social distancing

HOW TO RETIRE: PANDEMIC EDITION

photo shows a small wooden wall clock and a calendar with sticky notes and push pins

What a year! The events of 2020 have reached into every facet of our lives. Many careers have been changed or upended.

People working happily at advanced ages have told us they are leery of workplace exposures, so many are on leave or have retired. Others have been displaced from jobs they would have preferred to keep. And some are helping descendants cope with “distance learning” or a loss of childcare options instead of working at jobs.

One friend retired just before the pandemic, planning an ambitious travel schedule. That isn’t happening. And another, who had planned to retire, now works from home: they figure they might as well keep working, since they cannot travel or engage in activities they had planned for retirement.

No matter what 2020 has thrown at you, the basics of retirement planning have not changed. It is a five-step process. We need to figure out…

  1. how much money it takes to run the life we prefer,
  2. monthly income amounts and timing from Social Security or pensions,
  3. lump sums required for one-time goals or needs, like a bucket list trip or boat,
  4. lump sums available from savings, investments, 401(k) plans, and other wealth, and
  5. the sustainable monthly cash flow that might be withdrawn from net long-term investments, after the lump sums are accounted for (we help people with this step).

There are nuances to each step—options to analyze, lifestyle decision to make. Retirement planning works out best when it is a process over time. We have noticed that people learn more about their objectives and their finances as time goes on, and things change. So your retirement plan adapts and changes over time, too.

If the pandemic has shaken things up for you as it has for others—or if it has just gotten to be that time—call or email us when you are ready to work on your plans and planning. Clients, if changes need to be incorporated in your plans, let’s keep talking.

We’re glad to help.

Change: Lasting or Fleeting?

© Can Stock Photo / martinan

The efforts to slow the spread of Covid-19 are reshaping our lives. Work-from-home (WFH), social distancing, and self-isolation mean big changes, with some unforeseen consequences.

We have been thinking and studying some of the impacts on society, striving to understand the effects on commerce and the economy. There are many unknowns.

Fewer people commuting means less traffic past the coffee shop, less wear on automobiles, emptier workplaces. When the virus has faded, will these effects be lasting, or fleeting?

Will work-from-home gain a permanent boost, reducing the long term demand for office space?

Do those who formerly stopped at the coffee shop everyday resume that habit when they begin commuting again?

After enjoying more free time from less commuting, will more people seek to live closer to their work?

“Dinner and a movie” has given way to carry-out, cooking from scratch, and streaming services. What happens when the crisis fades?

What is the future for movie attendance?

Does cooking replace some fraction of restaurant meals?

What effects will these trends have on commercial real estate?

There have been other effects, too. Online shopping got a big boost from mass retail store closings. Weddings, funerals, and other kinds of gatherings have been cancelled or postponed. Some people report an increased interest in improving their health; others talk about using food or alcohol to deal with stress. Are these changes lasting or fleeting?

After the 1918-1919 great influenza pandemic, the Roaring Twenties followed. Were exuberance and celebration a bounceback from the isolation, sickness and death of the pandemic?

We have many questions. What do you think? If you would like to talk about this or anything else, please email us or call.