10 Things You Should Know Before Retiring
- Many people have misconceptions about retirement and what it is really like.
- Take some time to consider things that are good to know before you retire.
- We’ve created a new course to help you prepare for retirement. See details below.
In the last decade or so, we have had at least a dozen clients who, upon retiring, found themselves in situations where parents or other family members were in dire need of help. This came up as soon as they retired. All of them were so thankful that they could actually put in the time to take care of their loved ones, most often their aging parents.
Thinking about that brought to mind an article I saw about the top 10 things people wish they knew before they retired. The article is from Market Watch and the top 10 things are as follows:
1. Don’t plan on having free time. Things may end up happening, especially if you have aging parents, that require much of your time. You may not be able to do some of the other things you planned to do.
2. Long-term care insurance. Have some kind of long-term care insurance in place that will take care of those potentially large medical expenses.
3. Healthcare expenses go up. As we age, healthcare expenses continue to rise and you’ll find yourself paying for many of these out-of-pocket.
4. Structure your own time. We kind of already covered this in number one, but I can’t stress it enough. People tend to think that since you’re retired, they can call you anytime for a chit-chat, or to hang out, only to find they can’t get ahold of you. You’ll probably be busier than you were when you worked.
Free time leaves a vacuum and it tends to fill up with all sorts of other stuff. So, this is a warning. Make sure it’s you who structures your time and that somebody else doesn’t throw all of their junk into your life.
5. The tax game changes. All of a sudden, you’re not paying FICA and Social Security taxes. Taxes go down and in some states income tax goes away. It’s important to take a look at your tax picture and the changes that are happening.
6. Make sure you retire together. It can be a shock after all those years of working, when suddenly you’re thinking you liked it better when you didn’t see each other all day, every day. Hopefully, that’s not the case, but it’s something to consider.
7. Friends are essential. You’re going to need friends, especially if you were primarily defined by your work. Before retirement, your friends were probably work related and they’re often still working. You might need to restructure how you deal with your social networks, make new friends, etc.
8. Stress. Believe it or not, retirement can be very stressful because you’re making a transition to a totally different mode of life. Suddenly, things have different meanings to you and it’s important to know how you’ll address these various aspects of life.
9. Investments. When it comes to investments, we always like to ask which game you are playing. The get rich game, or the stay rich game? If you’re still in the get rich game, you’re probably not going to retire until you start in on the stay rich game. You’ll then structure your portfolio differently—it’s a whole new way to deal with investments.
10. Having few fixed expenses. You’ll want to have the lowest amount of fixed expenses possible. The biggest one, of course, is having your mortgage paid off. You don’t want to have that one hanging on and sucking up so much cash flow. You really want to make life a lot simpler for yourself.
Think on and consider these as you get closer to retirement. By the way, we just created a new course called, Ready, Set, Reinvent, which covers this and a heck of a lot more. If you’re a couple of years out or getting ready to retire soon, this is a great course to consider. Until next time, enjoy.
Gary Klaben is in our Glenview, IL office and serves our clients who are now located all over the country. He has over 30 years of experience and is the author of Changing the Conversation, Wealth of Everything and co-author of The Business Battlefield. Whether advising his clients, mentoring his team, or coaching entrepreneurs, he is always simplifying complexity and motivating others to take the next action that’s right for them.
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