The first thing you have to do
 Before
you can determine how much money you’ll need, you have
to think about what kind of lifestyle you want to enjoy. You
have to have some idea of the kinds of things you want to
do with your newfound free time.
For some, retirement means having the time to spend in the
garden. For others, retirement means having the time to travel.
Gardening costs very little. Travel costs a lot.
The point is, what you do with your time determines how much
money you’ll need. So you’ve got to sit down,
gaze into your future and ask yourself some questions like:
- When do you want to retire?
- Do you plan on downsizing your home?
- Will you sell your expensive city home
and move to the country?
- Will you be moving to a retirement community?
- Will you rent or own a vacation home?
- Will you spend time in warmer climates?
How long?
- Do you plan on any major purchases or
renovations to your home?
- Will you travel? How often? How far?
- Will you stay in costly hotels or will
a B&B do?
- Will you work part-time while retired?
- Will you become more active in your community?
- Will you get involved in volunteer work?
- Will you be supporting or helping to support
any family members?
- What hobbies will you pursue? What will
they cost?
- Will you join a golf club? Or buy a boat?
- Will there be much dining out? Theatre?
Movies?
- Do you want to spend your capital over
your lifetime or do you want to leave an estate?
Each one of these questions relates to money. How you answer
determines whether you’ll need more or whether you’ll
need less.
Retirement is nothing like what it used to be
Exactly what is “Retirement”? Most dictionaries
say it’s “withdrawal from one’s occupation
or business. One definition even says “withdrawal from
office, business or active life”. Imagine that. Withdrawal
from active life!
These definitions are sadly outdated. Maybe we used to think
of retirement as a gold watch, an end to work and the beginning
of a life of leisure. But better health and longer lives are
changing that.
More and more, retirement simply means the end of a 9 to
5 routine and the freedom to do whatever you want, whenever
you want. For many that means a new career or perhaps an extension
of the old one. And for many, this new freedom could last
a long time.
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| "The secret of
a long life is double careers. One to about age 60,
then another for the next 30 years."
David Ogilvy |
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Statistically, most people who reach age 65 without significant
health problems can reasonably expect to live at least another
20 years. And over one-third of individuals now between the
ages of 55 and 65 will live well beyond the age of 90.
So there are two countervailing forces at work. On the one
hand, we’re living longer, so we’ll need more
savings. On the other hand, we’re working longer, so
we’ll need less savings. As long as these forces are
relatively equal in their effect, everything should work out
just fine.
Important information about our financial planning services can be found at the bottom of our
homepage.
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