How To Avoid Being "Rocked" By Retirement

How to Avoid Being “Rocked” by Retirement

Most Americans have visions of what their retirement may look like -- time to pursue avid interests; perhaps continued education, fishing or endless days of golf; relocating to follow the grandchildren; or time to renew the dearest relationships of your life. Well, maybe. Many retirees face a serious time of adjustment, especially if they haven’t planned financially, psychologically, and relationally. When push comes to shove and “retirement” becomes a reality, you may be challenged by some aspects of that adjustment. Here are a few to consider:

1.The Emotional Adjustment May Rock You for a Time.

Walking away from an established role often involves serious head-games. For years and years when people have asked, “So can you tell me about yourself?” you began by saying, “I’m a teacher” or “Well, I’m an attorney” or “I’m in construction.” All of us, to some extent, define ourselves by what we do. When you retire, that fundamental perspective shifts. For a time, we may not really know who we are within retirement’s dramatically different landscape. The adjustment may require time, encouragement of loved ones, or even professional help. Owning a clear plan before you make that transition eliminates uncertainty and makes the whole process easier. We would love to help you put that into place.

2. Spending Down Assets Can Be Difficult.

Whoa! Here’s another twist! For long years, you’ve socked away dollars and managed resources to be able to afford retirement; then, suddenly, you’re spending, pulling those assets in an entirely different direction. Alicia Munnell, Director of the Center for Retirement Research for Boston College, says many retirees find spending their hard-earned resources may initially seem “repulsive” and that retirees may sometimes need to give themselves “permission to spend their money.” The expectations of children, grandchildren or loved ones, who may or may not be anticipating some kind of inheritance, may very well increase anxiety issues.

3. Building Wealth Is Only Half the Battle.

Accumulated wealth is no guarantee of long-term comfort. If you don’t believe that, you can look at the majority of retired NFL players or lottery winners! Even before you take that first step into retirement, you should have a clear plan in place to conserve your assets, to absolutely maximize the value of every available dollar. Chasing dreams recklessly -- meaning “without a plan, established priorities and/or clear direction” – may result in your eventually waking up penniless.

4. Medicare Doesn’t Pay It All.

Successful retirement planning often involves understanding that medical expenses may still be a major concern even with Medicare. Hearing aids and dental care can be two leading examples of expensive issues where Medicare won’t help.

5. Very Few Retirees Relocate.

There may be lots of talk about moving to follow grandkids or to sunbathe in warmer climes, but very few people do. According to the U.S. Census Bureau, only one out of every 100 retirees, age 65 and over, moved to a different state from 2009 to 2013. You don’t want to just stumble into retirement. The prerequisites of a healthy retirement -- especially the process of accumulating wealth to achieve a quality life-style – require time and careful planning. Give us a call to discuss your options. We would love to help.

Sources: (1) Brandon, Emily. “10 Surprising Facts about Retirement” U.S. News & World Report. Feb. 17, 2015 (2) Cussen, Mark P. “Journey through 6 Stages of Retirement” Investopedia. Feb. 17, 2015

Investment advice is offered by Horter Investment Management, LLC, a Registered Investment Adviser. Insurance and annuity products are sold separately through TWP Financial. Securities transactions for Horter Investment Management clients are placed through Pershing Advisor Solutions, Trust Company of America, Jefferson National Monument Advisor, Fidelity, Security Benefit Life, ED&F Man Capital Markets and Wells Fargo Bank, N.A.