Part 2: 40’s and Up
Last week I introduced my “Retire Now Movement” or concept to the world. I focused on all the benefits of the retire now mindset on you individuals in your twenties and thirties. Now it is time to turn my attention on all those 40 and up. You know, those who are actually starting to think about retirement. So, what are the benefits of these next few age groups going through the retire now exercise? Read below to find out!
Retire Now- In Your 40’s
As a newly minted forty-year-old, I certainly can closely identify with this demographic. Most of us have worked in a profession for 20 odd years. We are also at roughly the halfway mark to retirement, with 20 odd years left to go. What do I hope this group gets out of going through this exercise?
Clarity and confirmation to start with. In your financial, professional, and lifestyle part of your life. For starters, if you haven’t already, run a financial plan and see if you are trending in the right direction. You may find you need a serious kick in the behind, or in some cases have to adjust your plans to meet reality. This is the time to really take stock of your finances and make sure they are trending in the right direction.
Professionally, this is the next area to think through. Yes, you may be at the halfway mark of your career. Yes, it may be hard to totally switch careers. But before this train officially leaves the station, you still have a chance to reinvent yourself. Generally, taking your twenty-plus years of experience and repurposing it to possibly something more lucrative or more fulfilling. No wrong answers here. Just don’t be the person who wakes up in twenty years wishing you did something about your career in your forties.
Finally, lifestyle should be put under the microscope in your forties. Many of us have aging kids and parents. You start to take stock of what is truly important to you as in a blink of an eye everyone around you will be aging. Are you truly living your best life now? Ideally, you are starting to make more and more money. This will allow you to not only get ahead of your finances but also spend money on memories and enjoyment. Simply put, don’t put off tomorrow what you can do today.
Retire Now- In your 50’s
Generally, speaking your 50’s is your last full decade of working. Hooray! As such, this is possibly the biggest transformative decade. It is one where you must set yourself up for a lifetime. Additionally, this is where most people start taking their finances extremely seriously. The retire now concept isn’t that hard to picture now as it is the light at the end of the tunnel. So, what can one glean from going through this exercise? I think, a lot.
For starters, when I think about finances this is where the rubber meets the road. You are approaching or at the top-earning potential of your lives. This is where you can make up for deficiencies in your finances. Additionally, this is where you can start getting everything in order to live your ideal retirement lifestyle. I see individuals start to buy that beach or vacation home. Or sell their family home to downsize as kids are out of the house. The point being, this is a great way to stress-test your finances to see if they’ll support your dream retirement.
From a career standpoint go enjoy it. Think through what you want your legacy in the working world to be. Are you working too hard or not enough? Do you want to do that passion project job because that is what you want to be doing in retirement? Take notice and make a change if necessary. Make sure you know this is where people will really start to pay you for all your experience, so capitalize if you’d like.
As for the rest of your life, what can you hope to accomplish by retiring now? My hope is that it will give you the perspective of if you are happy with your lifestyle. You are still young enough to do something about it, but old enough to know what you are capable of doing. Also, since you now have more discretionary income than ever, it is a great time to start doing. Do more vacations. Do more with your life. You have fewer restrictions than you ever had in your life so start living that retirement lifestyle now.
Retire Now- 60’s Plus
Alright, folks, you have arrived at the mountain top. Not many of us work past our 60’s so this is your last hoorah. Possibly, the most crucial age to go through this exercise, as shortly you’ll actually be retired. Soon you will get to enjoy the fruits of your labor. The question I have for all of you is: are you retiring from something or to something? In other words, are you running away from a lifestyle you are done with or running towards your dream lifestyle you can’t wait to get going?
When I see my sixty-year-old clients start to go through this exercise it is eye-opening. First, we really stress test and get their finances in order. As the reality sets in that we are going to have to fund their ideal retirement with their assets it gets scary. This is totally the time to work very closely with your financial advisor to make sure you A. Have enough and B. Have a plan to optimize these assets to live your best life.
Next, spend the few years leading up to pulling the plug doing what I call retirement dating. As you’ve thought through this ideal retirement start testing it out. Travel to areas you may want to retire to. Rent an RV and see if that is your speed, or rent a boat. No sense wasting time today not doing things you will hopefully enjoy. Additionally, by testing the waters prior to retirement you won’t waste any time once you get there. Rather you’ll hit the ground running truly living your best retirement life.
So, what is your retire now lifestyle?
There you have it folks from 20-60 there is a really nice benefit of going through this exercise. To really get maximum benefit check in once a year, or quarter, to take stock. In doing so, hopefully, you’ll come to the realization that you are maximizing every day and setting yourself up for the future.
Here at Diversified, we strive to have our clients living their best lives. This is just one of the ways we want to encourage our clients to make sure they are staying wealthy, healthy, and happy.
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