by Joe Hearn | Sep 4, 2023 | Lifestyle Design, Retirement
We dropped our daughter off at college (she’s been doing great) and that means that my wife and I are now officially empty nesters. In my last post, I discussed the emotions that accompany major life transitions like empty nesting or retirement. Today let’s look at some of the other challenges you can expect when moving into a new phase of life as well as how to overcome those challenges and make the most out of your new chapter.
Financial Adjustments: Transitions usually impact your finances in a variety of ways. Expect the most change as you move into retirement, because that transition affects both income and spending. You give up your regular paycheck while also having to figure out your new budget and spending habits. Throw in decisions regarding investments, pensions and Social Security benefits and you can see why moving into retirement usually means major adjustments to your finances.
Social Changes: Moving into a new phase of life usually brings changes to your social network. The absence of daily interactions with coworkers or the social circle that comes with a particular phase of life (such as parenting) may lead to a sense of isolation. Building new social connections and finding meaningful social activities can be important for maintaining a fulfilling social life in retirement.
Time Management: It’s not unusual for people to struggle to use their time effectively and find fulfilling activities as they enter a new phase in life. Part of that is just getting used to new schedules and routines. Part of that is filling the void left by things that were removed (e.g. work, interactions, commitments, etc.).
Health and Well-being: Because time marches forward, we’re a bit older with each new phase of life. That generally means a decline in your health and physical abilities. But it can also mean less stress and more time for things like exercise. Use the extra time to stay active and to focus on your physical and mental well-being.
Role Adjustments: Retirement often involves a shift in roles and responsibilities within your family. For instance, transitioning from parent to grandparent or assuming a caregiving role with aging parents. These role adjustments can bring both rewards and challenges as everyone adapts to new family dynamics.
Personal Identity: For many, a significant part of their identity is tied to their profession or the roles they played as a parent or caregiver. Retirees may need to explore new aspects of themselves, find new sources of fulfillment and redefine their sense of purpose.
Planning for the Future: Reaching retirement can feel like you’ve arrived, but there is still planning that needs to be done. This may involve estate planning, making healthcare decisions and ensuring financial security for the later stages of life. Navigating these complex decisions can be an additional challenge during the transition.
So those are some challenges we face as we move to a new phase in life. How can we overcome those challenges and make the most of the new opportunity?
Set Clear Goals: Take time to define your goals and aspirations for this new phase of life. Identify what you want to achieve, experience or learn. And, if married, don’t forget to make sure you’re on the same page with your spouse. Setting clear goals can give you direction and purpose as you navigate the transition.
Plan Financially: Evaluate your financial situation and create a realistic budget based on your retirement income. Meet with your financial advisor to ensure your financial resources align with your goals. Financial security will provide peace of mind and enable you to make the most of your retirement.
Pursue Interests, Activities and Hobbies: One of my 8 Habits of Successful Retirees is to retire to something, not from something. Have a plan for what you want to do during retirement. Engaging in activities you are passionate about can help you stay mentally stimulated, socially connected and provide a sense of purpose in your new phase of life.
Stay Active and Maintain Your Health: Prioritize your physical and mental well-being. Adopt a healthy lifestyle by engaging in regular exercise, eating nutritious meals and getting enough sleep. And stay socially connected by cultivating friendships, joining clubs or organizations and participating in activities in your community.
Travel and Explore: Take advantage of the flexibility and time that retirement offers to explore new places and try new things. Travel can broaden your horizons, provide new experiences and create great memories with friends and family.
Volunteer: Consider volunteering your time and talents at organizations or causes that align with your values. Contributing to your community can give you a sense of purpose, help you stay engaged and make a positive impact on the lives of others.
Learn and Grow: Embrace lifelong learning and personal development. Enroll in a class or workshop that interests you. Pick up a new hobby that sounds fun. Learning and doing new things can keep your mind sharp, help you meet new people and generally make life more fulfilling.
Cultivate Relationships: Nurture your relationships with family, friends and loved ones. Be intentional about spending time with them and creating new shared experiences. Additionally, seek out new social connections by joining clubs, groups or activities where you can meet like-minded individuals.
Be Flexible: Be open to change and embrace the flexibility that retirement offers. Stay open-minded and willing to explore new possibilities. Take every opportunity to understand yourself better and make adjustments as necessary. Adaptability and a positive attitude can help you navigate any challenges that arise and make the most of every opportunity.
Be Intentional,
Joe
by Joe Hearn | Aug 4, 2023 | Retirement
Our daughter graduated from high school a few months ago and is heading off to college soon. Needless to say, we’ve been filling our long summer days with fun and making the most of the time before she leaves (sorry for my reduced writing schedule!). She’s our only child, so that significant milestone in her life – adulthood – is also a significant milestone for my wife and I – empty nesting. With our whole household moving on to an exciting new phase, I’ve had more time than usual to think about, experience and better understand transitions. And since retirement, at its core, is about transition, I wanted to share a few thoughts. Today I’ll talk about the feelings and emotions that come along with transitions. And in future posts, I’ll talk about changes to be ready for as well as ways to make the most of any new phase in life.
Feelings and Emotions
When going through major life transitions like retirement or empty nesting, you’ll likely experience a wide range of emotions. That’s totally normal. Some that I’ve experienced or seen clients experience include:
Loss/Sadness: Major transitions often mark the end of a significant chapter in your life, and it’s natural to feel a sense of loss or sadness. The absence of familiar routines, roles or relationships can leave you feeling sad or nostalgic. I’m proud of and excited for our daughter, but I’d be lying if I said I wasn’t feeling a bit melancholy about seeing her leave.
Excitement/Enthusiasm: While it’s normal to marvel at how quickly time has passed and mourn what gets left behind, it’s also common to experience excitement or enthusiasm about what lies ahead. Embracing new possibilities, pursuing personal interests, exploring different paths and connecting (or reconnecting) with those important to you can evoke a sense of adventure and anticipation.
Fulfillment/Accomplishment: Major life transitions can provide an opportunity for reflection and a sense of achievement. You look back on certain accomplishments or milestones with a feeling of fulfillment and satisfaction. You reflect on the positive impact you’ve had as a parent or in your career. You think about all the ways you’ve changed, grown and evolved. Sure, you’ll likely have a regret or two. Who doesn’t. But the yin to that yang is typically the satisfaction of having run a good race.
Uncertainty: Life transitions almost always contain an element of uncertainty. When faced with a major change, it’s natural to feel unsure about your future, your purpose or how to structure your time. That uncertainty can lead to feelings of anxiety or unease. It usually passes fairly quickly, however, as you move forward into your new daily routine.
Grief: Transitioning from a busy, active phase of life to a quieter or less structured one can bring about a grieving process. Some may mourn the loss of time, their previous identity or the life they had grown accustomed to.
Relief: On the other hand, some may experience a sense of relief during major life transitions. The stress, burdens or responsibilities associated with raising children or maintaining a demanding career can ease a bit, allowing for a newfound sense of freedom and relaxation.
Loneliness: The absence of daily interactions with children or colleagues can contribute to feelings of loneliness. Adjusting to a quieter home or a less socially active lifestyle may require finding new ways to build connections and create a sense of community.
Identity shift: Life transitions often prompt a reevaluation of one’s identity. Empty nesters or retirees may grapple with questions about who they are beyond their parental or professional roles. This process of identity shift can be both challenging and liberating and it’s why it’s so important to retire to something rather than just from something.
Of course, emotions can vary significantly from person to person. Some of the above are hitting me hard and others aren’t registering at all. There are things you can do to make the transition easier and get the most out of your new circumstances. I’ll talk about those next time. Until then…
Be Intentional,
Joe
by Joe Hearn | Jan 2, 2023 | Lifestyle Design, Retirement
I was listening to a podcast* recently where the guest told a story about a pottery teacher. At the beginning of the semester, he divided the class into two groups. His instructions to the first group were to make the absolute best pot they could make. They only had to hand in one pot, but it had to be perfect. His instructions to the second group were to make as many pots as possible. Their pots didn’t have to be perfect, but they needed to make a lot of them. At the end of the semester, he evaluated everyone’s work. Guess which group made the best pots? You guessed it. Group 2. The group focused on quantity over quality; experimentation over perfection.
That story struck a chord, because it perfectly illustrates something that I talk about fairly regularly here at Intentional Retirement: Iteration is the key to creating your ideal life and retirement.
Experiment. Adjust. Improve. Experiment. Adjust. Improve.
Keep that in mind as you start the New Year. A little real world experimentation is usually better than grandiose dreams on the drawing board.
Be Intentional,
Joe
P.S. Just in case you want a few more articles to drive the point home:
* The podcast mentioned above is Invest Like the Best with Patrick O’Shaughnessy
by Joe Hearn | Nov 28, 2022 | Lifestyle Design, Retirement
I enjoy poetry because it uses an economy of words to convey an important message or feeling. I recently stumbled across a YouTube channel run by a cowboy named Dewayne Noel and I watched a few of his videos. I don’t have horse, so I can’t relate to his vocation specific videos, but a good many of his videos are just simple life advice delivered in a thoughtful, straightforward manner. He started a recent video smoking his pipe and reciting the poem below, which I can only assume that he wrote because a search for it on Google returned zero results.
Am I inside looking out
Or outside looking in?
And can I help but doubt,
That I’m ever going to win,
If I cannot tell whether
I am the spectator or the sport?
This world is very fast,
But I am frightful slow.
Yet I hold onto the past
While in my heart I know
That the past gets left behind
With any fool bound to it.
But my ways are still my ways.
Cause whose else can they be?
So I will weave today
On a loom I built for me
A cloth both course and rustic
With a pattern vaguely primeval.
My Bullet Point Takeaways:
- Let the past go, especially this time of year. Forgive. Mend fences. Or plain just let it go and move on.
- You don’t have to live your life the way everyone expects you to.
- You have agency. Don’t just let life happen. Figure out what you really want out of life and use every tool available to make that happen. Yes, you’re busy, but carve out a few hours between now and year-end to sit with your thoughts, reflect on your past and plan for your future. Then start weaving.
- Your path doesn’t need to be perfect. The cowboy poet’s pattern was “course and rustic.” But it was his.
Just a few thoughts that hopefully offer a little encouragement or inspiration as you reflect on this past year and start planning for the next.
Be Intentional,
Joe
by Joe Hearn | Aug 26, 2022 | Lifestyle Design, Retirement
How long do you have until retirement? Twenty years? Five years? Already there? With your answer in mind, read this quote by Shane Parrish:
“The longer the time frame for results, the less you need intensity and the more you need consistency.”
In other words, if you have a long time to go until retirement, then consistent, daily progress is important. It’s about little wins that get you closer to your goal. It’s about harnessing the power of compounding for an exponentially richer life. And not just financial compounding, but lifestyle compounding in areas like relationships, health, hobbies, travel and purpose.
But if you have a short time to go until retirement, then intensity is the name of the game. Especially if you’re behind where you need to be. You can’t afford to play the long game. You need to take bold, sometimes drastic action. One of our 8 Habits of Successful Retirees is to “Live with a sense of urgency.” This is true for all of us in that we want to make the most of our time. But it’s especially true for those who have a short runway and need to make a lot of progress.
So how about you? Is it time for consistency or intensity? Either way, each day subtracts from fewer and fewer, so don’t wait.
Be Intentional,
Joe
by Joe Hearn | Jun 22, 2022 | Income, Retirement
One way to think about retirement is as an equation. Kind of like A + B = C. Except it’s more like A + B + C + D + E + F + G + H = I. “I” is your ideal retirement. Your ideal life. That’s the goal. The stuff to the left of the equals sign is what makes “I” possible. Those are the variables. They call them variables because they…wait for it…vary.
The variables are things like when you retire, how long you live, how much you spend in retirement, how much you’ve saved, how well markets perform, when you claim Social Security and how much you spend on healthcare.
Another important variable is inflation. It can have a huge impact on your plans. If inflation is low, all else being equal, retiring (and staying retired) is easier. If inflation is high, it’s tougher. As I’m sure you’ve noticed, inflation is pretty high right now. Like “Willie Nelson on his tour bus” high (figuratively speaking). Inflation is the highest it has been in 40 years so your income in retirement will buy less than it used to.
So how do you keep inflation from derailing your retirement? You solve for “I.” You remember “I.” That’s your ideal retirement in the equation above. Unfortunately, if a key variable like inflation changes, the equation no longer adds up to “I”. Different inputs will equal a different output. So you need to adjust one or more of the other variables to compensate. If inflation doesn’t stay elevated for long, then changes might not be necessary. But if inflation persists, you may need to adjust somewhere else. For example, you could save more. Or retire later. Or pay off debt, cut retirement expenses, delay Social Security, change your asset allocation, protect against sequence risk, reduce your withdrawal rate or work part-time in retirement.
You have lots of options to keep your plans on track. And that’s my point. This article isn’t a deep dive into the “How To” of financial planning. It’s just a reminder that when one variable changes, it’s not the end of the world. In fact, all the variables will be changing all the time. That’s why retirement planning isn’t a “set it and forget it” proposition. You need to make constant adjustments. Right now that means adjusting for inflation. A year from now it will be something else. Ditto for 5, 10 or 15 years from now.
The world is constantly changing. That means elements of your retirement plan will need to change as well. If you can make those changes yourself, great. If you need to hire someone to help you, that’s fine too. The important thing is to have a detailed plan that evolves as needed to get you to where you want to go. Do that and you’ll have a secure, meaningful retirement doing the things you want with the people you love.
One quick thing before I go. When we plan for inflation, we’re planning for a long life. We’re trying to protect ourselves against the risk that we’ll live a really long time and things will get much more expensive. And planning for a long life is important, but it’s also important to plan for a good life. After all, what’s the point of having those extra years if you’re not enjoying yourself. I just posted a new video to the Intentional Retirement YouTube channel that discusses how to add life to your years rather than just years to your life. To watch, just click the link below. And if you haven’t already, be sure to click “Subscribe” when you visit our channel. That way you’ll be sure to see the latest content when it’s available. Thanks!
YouTube Video: A Good Life vs. A Long Life
Be Intentional,
Joe
