Internal vs External Scorecard

Internal vs External Scorecard

Warren Buffett once said:

“The big question about how people behave is whether they’ve got an inner scorecard or an outer scorecard.  It helps if you can be satisfied with an inner scorecard.”

The scorecard he’s talking about is how you measure success in any given endeavor.  Are you playing your game or someone else’s?  Do you compare yourself to others and try to win based on what they or the rest of the world think of you?  Or do you focus on the things that matter to you and judge your success based on the goals and metrics that you’ve set for yourself (i.e. your internal scorecard)? 

You can “succeed” with either scorecard.  It’s just a question of whether or not that success is likely to bring you happiness and fulfillment.  Most people use a combination of both scorecards, but during the first two-thirds of life the external scorecard often wins.  As a student, you had a literal scorecard and it measured how well you did compared to the other students and whether you reached the milestones of success set by the school.  You likely focused on that scorecard to please your parents or gain acceptance into college or a career. 

During your working years there’s pressure to focus on the external scorecard as well.  Are you the top salesman?  How much money do you make?  What is your job title?  How much is in your 401k?  What professional designations do you have?  What industry awards have you won? 

And since we use the external scorecard at work, we often use it in our personal life as well.  How big is your house?  What kind of car do you drive?  What brand of clothes do you wear?  Where do you vacation?  Are your kids in private school? 

There’s nothing inherently wrong with any of those things, but if the only reason you want them is to please others or win some foolish game of status or achievement, then you’re winning at the wrong game.  It’s possible to look totally successful on the outside and be a mess on the inside.

The internal scorecard and retirement

When you retire, you buy yourself the freedom to design your own game and set your own rules.  You get to decide what constitutes a success.  This is a much more rewarding game to play and it is more likely to result in happiness and fulfillment, because the metrics you’re focusing on are the things that are important to you.  It takes work, however, because you need to create the game and set the rules.  That means deciding what you really want out of life and then holding yourself accountable to achieve it using your internal scorecard.  Your scorecard will look different than mine, so I can’t tell you what to do, but I can give you some general ideas on how to do it.  Below are a few resources that can help.

Ebook:

A Brief Guide to Retirement Bliss

Articles:

Video:

For lasting happiness, get off the hedonic treadmill.

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What won’t change?

What won’t change?

Read this quote from Jeff Bezos and then let’s apply it to retirement.

“I very frequently get the question: ‘What’s going to change in the next 10 years?’ And that is a very interesting question; it’s a very common one. I almost never get the question: ‘What’s not going to change in the next 10 years?’ And I submit to you that that second question is actually the more important of the two — because you can build a business strategy around the things that are stable in time. In our retail business, we know that customers want low prices, and I know that’s going to be true 10 years from now. They want fast delivery; they want vast selection. It’s impossible to imagine a future 10 years from now where a customer comes up and says, ‘Jeff I love Amazon; I just wish the prices were a little higher,’ [or] ‘I love Amazon; I just wish you’d deliver a little more slowly.’ Impossible. And so the effort we put into those things, spinning those things up, we know the energy we put into it today will still be paying off dividends for our customers 10 years from now. When you have something that you know is true, even over the long term, you can afford to put a lot of energy into it.”

What won’t change in retirement?

Bezos was talking about business, but you can just as easily apply his idea to retirement.  Most people spend decades preparing for retirement. If you’re going to do that, you want to make sure that the time, money and energy that you’re investing will get you to where you want to be and will pay dividends for years to come.  So, what won’t change?  What is likely to be just as true 10 or 20 years from now as it is today?  Here are three ideas:

You’ll want to be healthier. I have yet to come across the retiree who doesn’t care about their health.  Everyone wants to be as healthy as possible for as long as possible.  I’m sure the same will be true of you.  So the time and effort you spend on improving and maintaining your health will be well spent.  That could mean making a long-term commitment to eating better.  Or hiring a personal trainer.  Or buying better quality food.  Or going to your doctor for regular checkups.  Or going to a physical therapist to finally treat those aches and pains.  Or flossing (seriously…new research links gum disease to Alzheimer’s).  Or getting that knee or hip replacement surgery that you’ve been putting off.  If it’s an investment in your health, it will pay dividends for years to come.  

You’ll want to be happier. That was true when you were 2.  It was true when you were 20.  It will still be true if you live to be 200.  So think about the things that make you happy and invest in those.  Here are a few suggestions based on happiness research.  Invest in relationships.  Learn new things.  Focus on experiences rather than things.  Work on something bigger than yourself.  Exercise. Meditate or pray.  Spend time outdoors.  Help others.  Get enough sleep.  Forgive. Stop comparing yourself to others.

You’ll want to be more financially secure.  I’m sure everyone has dreamed of winning the lottery, but that’s not what I’m talking about. Financial security simply means you’re not worrying about money at night.  It means having enough to buy your freedom.  Enough to control what you do with your time.  Enough to do the things that you want to do.  Enough to help those you care about if they need help. Enough to take care of yourself if/when your health changes.  Enough to design the kind of lifestyle you want.  The desire for financial security will not change, but it takes most of us a long time to get there.  So be a good steward of your assets.  Save diligently.  Pay off debt. Invest wisely.  Calculate how much you need to fund the retirement you want and make a plan that will get you there.  Hire an adviser if you need help.  Get your finances in order and it will pay dividends (literally) for years to come.  

Quick summary:

Step 1: Decide what won’t change.

Step 2: Invest in those things.

Step 3: Reap the rewards for years to come.

Touch base if I can help.

Be Intentional,

Joe

Three ingredients of a meaningful life

Three ingredients of a meaningful life

Because retirement is a time filled with fun, travel and leisure it is easy to make the pursuit of pleasure your orienting principle.  That would be a terrible mistake.  There’s nothing wrong with pleasure, but it must exist in the context of something deeper.  Let me explain.

Meaning vs. Pleasure

I’ve written before about Viktor Frankl.  He was a psychiatrist and holocaust survivor who wrote the book Man’s Search for Meaning about his time as a concentration camp prisoner.  Frankl founded a school of psychology called Logotherapy (literally “meaning” therapy).  He believed that striving to find meaning is the primary motivational force in humans.  This was in contrast to Freud, who believed that the pursuit of pleasure was the driving motivation.  

I’m in Frankl’s camp.  In my experience with retirees, those who focus on meaning often have a deep sense of satisfaction, purpose and happiness.  Pleasure is a welcome byproduct of their pursuit of purpose. Alternatively, those who can’t find this deeper sense of meaning often self-medicate with pleasure.  Pleasure with no greater purpose eventually feels hollow for most people.  So how can you orient your retirement around meaning?

How to find meaning

According to Frankl, there are three different ways to find meaning in life.  I’ll list those below and then relate them to retirement.

Through projects or work.  All of us are designed to do something meaningful and productive.  Retirement doesn’t somehow remove that need, it just means that you no longer have to base your choice on how much something pays.  Maybe that means working part-time in a field that’s always interested you or volunteering for an organization you’re passionate about.  Or maybe it’s running for your local school board or working on a big community project.  Whatever it is, find something that will engage you and leverage your time, treasure and talents.  What people really need, according to Frankl, is “the striving and struggling for a worthwhile goal, a freely chosen task.”

Through experiences and relationships.  Retirement (and life) is at its best when we have loving, healthy relationships with friends and family and we are engaged in meaningful pursuits.  

Through challenges or suffering.  This one might seem a bit counterintuitive at first, but if you think about the times in your life that made you who you are, that taught you the most, that filled you with pride and a sense of accomplishment, my guess would be that a lot of those times grew out of a significant challenge, heartbreak or tragedy.  Frankl believed that we should welcome challenges and suffering, not because they’re fun, but because they can often bring meaning and growth.  He knew that we can’t always control our circumstances, but we can always control our response to our circumstances.  That from a guy who was in a concentration camp and found a way to redeem his suffering and use it as the soil from which he grew his philosophy, vocation and life’s meaning.

“Between stimulus and response there is a space. In that space is our power to choose our response. In our response lies our growth and our freedom.” – Viktor Frankl

So as you move toward retirement, absolutely plan on doing fun and interesting things. Splurge on yourself. Be a little selfish.  Just don’t treat the pursuit of pleasure as your ultimate goal.  If you do, you’ll likely be disappointed.  Instead, seek meaning and you’ll likely find pleasure and happiness as well.

Be Intentional,

Joe

A short poem that inspires action

A short poem that inspires action

Just a short post today. As spring arrives, I want to share one of my favorite poems with you and encourage you to use this time of warming weather, blossoms and new beginnings as a visual reminder to make the most of your time.  The poem, by A. E. Housman, is below.

Loveliest of trees, the cherry now
Is hung with bloom along the bough,
And stands about the woodland ride
Wearing white for Eastertide  
 

Now, of my threescore years and ten,
Twenty will not come again,
And take from seventy springs a score,
It only leaves me fifty more.

And since to look at things in bloom
Fifty springs are little room,
About the woodlands I will go
To see the cherry hung with snow.
      

You don’t need to be a poetry expert to understand what Housman was saying.  Life is short.  And when you realize how quickly years pass and you do a bit of mental math, you understand that there’s not much time left.  So don’t wait.  Don’t continue to procrastinate and defer your dreams.  Decide what things, big or small, are important to you and then get busy doing them.  Have a great week.  And, as always…

Be Intentional,

Joe

P.S. I took Housman’s words to heart in a literal way last year and went out to Washington D.C. to see the cherry blossoms (see above photo).  Sometimes the best way to “stop and smell the roses” is just to stop and smell the roses.

How to keep loneliness from ruining your retirement

How to keep loneliness from ruining your retirement

Quick summary:  Loneliness and depression are growing problems with the baby boom generation.  In this article I talk about why that is, the problems that it causes and a few ideas on how to fix it.

Loneliness is the sadness you feel when there’s a gap (in quality or quantity) between how much social interaction you have and how much you want to have.  Unfortunately, it’s a growing problem among retirees.  According to the American Journal of Geriatric Psychiatry, loneliness affects between 25% and 60% of all older adults.  The baby boomer generation reported the highest levels of loneliness and isolation.  This is a serious issue because it not only affects quality of life, but can also have severe health consequences.  Why are retirees particularly susceptible to loneliness (and depression) and how can you keep it from ruining your retirement?

Risk factors

As you age, there are a number of things that can affect the quality and quantity of your relationships.  Death.  Divorce.  Leaving the workforce.  Moving.  Physical changes, like arthritis, can affect your mobility and keep you homebound.  Common ailments like hearing loss can make it harder to engage socially.  Women are especially vulnerable because they live longer and are therefore more likely to be impacted by one or more of the previous risk factors.  What are some of the problems that loneliness causes? 

Health consequences

Loneliness affects more than just your happiness and quality of life.  It increases the risk of depression, cognitive decline and dementia.  It weakens the immune system.  It increases blood pressure.  In short, it is linked to poor health and early death.  So let’s re-cap.  Loneliness is more common among older people and the side-effects are no bueno.  How can you keep it from ruining your retirement?  I put several ideas below.

Fixes

Work on your social circles.  A large study by Julianne Holt-Lunstad of Brigham Young University found that those with greater social connection had a 50% lower risk of early death.  Retirement is an amazing time, but it’s also a time where your social network can undergo serious change.  Some of those are by choice (e.g. leaving work, relocating).  Some not (e.g. death of a close friend or spouse).  Either way, you need to be very intentional about making and maintaining relationships.   

Use technology to maintain your independence.  Loss of independence can have a huge impact on social interaction.  If you can’t drive, you can’t meet a friend for coffee.  Thankfully, there’s Uber.  If you can’t hear very well, you’re unlikely to attend social functions or join groups or organizations that require you to interact and converse with others.  Thankfully, hearing aid technology has improved dramatically.  Take advantage of it.  I could give a hundred more examples.  Unfortunately, some people are reluctant to use these technologies because it’s like admitting that they’re “old.”  That’s nonsense.  We all grow old.  We all experience health changes.  Don’t let stubbornness or pride prevent you from using technology to improve your quality of life. 

Consider senior housing, an assisted living facility or CCRC.  People understandably want to age in place and stay at home.  It’s familiar.  It gives a sense of independence.  I get it.  But if your physical limitations mean that your home becomes a place of isolation, maybe it would be better to move into a facility that is designed to provide social interaction, regular activities and assistance with issues that get harder as you age.  People in these types of facilities report being happier and having higher levels of physical, social and emotional wellbeing.  Most clients I’ve worked with over the years have viewed a move into one of these facilities as a positive, even if they were reluctant at first.  In fact, I moved into one myself to see what it was like.  You can read more about that here: So…I moved into an assisted living facility.  Here’s how it went.

Volunteer. I mentioned this in my article last week, but it bears repeating.  Several large studies show that volunteering can have positive effects on your health and well-being.  One reason it’s so good for you is because it provides lots of social interaction.  Not only that, but doing good deeds can reduce stress and lower cortisol levels which can strengthen your immune and cardiovascular systems and ultimately lengthen your life.  Use some of your extra time during retirement to volunteer.  Chances are it will make you healthier and happier.

Evaluate social media use.  Sometimes social media is a helpful way to stay connected with your friends and supplement your in-person interactions.  Sometimes it’s a vortex of negativity that breeds discontent and FOMO (fear of missing out).  If it’s making you happier and more connected, great!  If not, don’t be afraid delete your profiles and invest your energy elsewhere.

Join a local group related to your hobbies or interests.  Like to garden?  See if there’s a local gardening club.  Like to golf or play pickleball?  Join a league.  Like to dance?  There’s a group for that.  Like to travel?  Consider group trips through organizations like Road Scholar.  As with most things, hobbies are better when you can add others into the mix for friendship and fun.

Entertain.  Everyone wants and needs social interaction, but too often they just sit at home waiting for the phone to ring.  They’d jump at the chance if someone took the initiative.  You can be that someone.  As our daughter has gotten older, we’ve invested a little money in our house so it will be a place where her and her friends will want to hang out.  I’m guessing many of you did the same thing for your kids.  There’s no rule against doing that same thing in retirement.  Be the person that has dinner parties, back yard barbeques or movie nights.  Take the initiative and you’ll likely have plenty of people excited to participate.

Get professional help.  If you’re lonely or depressed, get some professional help.  There’s no shame in that.  I’m not a doctor, but I have had several close friends and family members who have struggled with loneliness, anxiety or depression.  In each case they sought help (counseling and/or medication) and saw drastic improvements.  For some reason, there is a stigma associated with mental health in the U.S.  No one blinks an eye when someone seeks treatment for cancer or diabetes, but there is reluctance to treat depression like the disease that it is.  There are a number of effective treatments.  “Cheer up!” is not one of them.  If you need help, get help.

If you have any other thoughts or ideas, feel free to share them in the comments section.  Thanks for reading.

Be Intentional,

Joe

What are you afraid of?

What are you afraid of?

What are you afraid of?  Be honest. We all have stuff that scares us. Maybe it’s something big.  Maybe small.  Regardless of what it is, the outcome is often the same: Stasis.  Fear acts as a roadblock that keeps us from doing something.  Fear is often the great preserver of the status quo.  It keeps you from having that uncomfortable conversation with your spouse or friend.  It keeps you from going to the doctor.  Or asking for a raise. Or joining the gym.  Or dealing with an addiction.  Or moving to a new town.  Or changing jobs.  Or starting a business.  Or making new friends.  Or traveling. These fears, big and small, stop us in our tracks and the longer we allow them to persist, the more insurmountable they seem.

But here’s the thing. Almost every fear that you and I have—those things that have been holding us back for years and that are keeping us from the things that we genuinely want from life—can be overcome with a few seconds of uncomfortable action.  It reminds me of that quote from Matt Damon’s character in the movie We Bought a Zoo:

“Sometimes all you need is 20 seconds of insane courage.  Just literally 20 seconds of embarrassing bravery and I promise you something great will come of it.”

This is true because fear isn’t something that persists for very long in the face of action.  Once you start, the fear subsides and you focus on the action at hand.  In that sense, inaction is much more uncomfortable than action because the fear and anxiety of inaction is a long-term state.  We marinate in it, sometimes for years.  Once you start, however, and push through the fear with a short burst of bravery, the fear subsides and your focus shifts to whatever it is that you’re doing.

I’m writing about this idea because I’ve had constant reminders about it on this trip.  When traveling, especially internationally, there are dozens of little fears that crop up.  Not being able to speak the language.  Driving a rental car in a strange city.  Figuring out the subway.  Those things can make you want to curl up in a ball in your hotel room and cry.  Fortunately, inaction isn’t really a choice.  Scared of driving?  Too bad.  You’ve got 100 cars behind you.  Subway make you nervous?  Unless you want to sleep at the airport, you’d better take a stab at it.  So you do.  And…hey…what do you know!  You figure it out.  Maybe you didn’t do it perfectly, but you survived.  You learned something and built a bit of confidence that you can keep in your back pocket for the next challenge.  More importantly, fear vanquished, you get to do the thing that you’ve been wanting to do.  String a bunch of those together and you have a life that is rewarding and untarnished by regret.

So I’ll ask again: What are you afraid of?  Whatever it is, you have a choice.  You can let it fester and keep you from the life you want or you can muster 20 seconds of bravery and take the first step toward resolution.  Choose the former and you’ll likely be miserable.  Choose the latter and you’ll wonder why you didn’t do it sooner. Good things are just on the other side of an impermanent barrier that can be breached with a few seconds of bravery. What are you waiting for?

“Do not be too timid and squeamish about your actions. All life is an experiment. The more experiments you make the better. What if they are a little coarse and you may get your coat soiled or torn? What if you do fail, and get fairly rolled in the dirt once or twice? Up again, you shall never be so afraid of a tumble.”    ― Ralph Waldo Emerson

Next destination

I wrapped up my time in France yesterday and hopped an early morning flight to Naples, Italy.  From there I came to a little seaside town on the Amalfi Coast called Positano.  I’ve got four days here with a few concentrated on work and a few for activities (e.g. visiting Pompei and Vesuvius, hiking the Sentiero degli Dei (Path of the Gods), etc.).  I’ll get a post up soon filling you in on my time in France.  Thanks for following along!

Be Intentional,

Joe