Your Money & Your Life
I just did a web search for “Free Retirement Planning” and was presented with about 6.4 million links of possible interest. Web search is one of the wonders of our modern age, but at some point, more answers don’t provide more clarity. As we all know, the first few were sponsored. Among these was Fisher Investments, which may be familiar to you thanks to their frequent visits to your mailbox. Does paying for search placement or making constant mailings necessarily mean that the viewer/recipient will connect with a good retirement planner?
I’m sure you already know the answer to that question, but regardless of the potential hurdles, it’s likely you need some planning assistance. Before you speak with any planner, though, it probably makes sense to ask yourself a few questions about your own vision of retirement. The first one I ask is, “What will you do on that first Monday morning when you aren’t going to work?” Do you have a clear idea of how you’ll fill your time? Is your spouse or partner ready for more togetherness? As my mother-in-law said to my father-in-law when he retired, “I married you for life but not for lunch”—she certainly loved him but didn’t want him disrupting her long-established routine.
Retirement decisions haven't always been so difficult. In previous generations, a person’s age, sometimes combined with years on the job, determined timing. Many people hated their work and longed to retire – often to a life of doing little or nothing. Perhaps that’s not so surprising since work could easily have been hazardous, physically exhausting, or mind-numbingly boring. Back then, changing careers was rarely possible. Compare that to the present—today’s workforce has a wide variety of options, and one person’s work life might encompass two or three different careers. In fact, a few of us find our jobs so satisfying that we continue working well into our 70’s.
Decisions about when to retire are unique for each individual. DCM has considerable experience helping clients make such decisions. We find that our familiarity with the topic can often be of value. Because we’re a step removed from the situation, our advice is likely to be less emotionally tinged, perhaps somewhat more reasoned, than those directly involved. Financial questions always come up but we're usually able to find solutions that achieve our client's needs. Beyond the numbers, we find ourselves helping clients work through the wide range of options available to today’s retirees. For example, since this generation tends to live longer than their grandparents, the decision might not be when to call it quits as it is what to do next. Having us involved in retirement planning can also serve as a counterbalance to the human tendency to postpone big decisions.
At the most basic level, financial planners are risk managers, so we spend a lot of time looking for ways in which a decision might go wrong. Could retiring too early compromise a client’s lifestyle if they live longer than average? Or could working too long restrict someone’s ability to enjoy life, if a stroke or other debilitating event closes the door on travel or other pleasurable activities? Of course, specific outcomes can’t be predicted, but we can help our clients make good choices after considering a wide range of possible scenarios.
I think our most important role is helping to integrate our clients’ financial decisions with the rest of their lives. This holistic approach is likely the single biggest way our practice differs from those that only provide investment advice. We believe that nearly all life decisions, especially those involving money, are interconnected. That’s why we help our clients address these choices comprehensively. Is retirement possible—now or at what point in the future? If so, is life insurance still necessary? Should long-term care insurance be purchased? What about the mortgage—should it be refinanced or paid off? The list goes on, but once we reach its end, our clients will have the tools to move forward into a worry-free retirement, not simply the what but also the how and why.
Whether you start by engaging a planner or scrolling through free websites, the important thing is to begin the process. Retirement is going to arrive for each of us. At DCM, we have experienced planners who believe it should never come as a surprise.
Warren Ward, CFP®
Senior Investment Advisor
To learn more about Warren, you can read a brief biography here.
Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, Certified Financial Planner® in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements.
This was prepared by Donaldson Capital Management, a federally registered investment adviser under the Investment Advisers Act of 1940. Registration as an investment adviser does not imply a certain level of skill or training. The oral and written communications of an adviser provide you with information about which you determine to hire or retain an adviser. Donaldson Capital Management, Form ADV Part 2A & 2B can be obtained by visiting https://adviserinfo.sec.gov and searching for our firm name. Neither the information nor any opinion expressed is to be construed as solicitation to buy or sell a security of personalized investment, tax, or legal advice.