We loved recently learning the word for retirement in Spanish …Jubilación! It has a much more festive ring to it than “retirement” or even “financial independence”, as we say in the U.S. In France, they use the word for retreat or “retraite” to define this time of life. We don’t think many of us want to retreat, exactly, or hide away from anything! And in England or Italy, they use a derivative of pension to describe a ‘retiree’ – ‘pensioner’ or ‘pensionato’, while in Spanish, you are a ‘jubilado’! While they all mean the same general thing, we think this transition in life should be celebratory and warmly anticipated without any anxiety or trepidation. As wealth managers at DWM, our goal is to make this transition so easy that you are indeed… jubilant!
So how can this transition truly be smooth and worry-free? We do think that there are some things that you can do for yourself and then some things where your financial advocate, like DWM, can be very helpful. Let’s start with some of the administrative items that come up at “a certain age”. In fact, at DWM, we keep track of the important dates and significant milestones in our clients’ lives so we can remind them of the things that they will soon want to do. For example, at age 50, you can start increasing your IRA or 401(k) contributions each year. At 55, we like to discuss the pros and cons of long term care for you and your family and around age 60 or 62, we like to discuss Social Security strategies and help you with plans to start thinking about Medicare sign-ups. We are always available to help analyze the proper benefits, help you schedule sign-ups or meet with professionals to assist you. We also help with tax strategies and account transitions as you leave your job and need to understand your employer retirement benefits packages. And when you hit 70 and it is almost time to start taking your required minimum distributions from your IRA’s, we are also here to guide you and manage this. There are a few things that need to be done, but we like to educate our clients on the process and then help to guide them through it.
It is also important to make sure that your resources are protected and wisely invested to maximize your success in achieving your goals. Assessing your resources and making a realistic plan will allow you to make the best choices for your future. As wealth managers, we are always mindful of taxes, asset allocations, estate planning and risk management, as we look for ways to make the most of what you have. We want to help you realize your goals with a comprehensive financial plan and a roadmap to success. Money certainly isn’t everything, but having your finances in order and the details understood can make this transition much more worry-free and enjoyable. Looking at all of your goals and assets with honest and realistic expectations will allow your plan to reach its highest potential.
The other question to ask yourself is what is your passion? How would you like to spend your time, now that it is yours to spend? Will you continue working? Will you travel? Will you move to a new home? Some people find that they can now spend their time doing exactly what they have always wanted to be doing, but just aren’t sure what that may be! There are many things to investigate and you can now take some time to explore your options - whether it is continuing to work, volunteer, travel or take up a hobby that might have always interested you. The goal here is to look at it as a wonderful opportunity where you embrace the change and get excited to find a happy “new normal”. It may take some time and some patience to make this adjustment smoothly. Staying healthy, active and engaged with others are all great tips to helping with the emotional transition. You may have to adjust to your new identity and staying busy and connected with others can definitely support you through this process.
This should be a wonderful time in your life and we are here to help in any way we can as you move forward into “retirement”. Just remember, you have earned the ability to celebrate – this is your lifetime achievement award! As your financial advisor, we look forward to helping you look at this time with joyous and resounding JUBILATION!