7 Deadly Sins!

WILL I HAVE ENOUGH MONEY??

 

That's definitely the number one concern of anyone facing retirement.      We all like to think that we have adequately planned for our retirement, but for most Boomers, it's frightening to think that I might outlive my money.  A new book, "The 7 Deadly Retirement Sins" by Ryan Zacharczyk, CFP offers some excellent tips to ensure your money doesn't expire before you do.    The first part of the book is a fictional account of a compilation of many retirees who have faced several of the same issues we all do in retirement.   It's just to give you a little insight into what others are facing.

 

The 7 Sins according to Mr. Zacharczyk are:

1.  Retiring too early or living above your means.

2.  Improper Investment Asset Allocation.

3.  Collecting Social Security at the wrong time

4.  Working with the Wrong Advisor or No Advisor

5.  Paying too much in Fees and Expenses

6.  Trying to Time the Market

7.  Lack of Health Insurance

 

Overall, I felt he made some excellent points regarding retirement planning and the only one I disagree with is # 3.   He advocates holding off as long as possible to take Social Security (SS).  I disagree as in most cases it will take a person 7 to 8 years to recoup what they could have gained in taking SS as soon as possible.   My thoughts on taking it early are:

 

1.  You may not live until full retirement age.

2.  SS may no longer be available.

3.  The present value of money.

 

Obviously, if SS is going to be your only retirement income, you may want to postpone it as long as possible.

 

BOTTOM LINE:   You can never over plan for your financial security in retirement; so, why not take a few hours and read his book.   It's an easy read with some very insightful tips.

 

For additional info go to:

www.amazon.com/The-7-Deadly-Retirement-Sins/dp/1938686004

The Retiring Mind

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It's not all about the money!

Have you saved $2,000,000?

Is your IRA protected?

Do you have enough money to live another 30 years?

Most of the books about retirement planning deal with the financial aspects of transitioning to retirement and totally ignore the critical psychological and emotional problems that we face as we leave our professional life.

Don't get me wrong -- you've got to have the money to cover your basic needs as having financial peace of mind is wonderful in retirement. But, many of us have trouble dealing with the psychological let down of not working and not having to deal on a daily basis with the 'thrill' of working....that addictive charge we got when we met a deadline or created a new product.

Yes, I'm one of those weird retirees.......a highly-charged Type A, achievement junkie who freely admits that sometimes I still miss working. What makes it even more difficult to discuss our emotions regarding our loss, is that most workers are envious of us having escaped the daily 9 to 5 prison.

I liked this book "The Retiring Mind" because Dr. Delamontagne highlights several examples which helped me better understand the loss I've felt since not working. His discussion of personality type and achievement addiction really hit home with me. There's a short quiz which helps you determine which E-personality you are.

While it's a little heavier reading than retirement books which suggest more golf or volunteer work to fill that hole left by not working, it's definitely worth your time.

For additional info: http://www.theretiringmind.com/

If not now, then WHEN?

Are you eligible for retirement now but just can't decide if you should do it?

Are you waiting for a buyout?

Let's face it -- deciding when to retire is right up there with other major life choices like which college to attend, who to marry and where to live. I've been retired almost 5 years and while I still miss the social side of work, I certainly don't miss working in an office setting, nor the petty politics. But "when to retire" is on my mind today because a good friend of mine is facing that decision now.

If she stays one more year, she'll get about $200 a month more plus a larger lump sum, so she's leaning toward that additional financial gain. I did the same thing.....I worked a year longer just to get an extra $125 a month. Big mistake! During that year, I developed some major health issues due to my stressful job. I wish I had a 'redo' on that decision.

More importantly though, the primary question my friend has to ask herself is:
WHAT AM I RETIRING TO?

So, I challenge you working readers to think about your answer to that question and use it as the basis to plan how you'll spend your time in retirement.

For another perspective on when to retire:
http://www.fool.com/personal-finance/retirement/2005/05/12/teaching-yourself-to-retire.aspx

For more info on when to retire, read "ARE YOU READY" at:
http://myretirementadventures.blogspot.com/2008/11/are-you-ready.html

Feeling "Golden" in Retirement

For us Boomers, retirement was referred to as the Golden Years.

The transition from work to retirement was the much sought after carrot at the end of a long career. In all the pre-retirement seminars, the instructor drilled into us the need to prepare financially, but little was said about the emotional challenges that we face in retirement.

For Type A Boomers (like me), the emotional challenges revolving around loss of identity, finding a new purpose for getting up, and replacing the affirmation from doing a good job can be overwhelming. Without that “pat on the back” or “attagirl”, retirees are often left drifting while looking for a new sense of self-worth. I feel that the 5 stages of grief accurately describe what some Boomers feel after retirement; especially nowadays since many Boomers are being forced to accept an early retirement or be laid off. So, they often feel helpless because their choice of when to retire was taken away from them. The 5 stages are: Denial, Anger, Bargaining, Depression and Acceptance. (see http://www.way2hope.org/5-grief-stages-2.htm for a detailed description).

I still miss some aspects of working – and when I admit that -- well, some people look at me like I'm nuts. But that’s quite normal after working for more than 40 years. Don’t get me wrong – I don’t miss it enough to ever go back to working full-time.

To help you successfully make the transition from full time work to full time retirement, you’ve got to find something your passionate about and then plan to incorporate more of that into your daily life. A good article can be found at http://www.alive.com/1549a4a2.php?subject_bread_cramb=5

P.S. - After all that’s been recently taken away from us retirees, I think Retirement should now be called the “Copper Years”.

Your Retirement-Your Choice!

Like everything else in life, your retirement years will be what you make of it -- so when you visualize your retirement, what do you see -- a dream or a nightmare?

I know that many of you are dwelling on your 2008 stock market losses especially since you probably received year-end tax documents with the bad news this week.

When you view just the financial aspect of your retirement, I'm sure for many it does seem like a nightmare.

Don't get down -- instead concentrate on other aspects of your retirement planning -- the things you have more control of like your health, family life, your emotional well-being, your grandkids, how you will spend all your free time. I challenge you not to dwell on the negative, but to actually start planning with pen and paper what you want to do with that extra 60 hours a week you'll gain by not working.

Believe me, I feel the pain of your financial losses -- not from 2008 as I was not heavily invested in the market -- because I had already lost more than$140K in 2000-2001. Sure, it negatively impacted my retirement planning, but I survived and so will you. After having suffered a major illness and being hospitalized twice last summer, I'm telling you from my heart -- if you have good health, you truly have it all and can face any challenge!

Remember: When life throws you a curve ball (like this financial crisis), then HIT IT!

Here's a good article to help you get a handle on your finances:

http://www.ehow.com/how_2206189_deal-economic-crisis.html

p.s. - that's not my account above - luckily, mine went down only about 20%.