looking to make a quick profit and aren’t looking out for your bottom line.  Often times, we become brainwashed against the very products and investments that can create this predictable income.  So, how do we achieve this steady, predictable income we need in retirement?  Here are three factors that can help determine your probability of successful financial success in your retirement:

  1. Have you accumulated enough retirement investment savings to last you your lifetime?
  2. Will you outlive your Money? (The average married couple 62 years of age needs to fund 30 years of retirement; children’s legacies are in addition.)
  3. Maintaining the purchasing power of your money. Over the last century inflation has averaged 3%, which means in a 30 year retirement, your living costs go up by nearly 2 ½ times. 

Healthy Longevity in Retirement 

Once you have established a stable and reoccurring retirement income then the factors that enhance and contribute to a healthy longevity that can lead to and even longer healthy and productive life.  A life filled with zest, joy and a sense of accomplishment.  In my opinion (…and many others) here are other key factors that contribute to such a long, healthy and productive life: 

  • Regular Exercise
  • Good Nutrition
  • Not being overweight
  • Good health care
  • Regular social activity with friends and colleagues
  • Purposeful Activity
  • Challenging Intellectual activity
  • Newer and younger friends
  • Faith and Spiritual beliefs in good order 

In the 45 years I have worked with and served clients it has become abundantly clear that all of the above factors can play a significant role in your successful and happy retirement lives.  So, while I am not a Social Scientist or a Psychologist, and will never pretend to be one, these are my observations which I try to share with all of my clients. 

We play only one role in your successful retirement.  Albeit an important role; that of being your financial advisor and financial coach.  We can and do help you to establish your financial foundation and become your quarterback coach, but direct you to other professionals as your need them during your successful retirement. 

Special Report No. 78 (rev) Retirement Planning…It’s All about Income and Passion or Purpose 

Information contained within this report have been compiled from Investopedia, Vanguard, Social Security Administration, Consumer Reports June 25,2015, Forbes, Aegon Center for Longevity and Retirement and Nick Murray. 

The opinions voiced in this material are for general information only and are not intended to provide specific advice ore recommendation(s) for any individual.  To determine which investment(s) may be appropriate for you consult your financial advisor prior to investing.  All performance references are historical and are not a guarantee for the future results.  All indices are unmanaged and may not invested into directly.  Advisory services offered through LPL Financial, a Registered Investment Advisor. 

Investing involves risk including potential loss of principal.  Economic forecasts set forth in the presentation may not develop as predicted. 

Not strategy can ensure success or protection against loss.  There is not a guarantee that a diversified portfolio wil enhance overall returns or outperform a non-diversified portfolio.  Diversification does not protect against market risk.

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