retirement lifestyle

Case Study: Home Sweet Home

© Can Stock Photo / irina88w

Quite a few clients are reaching the twentieth anniversary of starting in business with us. So the sixty year olds then are eighty now. A lot can happen in those twenty years!

Mr. and Mrs. Q retired successfully a few years into our relationship, a major transition that ended up well. Then they surprised themselves and me when they decided to build a home in a suburban community and leave their city home of more than forty years.

After thoughtfully considering what they wanted, the Q’s built a beautiful new home and never looked back. It was a great move for them.

A dozen years later, the home may not make the most sense for them. Senior living apartments with some services and meals may be a better option in the near future.

In every transition, we look at four kinds of numbers: lump sums coming in, lump sums going out, recurring monthly income, recurring monthly outgo. And we do the arithmetic to sort out how much invested capital will be available after the transition. Then we can figure out the size of ‘the fruit crop from the orchard.’ (By which we mean the cash flow from invested capital, of course.)

We have gone through this process three times for Mr. and Mrs. Q. First they needed to determine if they could afford to retire. Later, the home-building idea had to be framed up so they could make a good decision. Now, we are working on the next move.

One of the interesting parts of our work is that we never make decisions for you. Usually, the key part of a major decision is feelings, not arithmetic. We strongly believe in doing all the arithmetic that can be done. But no computer can decide where you want to wake up every day, or if you sense that maintaining a home has become too great of an effort.

Just as we never forget whose money it is, we never forget whose life it is, either. We will never kid anybody about the arithmetic, nor kid ourselves by thinking we can make better life decisions than you.

Clients, if you face a transition and want to begin framing up a better understanding of it, please email or call us.

Securities offered through LPL Financial, Member FINRA/SIPC.

This is a hypothetical example and is not representative of any specific investment. Your results may vary.

The Very Best Way to Retire

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Have you been reading those articles with titles like “Ten Best Places to Retire” or “The Best Investments for Retirement” or “Six Best States for Retirement Taxes”?

Being in the business of retirement—and voracious readers besides—we read all that stuff. And we talk to scores of people about their retirement plans and scores of retirees as well.

There is one sure thing about retirement: no one but you knows your best way to live in retirement.

The articles are useful only to prompt your own thinking about your own situation. Most retirements are successful, in the sense that people are happier with greater freedom to pursue their interests and control over their schedules. These people often say, “I don’t know how I had time to work”—because they are so busy. One client told us that “work is way overrated.”

Other retirements do not work out as well. We believe there are a few aspects of retirement that successful retirees thought out in advance.

Where to live? A minority of people move to retirement destination locations. Most stay close to friends and family. Others split the difference and travel in winter or adopt a snowbird routine. With planning, you can do what you want to do.

What type of housing? Residential living encompasses more choices than ever before. Some people enjoy yardwork or gardening, or they like to putter in the garage or shop. Others can’t wait to give away the rake and mower. The amenities of a condo or apartment community like a pool or exercise facilities are attractive to some. A townhouse setup with exterior maintenance and care is the right choice for others. Staying in the family home is perhaps the most common option. Where do you want to wake up every day?

What to do? There are as many retirement lifestyles as there are people. Some spend much time with family, attending ballgames and school events of grandchildren, helping with child care or errands. Others are busy with some combination of fishing, hunting, golfing, hiking, traveling, exercising, or boating. Social clubs, meals with friends, bowling leagues, or card parties dot some retiree calendars. Part-time jobs are desirable for an increasing number of retirees, both for a little extra income and for the enjoyment. How do you want to spend your time?

A wise person once said, “Time is what life is made out of. Be careful how you spend it.” Your time, your life. Think about it. We are here to do the math; call us if you would like an office appointment or telephone conference.