Last month, we talked about some practical summer planning ideas: more nuts and bolts. This month, we look at some aspects of the more touchy-feely side of planning. It’s important to remember, money and its accumulation is not an end in itself, rather a tool to accomplish your wishes, whatever they may be.
Retirement Realities
We’ve witnessed over years of assisting clients prepare financially for retirement that a life of leisure can lose its luster after a year or two. Finding new purpose in retirement – whether that’s earning money doing something you’ve always wanted to do, helping a child with their business, assist in caring for your grandchildren, or volunteering with an organization close to your heart – may be where you’ll find meaning or greater fulfillment in this stage of life.
As you approach retirement, sit down with your spouse or a trusted friend and talk about the realities of retirement. How do you want to spend your time on a day-to-day basis? Write down what you want your retirement to look like in detail, include both your big dreams (think travel, once-in-a-lifetime experiences, etc.) and the mundane, centering your days around your values like health/fitness, relationships, creativity, and fun. Going from the structure of a workplace environment to no structure at all is not a recipe for an ideal retirement. We believe adding structure is one key to a healthy and happy next phase.
Legacy
Finally, when planning well for retirement – both financially and emotionally – consider what sort of legacy you’d like to leave. Perhaps a legacy of generosity is important to you, or a legacy of recreation or conservancy, or a legacy of family fun. Whatever it is, start to create an intentional plan to pass along and foster these values in your loved ones.
Consider an example: If you’ve always loved the great outdoors and protecting it for future generations, invite your children and grandchildren to enjoy it with you, and serve in helping clean up the hiking trails or beaches you frequent. You could also set aside a certain amount each year you’d like to give towards conservancy, then invite your family into the decision-making process of where to give.
Again, we also suggest writing what we refer to as an “ethical will.” This is a letter to your loved ones expressing your wishes for them and lessons you hope to pass along. Store this letter with your legal estate planning documents to be shared at the appropriate time.
Unlike some financial planning matters, these more philosophical topics are not a “one and done” thing, but something to consider ongoing as you work to live a life of abundance and purpose.