By I often write that (insert time of year) is the perfect opportunity to take a close look at where you stand financially. It’s good to have those reminders throughout the year so that you’re regularly thinking about your financial goals and how you’re planning for retirement.
The holidays might be one of the more difficult seasons to do that, however. Yes, you should make sure you’re not overspending on Christmas gifts and costing yourself down the road, but in reality, it’s a season that’s about spending time with those you love, reflecting on the previous year and dreaming about the next one. And it often involves taking a much-needed break from the daily grind of your job.
That last part is really difficult for some of the clients I’ve worked with. Many of those folks have their identity wrapped up in their careers. They’re the ones who are financially ready to retire, but they’re still hard at work. Maybe they’re worried about future financial security, but often they just don’t know what to do with themselves outside of the office.
There are two questions you need to ask yourself when you’re nearing retirement. The first is the obvious one: Am I financially ready to retire? Do I have enough saved, and do I have a plan for long-term considerations like healthcare and estate planning? That question is why a lot of people start working with us. We’ve even come up with a handy checklist that can give you a bird’s-eye view of where you stand. (It’s free — I encourage you to try it.)
The second question is much more difficult: Am I mentally ready to retire? I wish we had a handy checklist to answer that question. It comes as a surprise to some folks that there’s a lot of emotion involved with transitioning out of work. It’s not uncommon to feel lost, fearful, or worried when you enter that stage of life. And when clients experience those feelings, we challenge them to imagine their perfect retirement and tell us what exactly that looks like, outside of their portfolio. What are they doing? Whom are they spending time with? Where are they living?
That is why many clients continue to work with us long after retirement. My job isn’t to help get you to retirement day and then push you out the door. It’s to provide ongoing guidance so you can feel confident in your financial decisions.
I said that I wish we had a checklist for mental retirement, but we do have a really helpful retirement planning workbook that deals with some of these very questions. Take a look and see if it stirs up some thoughts about what your best retirement looks like. If it does, I’d love to talk to you about it. Reach out and schedule a visit with me or one of our advisors.
I hope you have a wonderful Christmas and New Year, and I hope to hear from you soon.
Article by David Smyth, Senior Partner and Wealth Advisor at Family Financial Partners — a financial services firm in Lexington, Kentucky.