Wednesday, January 26, 2022

The After-Party

Ask the CFP Professional

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Yesterday is but today’s memory, and tomorrow is today’s dream. ~ Kahil Gibran 

Question: Fortunately, I’m at a stage in life where I’m financially able to retire, I’m not sure if it’s the right time. Presuming that you work with a number of retirees, what advice can you provide to help me gracefully move from one phase of life to another?  

Answer: Congratulations on reaching this point in your life. Thoughtful planning regarding investments and other assets are likely what has brought you to this place of weighing the options going forward. According to an article by The Senior, “Your Retirement: Don’t be a bored Baby-Boomer,” two in three people enter retirement with little or no thought about what they want to do with their newfound free time. The numbercrunching is straight-forward regarding savings, investments, cash flow and expenses, it’s planning the: after-party” that many people overlook.  

Careers, professions, titles and trappings often are large components of an individual’s identity. A lifetime of work is a cornerstone of who we are in many instances. The fundamental characteristics and values that represent you don’t necessarily change based on employment status. Chances are good that you’ll be the same person after the proverbial retirement party as you were prior to the cake and gold watch. It’s time to create your new normal with a day-to-day life with a look and feel that you design.  

In a client review meeting recently with a couple contemplating this important decision of when to retire, their biggest concern is how to shift into the next chapter. The financial components are all properly in place, it’s the social and emotional elements they will begin focusing on prior to fully exiting their careers. 

Money matters or financial planning is one dimension of life, your current priorities and legacy are two additional aspects that contribute to the happy retirement many of us envision. Taking the time now to think about how your days, weeks, months and years will unfold is an investment that may provide positive returns for years to come.  

There is an 83-year-old Japanese grandma who is the world’s oldest professional club DJ going by the name of Sumirock. She went to DJ school at age 77 and never looked back. Or you could take a “gap year” to find yourself. Purposeful relaxation is an honorable pursuit. One friend is a recently retired attorney who tried a yoga class and is now training to become an instructor. Childhood interests may provide hints as to where your journey may lead. Volunteering may be your calling now that time is plentiful. Educational pursuits purely based on interest rather than grades or career advancement may be fulfilling and less stressful. Now is the time to think about trying new endeavors, leaving no regrets behind. You have nothing to lose and everything to gain.  

Rather than an after-party, my husband became Peter 2.0 with an encore career. His love of people and desire to help others inspired him to start a company that provides flexibility, discretionary income and a sense of satisfaction. Honestly evaluating what makes you happy, pursing that and adjusting along the way is a great approach to planning your personal after-party.  

Including family, friends, and your financial advisor in the thought process as you design part-two is recommended. These retirement conversations can help solidify your plans while not overlooking your own priorities. Those closest to you are likely the best equipped to help put together the pieces of the puzzle of your after-party. You’ve saved diligently, invested prudently and accumulated your nest egg for the future.  

Financial market declines are nerve-wracking, yet they’re not unusual as we’re witnessing. A well thought out plan provides a blueprint on how to convert investments into income and salary replacement or the after-party paycheck. Monitoring risk exposure, the sequence of returns, and the timing of withdrawals are important considerations. We’re happy to run a stress-test to see how your portfolio may react given changes in markets. Start by having a simple conversation with those most important to you and plan accordingly.  

This material is being provided for informational purposes only and has been obtained from sources considered reliable, but we do not guarantee that the material presented is accurateEconomic and market conditions are subject to change. Investing involves risk including the possible loss of capital. Past performance may not be indicative of future results. The opinions expressed are those of the writer as of March 132020, but not necessarily those of Raymond James and Associates, and are subject to change at any time based on market conditions and other factors. “Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements.” This article provided by Darcie Guerin, CFP®, Vice President, Investments & Branch Manager of Raymond James & Associates, Inc. Member New York Stock Exchange/SIPC 606 Bald Eagle Dr. Suite 401, Marco Island, FL 34145. She may be reached at 239389-1041, email: darcie.guerin@raymondjames.com, or by website: www.raymondjames.com/Darcie. 

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