By John Ritter, CFP®, CFS
I had the good fortune to spend a few days on a golf trip late last week, which allowed time walking the fairways (or in my case, the rough, trees, bunkers…) with three great friends. During this time, conversation shifted to retirement planning and my one fine friend stated that you need to answer three questions before retiring:
1) Do I have enough?
2) Have I had enough?
3) Do I have enough to do with my time?
Every once in a while there is something so elegantly simple that it just makes sense and sticks with you. This was one of those moments, and I could see so many clients who wrestled with these questions, some successfully and some not so much, as they transitioned from their working years to retirement.
The first question is really the easiest, as it can be modeled and stress tested against variables. This is the area where financial planning software and our CFP professionals can help on the “hard data” side of things. But the next two questions aren’t driven by data, but rather by emotion and psychology.
Have I had enough could also be interpreted as the following. Am I still passionate about the work that I am doing? Do I still excitedly get out of bed in the morning with purpose around my job, or has it turned into drudgery that I’m not looking forward to? We’ve all seen people work many years longer than we expected them to, as the fire was still burning. And we’ve seen those who burned out.
The final question may not seem as important as the first two, but my experience is that it might be the MOST important question to answer. There’s a saying in our business that you need to retire TO something rather than FROM something. Those clients who enjoy a vibrant and successful retirement keep their minds and bodies active and occupied. Whether this is through volunteering, spending time with family, exercise routines, or a host of other activities, one thing is clear – you need to have something that gets you out of bed in the morning. Those that don’t have this tend to age more quickly, as their sense of purpose isn’t as strong as it once was.
Thank you to my friend who provided such a poignant way of analyzing the transition into retirement years. I hope it helps people who read about it this morning.
We hope you have a great week ahead!