Most of the focus for retirement planning is about how much money you need.
Yes, that is important, but if you haven’t asked the right questions about how you live in retirement, all you have is a target number from a calculator.
There are many retirement calculators on the internet and there are even more used by a variety of financial advisors.
You assume that you have an answer to “how much money do I need to retire?” because the process and technology gave you a specific number, or range of numbers. That is logical, and the calculator may have provided a reasonable assessment. But, the quality of your retirement rests on more than dollars.
Did the inputs to the calculator ask you the questions that follow? No, of course not. Its job is the numbers from investment statements, Social Security or a pension.
Okay then, have you answered the questions about the quality of your days? If not, give yourself time to consider these questions now before you retire so you can protect your retirement and make it what you hope it will be.
These Are the Thorny Questions to Ask Yourself
Why should you assess these questions for yourself? Because they prick your awareness and force you to be more conscious of your decisions.
Answer them well and then secure the fragrant, beautiful rose of retirement.
- Describe what you would be doing on a day that you said that was a good day? How many days could you spend this way?
- What would block your having such good days?
- How often have you missed a meal because you were too busy doing something you enjoyed? What were you doing?
- Will you fill your days by doing things just to pass the time, or do you have things you want to do that are satisfying and purposeful? What are those things?
- If you were sick, not sick enough to be hospitalized but you were bed ridden for a month or more, who are the people who you could count on to prepare food, get groceries, do laundry, walk the dog, feed the cat, water the plants, bring in the mail, pick up medicine, pay your bills, etc.?
- How often would these people be able to help you given their other commitments?
- Would you have to pay for helpers? Is that in your budget?
- How would you pay for an extended incident of long-term care?
- If you’ve made friends at work, have you made a plan for how to stay in touch, or are they just friends at work?
- Who are the people you will want to spend time with, and when are they available?
- What gets you out and about every day?
- Can you regularly share a meal, a drink, coffee, or tea with friends in the neighborhood, or have many of your friends moved away?
- While you were working and getting raises, increasing maintenance costs for your house and the increasing real estate taxes were manageable. When you retire, will you be able to cover those added costs?
- Once you pay all your expenses and bills, how much do you have left to cover unexpected or rising costs?
- Over the next five to seven years, will keeping your house in good shape eat up most of your “extra” money that you would rather spend on leisure or other things?
- What does it cost to run your house? Did you include even things that are not annual like repointing the bricks, cleaning the chimney, painting the exterior etc.?
- What does it cost to run your lifestyle? Did you include items like the annual fees on your credit cards, the excise tax on the car, gifts, club memberships, internet subscriptions, etc.?
- Given the expenses for your house and the cost of running your lifestyle, will you run out of money? How did you arrive at that answer?
- Can your portfolio produce more income? How much more?
- What are your top two concerns as you enter retirement?
If you have not retired yet, or even if you are early in retirement, you have time to work on these questions and make adjustments. The value of really digging into these questions is strengthening your retirement and making it a time to savor and appreciate much that you had to rush past when you were working.
What are the secrets of happy retirees (you will likely to be among them)?
- When you are engaged and productive.
- When you maintain close social connections.
- When you manage money so that you are spending less than is available and there is money left over after expenses.
- When your age is for you a number and not a limit.
- When you feel that you are continuing to grow into the fullness of who you really are. Alternatively, the question would be “When did you stop growing?”
IF as you developed your answers to these questions, you realized that you would benefit from talking with someone who has coached hundreds of retirees as they navigate the transition to retirement, then call me, Dr. Penelope Tzougros, at 781 577 2311 or email me at penelope@wealthychoices.com.
I can help and I’m eager to see you succeed.
Penelope S. Tzougros, PhD, ChFC, CLU. Financial Planner, Author, National Speaker. Wealthy Choices.com. In all 50 states, Penelope S. Tzougros is registered with, and securities and advisory services are offered through, LPL Financial, Member FINRA/SIPC. She is affiliated with Bay Financial Associates, LLC. Financial Planning is offered through Wealthy Choices® and Bay Financial Advisors, Inc. Both are registered investment advisors. Neither is a broker-dealer nor affiliated with LPL Financial.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. The opinions expressed in this material do not necessarily reflect the views of LPL Financial. To determine which investment(s) may be appropriate for you, consult me prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly.