Navigating Retirement: Beyond the Pension Days
I talk about this topic a lot with friends and clients. I'm 62 so when I came of age in the 1970s and 1980s, the pension was still very common. The 401k had just been created in November 1978 as part of an update to the tax code. So, I saw lots of older folks reach the end of their work life and retire to live on a pension.
That example still sticks with me. I find myself feeling like there is a deadline to complete the task of retirement. You might remember back in the pension days, you could count the days until you qualified for FULL BENEFITS, maybe 90% of your high five years of earnings. When you had enough years of service and where older enough you could leave the company and keep getting paid.
That model was pretty clear. It was like a finish line. You knew when you got across into the retirement zone. Today things are different. I often talk with clients about multiple decision points around "retirement." I talk about:
The day you quit the BIG JOB. It might be a high-paying job. It might be a high-stress job. It may be a not rewarding job. I talk about switching to consulting or to work that relates to a hobby. More fun. Maybe less money but still some income.
The day you quit working for money. This is when you don't even want to work part time. You might focus only on volunteering, travel or grandkids.
The day you turn on your retirement income. This is the day you begin to draw down your retirement savings. You have lots of options and it's smart to consider all your goals and tax situation as you turn on this income.
In pension days, all three of those things happened in one day. But for many of my clients transitioning into retirement, these three choices can be spread over many years.
Crafting Your Ideal Retirement: Decisions, Planning, and Guidance
I saw an article recently that talked about several people's experiences with retirement. It highlights the wide variety of approaches people take to retirement these days. For me the primary theme running through a great retirement, is to be intentional. Think about what you want. Plant to make it possible. Work to make it happen. I hope you will check out the article at this LINK. You may find it helpful if you are trying to imagine quitting the Big Job someday soon.
Today, savvy families plan to make retirement great. They prepare for the path that they prefer. It's not terribly hard, once you begin. I think the journey is easier with the help and guidance of an experienced, highly-trained, CERTIFIED FINANCIAL PLANNER professional and Behavioral Financial Advisor in West Saint Paul, Minnesota. I love to meet new people. So, follow this LINK to find a time for us to have a get-acquainted visit.
I am a financial planner who is an advocate for my clients ALL THE TIME - a fiduciary financial planner. I provide guidance based on clients' best interests, not commissions or sales quotas. I think it's the best way to serve clients and I am thrilled to work this way all the time.
And yes, I'm still taking on a few great families to be part of my financial planning practice in West Saint Paul, Minnesota and, thanks to Zoom, across the country.
Dunncreek Advisors does not provide legal or tax advice, nor is this article intended to do so.