Month: November 2019

What would you like to accomplish in retirement?  It’s a question I always ask my clients. My goal is to help them create a plan that feels both emotionally fulfilling and productive. Retirement offers incredible potential. For many people, it’s the first time in their adult lives when they don’t have a full slate of responsibilities—a desk to report to or kids to shuttle to and from school. And that means they can pursue wilder dreams than they may have had time for previously: building a non-profit to support the cause closest to their heart, traveling to exotic locales, or mastering the art of béchamel in a French culinary program, for example.  

But more often than not, when I ask about what they’d like to accomplish once they clock out for the last time, the response I get isn’t very… ambitious. Instead, most clients respond with, “Absolutely nothing.” They picture themselves spending their days lazing on a beach, putting in long hours on the putting green, or sailing into the sunset—perhaps with a grandchild or two by their side. And I don’t blame them. 

It makes perfect sense to fantasize about endless hours of rest and relaxation when you’re in the thick of your working years. But what most people don’t realize is that just a short time in, all of that R&R becomes a little routine—and that routine quickly turns to boredom. It’s then that a key truth becomes evident: When it comes to retirement, purpose is crucial. 

What does purpose look like? It’s different for everyone. But many find that integrating a little pro bono work into their regularly scheduled retirement programming makes a tremendous difference in their lives. 

With your bills paid and kids out of the house, retirement can be the perfect time to lend the skills you’ve honed over the course of your career to a worthy cause for little to no cost—particularly if you love what you do. 

I’ve watched so many clients find fulfillment through pro bono work. Attorneys who take on cases for people in need. Accountants who offer tax advice to organizations dedicated to the public good. Contractors who collaborate with other members of their community to build houses for the homeless. In the end, they found that it was about more than just doing good. It also gave them an opportunity to connect socially and use their minds and their bodies. It gave them a reason beyond early tee time to get up in the morning. And that is just priceless. 

For more information on how to build a meaningful retirement, check out my book, You’re Retired, Now What?

Building a retirement plan is not a one-shot deal—at least not in my office. Crafting a plan that fits my clients’ needs takes multiple conversations, careful observation, and a personalized approach. But for that first meeting, I have a primary goal: to understand what peace of mind means to them. 

I don’t use the financial services industry’s generic risk profile questionnaire to do that. Why? Those questionnaires don’t account for the fact that emotions drive decision making. Without that important insight—along with the potential for clients to misunderstand some of the questions—it’s all too easy to end up with an incorrect risk profile, and thus, an inadequate plan. 

Instead, I apply a set of metrics that I have developed over more than three decades in this business and meetings with literally thousands of potential clients. My metrics provide me with everything I must know to do the best possible job for the client, whatever their circumstances may be. They take into account the reality that, while clients’ concerns are often similar, their situations are seldom the same. 

To determine how to establish peace of mind, I start by asking about their biggest fears.  When I know what keeps them up at night—the thought of running out of money, health issues, the cost of fulfilling their bucket list, and more—I can determine how to address it. 

Next, I ask how much retirement savings they would need to feel financially secure. Often, people don’t know. They have a number in their minds, but it’s not based on anything concrete. When we drill down and look at lifestyle, purpose, family obligations—the whole nine yards—that amount may be more or less than what they quoted. But here’s the thing: we actually figure it out. 

Another crucial question: What amount of income do you need to live comfortably? This can be tricky—we’re not talking about how much they need while they’re still working and contributing to a 401k. We’re talking about how much they need in retirement, when their circumstances may be different. 

Without answers to these questions, I can’t devise a plan—not a good one, at least.

Of course, that doesn’t stop many firms from doing so anyway. Some even use robots. Answer those generic questions, push a couple of buttons, and voila: your retirement plan is done. That may be just the right solution for a fast-food drive-through, but it’s certainly not the way to go for retirement planning—particularly if peace of mind is the goal. And it should be. 

My book, You’re Retired. Now What? provides more insight on creating a retirement plan that prioritizes peace of mind and personal success. You can learn more about it here.