Beyond Retirement: Planning Your Next Act
Retirement: A milestone many of us look forward to with eager anticipation. The thought of endless leisure, travel, and freedom from the daily grind can be incredibly enticing. However, retirement is much more than just leaving your job behind. It’s a significant life transition that requires careful consideration and planning. While many people focus solely on the financial aspect of retirement, there are several other important factors to consider when embarking on this new chapter of life.
Many clients come to BAS Capital Management saying, “Can I afford to retire?” Sure, they can leave their job and retire, but it also depends on how they want to live post-retirement. I always advise my clients to review non-financial aspects of retiring, so I can better help them with their financial plan.
Define Your Purpose
Retirement often marks the end of a long-held identity tied to a career. It’s essential to reflect on what gives your life meaning and purpose beyond your professional achievements. Consider volunteering, pursuing hobbies, or exploring new interests that can bring fulfillment and joy in your retirement years. Have a clear understanding of how you can continue to make an impact.
Maintain Social Connections
Workplaces often serve as a primary source of social interaction. Retiring can lead to a loss of daily contact with colleagues, which can impact your social life. Proactively seek out opportunities to stay connected with friends, family, and community groups to avoid feelings of isolation. What are your opportunities to stay connected?
Stay Active and Healthy
Maintaining good physical and mental health becomes even more crucial in retirement. Regular exercise, a balanced diet, and engaging in activities that stimulate your mind can help you stay active and ward off age-related health issues. Consider joining clubs or classes that promote physical fitness and mental agility. I suggest that clients add a budget item to pay for gym, golf, tennis, hiking trips, or any other physical activity they might enjoy.
Explore New Opportunities
Retirement offers the freedom to explore new opportunities and experiences. Whether it’s starting a small business, traveling the world, or pursuing a lifelong dream, now is the time to embrace new adventures and challenge yourself in exciting ways. How much should we budget for this activity?
Plan for Longevity
I advise clients to think about retirement planning and estate planning concurrently. By addressing both together, you can create a comprehensive strategy that maximizes the efficiency of your financial resources and ensures a smooth transition of assets to your heirs. Additionally, coordinating these plans can help minimize taxes and legal complications, providing greater peace of mind for you and your loved ones.
When preparing your retirement plan, it’s important to prepare for variables like healthcare expenses and long-term care choices. Many of my clients have traditionally relied on employer-provided life insurance, which will end with retirement. What are your insurance arrangements that cover life, healthcare, and possible long-term care?
Stay Flexible
Life in retirement may not always go as planned, and that’s okay. Stay flexible and open to adapting your goals and priorities as circumstances change. Embrace the spontaneity and freedom that retirement brings while remaining resilient in the face of challenges. Make it a priority to revisit your financial plan at least once a year or whenever significant life changes occur.
Retirement is a significant life transition that requires careful planning and consideration beyond just financial preparation. By thinking about your purpose, maintaining social connections, staying active and healthy, and embracing new opportunities, you can embark on this next chapter of life with confidence and enthusiasm. When crafting your retirement strategy, remember that it encompasses more than just financial considerations—it entails a comprehensive approach addressing various aspects of your life.
Thinking About Working With a Professional to Develop a Retirement Plan?
It’s always best to work with a fee-only financial planner, as they only have your best interest in mind. A fee-only financial planner does not earn commissions or other incentives from selling financial products, which means their advice is typically unbiased and focused solely on your financial well-being.
Fee-only advisors provide transparent fee structures, making it easier for clients to understand how their advisor is compensated. This transparency fosters trust and confidence in the advisor-client relationship. For these reasons, BAS Capital Management is a fee-only planner. We are not motivated to recommend products or services that may not be in our clients’ best interests. BAS Capital Management offers a simple fee structure that’s focused on the service we provide to our clients and this is our sole compensation. Our clients value our commitment to providing objective, transparent, and personalized financial advice that prioritizes their goals and risk tolerances.
Remember that retirement is not the end of the road, but rather the beginning of a new and exciting journey. Start your planning now with a complimentary consultation.