When you’re planning a long and complicated journey, it’s always a good idea to follow a map. But sometimes even a sophisticated map, like your phone’s GPS, doesn’t have all the data you need to get where you want to go. A traffic accident, a road closure, or flood can block your preferred path even if satellites or the news haven’t spotted them yet.
But that doesn’t mean your journey is over! There’s a whole world outside the boundaries of your map. And somewhere in all that space there’s another path that will lead to your destination.
Likewise, no financial plan can lead you directly to retirement without a few course corrections over the years. Keep an eye on how your “terrain” is shifting and you’ll be able to prepare for quick stops, major detours, and forks in the road.
1. Life without work.
Sometimes, when the highway turns red on your GPS, there’s no avoiding it. You can see the pile-up coming for miles, and yet you’re still surprised when you get to the jam and traffic grinds to a halt.
Many seniors have a similar experience on the first Monday morning after retiring. Of course, they understood that after they retired they wouldn’t be heading off to work anymore. But the experience of getting out of bed without a schedule full of meetings, reports, and face time with clients is still jarring.
If you’re thinking this could be the year that you’re going to retire, start thinking about what your Ideal Week might look like. Take a blank calendar or a piece of paper, map out a week, and divide each day into thirds: Morning, Afternoon, Evening. See how many of those boxes you can fill in with a mix of exercise, hobbies, spending time with friends and family, and fun. For some added structure, you might add in regular volunteer work, mentoring, or even a part-time job.
2. Life without a paycheck.
Living off retirement assets instead of a steady paycheck can make some retirees feel like they’re always running on empty. Even earning a little extra cash from a side gig or part-time job might not be enough to provide the confidence that retirees need to spend without worry or guilt.
At any stage of a retirement plan, your spending levels are the most powerful adjustment you can make. Give yourself a clean slate in retirement by reviewing your monthly budget. You’ll almost certainly find a few ways to economize just because you aren’t working anymore: daily travel, lunches, new professional clothes, annual certifications. Then, move on to things like streaming subscriptions, club memberships, or second vehicle payments that aren’t a part of your retirement vision. Finally, make a list of some of your big bucket list goals: vacations, new activities to try, moving to a beachfront community, helping your grandkids pay for college.
Some simple back-of-the-napkin math will probably show you that your money will go further than you think in retirement. Bring your new budgets the next time you meet with your financial planner, and you can discuss an annual withdrawal strategy that will help you meet your basic needs and your big goals.
3. Life without certainty.
Clear roads and bright skies can turn rainy, snowy, bumpy, or slippery in an instant.
You might find that the hobbies and the sports you loved on the weekends just aren’t as fulfilling once you’re retired.
Your relationships with friends and family might change.
Your house might need a major emergency repair.
You or your spouse might receive a life-altering diagnosis.
But if you have a financial plan, there’s almost always a way to work with your planner, course correct, and keep moving forward.
Whatever challenges you’re spotting on the edges of your financial map, our suite of interactive Life-Centered Planning and Retirement Coaching tools can help you stay fixed on your North Star. Make an appointment and let’s start plotting a better course to retirement.
