- Set Goals
Set goals for retirement. One exercise I often use with clients as we begin to discuss retirement is to have them envision what a typical day looks like. Let’s say you’re retired now and it’s Tuesday morning. What does the day look like for you? What are your plans? Yogi Berra once said, “If you don’t know where you’re going, you’ll end up somewhere else.”
I’ve often compared financial planning to planning for a trip. You need to know where your starting point is, where your destination is, and any stops you want to make a long the way. I still remember the scene from the original movie Vacation starring Chevy Chase and he’s showing the plan for their upcoming family trip to the kids on what looks like an old Atari® game system. He had it all mapped out. Of course, things didn’t go exactly as planned for the Griswald family and guess what – they probably won’t go exactly as you plan either. Part of the journey is understanding that there will be some bumps in the road. Maybe it’s just a small inconvenience like a flat tire, or maybe it’s something major like a blown gasket. Either way, it’s important to be prepared. That’s where planning ahead really matters.
Once you’ve set your goals, we can start to map out the trip and plan for contingencies. If we plan properly, you’ll eventually make it to your destination – and you’ll have enjoyed the journey as well.
- Enjoy the trip
Making your health (mental, physical, emotional) a priority is a big deal! As my kids remind me all the time, “champions don’t skip leg day, dad.” Well, don’t skip out on your health either. We want to make sure you really are able to enjoy that journey – I mean, you wouldn’t want to miss the world’s largest ball of string, would you? So, let’s make sure that we take care of you along the way as well. You keep the oil changed in your car. You get the tune-up done when needed. You don’t drive around on bald tires. Why wouldn’t you take care of yourself the same way? And I’m not just talking about physical health, I’m talking about mental and emotional health as well! After all, they are related. Take care of yourself.
Of course, those bumps in the road we talked about earlier can also include health related issues. We can’t always see what’s coming down the road, but we can do our best to be prepared for those bumps.
- Take care of what matters most
If you don’t have an estate plan, the state will have one for you! You don’t have to be “wealthy” to need an estate plan. An estate plan is simply a way to leave written instructions on how you want things handled in different circumstances. Ultimately, the plan will spell out what happens once you pass away, but there are several other contingencies to plan for as well. What would happen if you became incapacitated? Do you want to have a Do Not Resuscitate order? If you have dependents (adult or minors) what would happen to them in the event of your death or incapacitation? If you don’t have any dependents, do you want your assets going to a charity (or charities) that matters to you? What is the best way to pass those assets on to those that matter to you? All of these questions are answered with a well-executed estate plan.
But – how does that help me enjoy my retirement? Glad you asked! You can feel comfortable and confident knowing that your wishes will be carried out if and when you are no longer able to communicate what those wishes are. Eliminating that extra concern from your plate early allows you to enjoy your retirement years without that extra weight on your shoulders.
In the end, retirement should be about enjoying the fruits of all those years of hard work you’ve put in – and about enjoying the next phase of your life. Plan ahead, take care of yourself, and take care of those that matter most to you. Enjoy it! You’ve earned it!