Financially Speaking
Over the years, I’ve written many articles about things we all face, including topics expanding on financial planning, investing for the future, and educating our children, but today it’s about retirement. As I write this on May 22, the news is pretty much the same: inflation, securing our southern border, the Russia-Ukraine war, and tensions with China. However, to round out the current events, conflict over raising the debt ceiling and how the U.S. will pay its bills are making headlines.
Beyond the noise, today, I’m writing about my upcoming retirement after more than 44 years in the financial industry, including 38-plus years shepherding Common Cents Planning. In addition, I’m celebrating my 41st wedding anniversary. For all of you who have owned a business or worked countless hours at work, you know you couldn’t have done it alone. You need to have a great life partner — someone with whom you can share your dreams and sorrows as you enjoy the journey called life.
When you are younger and just starting out in your career, you realize the importance of having someone, a spouse or partner, who can handle things at home while you pursue success. The buzzword today is work-life balance (I’ll leave this topic for another issue). To have a successful retirement, you may realize it takes a lot more work to get to the end. As you raise a family, it seems like a marathon while you are going through it, but at the end, you look back and realize that it felt more like a sprint.
When meeting with clients, I have always counseled that you have to retire to something. There are those who retire and are just happy to be done working. They were ecstatic initially, but afterwards found something was missing. Two people come to mind: a business owner and a union worker for a large company. I recently spoke with the first client, a smart and energetic man who sold his business after 30 years. He felt like something was missing after this major life change. He thought golfing several times a week would be great, but he wasn’t enjoying it as much as he had expected. Golfing became more like a job. (Go figure.) Three months later, he found himself starting to watch daytime TV. We discussed that if he didn’t find a new purpose, he would become old before his time.
The other gentleman who worked for a large company was looking forward to never having to punch a time clock again. Leading up to his retirement, I asked what he was going to do once his career was over, to which he responded: “I’m going to sleep.” He had been getting up at 5am for his whole career and just wanted rest. I said that sleeping could be nice for a couple of days, but what would he do after that? He maintained that all he wanted to do was sleep. Today when we speak, it’s difficult to describe the change in his voice and overall demeanor. Honestly, he seems old. Do you see yourself in either of them?
On the contrast, I have worked with people who retire and are busier than they have ever been. If you are still working, this statement may seem foreign. When I meet with clients after they have been retired for a year or so, I always ask them how they are doing. The answer I get most often is, “I’m so busy, I don’t know how I ever had time to work.”
Most of our clients who have already retired have the means to have a wonderful life. We have always said: “Health is the first wealth.” If you have money but poor health, then retirement is difficult to look forward to. After health, money drives retirement.
Our clients have planned, sacrificed, and worked hard so their retirement years would be fun and stress-free. A common goal in retirement is to travel during the early years of good health. Some plan trips every few years with their entire family, so they can see the joy on their kids’ and grandchildren’s faces. Some people spend time in retirement helping their children by babysitting the grandkids, which allows their children to save money on daycare and have peace of mind that their kids are safe. Some clients have expressed that they look forward to completing their “honey do” list, those things that you just don’t get around to, since you are swamped at work. Maybe you’ll be like Clark Griswold in “Christmas Vacation” and will fix the newel post. We all have a list of things that we will eventually get around to.
Financial freedom allows you to do the things you have always dreamed of doing. Some of our clients have made giving back to their communities a priority. Some volunteer at food banks or homeless shelters, while others find purpose with their church or mentoring young adults. As you plan for your retirement, in addition to accumulating money, think what else will bring purpose to your life or those around you.
On the flip side, there are those who just haven’t planned well for retirement. I’m not talking about those in minimum-wage jobs. I’m referring to those who always lived above their means. They always have the latest gadget, the biggest TVs, the exotic vacations, and just live for today. I will always remember a doctor with whom I met to do a financial plan. He lived in a nice community, had a great income, but he didn’t save for their future. We discussed setting up a budget so we could rein in their expenses, but he would have none of it. He said they enjoyed fine wine and eating out four nights or so every week. He said that he was not worried about their future as it would take care of itself. That was one of the craziest things anyone has ever said to me. We did not work with him after presenting his financial plan, as he did not want one.
As I look back at my career, I followed the advice I have always provided my clients. That is, to have a plan and work the plan. Anyone who has ever started a business knows that the first three years are the toughest. If you can survive that, then maybe you will succeed.
I think the lyrics from “My Way,” which Paul Anka wrote for Frank Sinatra, say it best:
“I planned each charted course
Each careful step along the byway
And more, much, much more
I did it, I did it my way.”
I’m blessed to have met Dee 44 years ago down the shore and to celebrate our 41st anniversary today. Dee allowed me to pursue my passion and helped me to become successful. I was able to focus on my career while she stayed at home in the early years to focus on our children. While this isn’t my last article, I’m starting the next chapter of my life by heading to the beach, with a good book, chair, and favorite beverage.
Fred Dunbar, CLU®, ChFC®, RFC®, AIF®, is the former President of Planning Directions, Inc., a registered investment adviser, and Common Cents Planning, Inc.. Securities are offered through Commonwealth Financial Network, member FINRA/SIPC. Fred may be contacted at 800-647-0762, by e-mail at fdunbar@commoncentsplanning.com or by mail at 239 Baltimore Pike, Glen Mills, PA, 19342.
This commentary is meant for general informational purposes only and is not intended to be a substitute for professional financial, tax or legal advice. Investing involves risks including the potential loss of principal. Past performance is no guarantee of future results.
