While the full impact of the changes to our tax code are still being reviewed and considered, Nationwide has created a helpful, easy-to-read summary for you to view for how it may impact you. Click here to view.
When it comes to investing, the current standard of return on investment (ROI) can be self-limiting, adding pressure that is counterproductive. So much of ROI is not within our control. We can diversify investments––always a good strategy––but we cannot control how the markets perform or how global events affect the markets. Just as meteorologists can predict the weather but still be wrong, we can try to predict and plan for market upheavals, but we cannot control them.
It’s important to balance return on investments with return on life (ROL). ROL is defined as, ‘How well you are doing in living the life you want, with the money you have.”
Here are some key ROL indicators:
An important part of your retirement plan is a discussion of the benefits of working, regardless of age. Retirement is no longer an event––it is a segue into an altered definition of life as you know it.
One definition of “work” is that it consists of actions that bring value to others and meaning to you. While you may feel that you’ve had enough work, it’s probably the underlying issues (i.e., meetings, corporate politics, commuting) that have left you drained and exhausted.
Think about this: many people who go back to work after retirement are motivated by more than money––they are also motivated by the psychological and existential payoffs.
Happy September! I hope that you had a great Labor Day and end to your summer. Another year with summer seeming to fly by and now football is here again. My kids both started up new schools as Leilani is now officially a kindergartener & Joshua is in middle school! Crazy.
We have some exciting things coming up in the fall that I want to let you know about & also want to give an update on markets, the economy & things I'm keeping an eye on, but I will send those in separate emails since I have a lot to share in this email, primarily focused on retirement.
Picture this—it’s Friday afternoon, your work is done, and you have the weekend ahead of you. But what makes this weekend different than any other weekend is that two-week vacation following it. You wish your colleagues well, they express similar thoughts, and you head toward freedom.
Of course, you’re excited! Travel, new experiences, time away from the mundane, and time to recharge.
In the back of your mind, you know it’s temporary and you’ll be back at your desk before you know it. Maybe that’s part of the reason why the time away is special. It’s short-lived.
Now, let’s take this another step.
When it comes to retirement, it’s easy to dream about the perks: sleeping in, traveling, reading a good book, playing golf––name your fantasy. Even if your retirement is fully funded, the reality can be far less fulfilling if you don’t plan ahead.
Repeated studies have shown that people who do not have a rewarding retirement can suffer both physically and psychologically during retirement. Lack of mental stimulation is a primary reason. People are often forced into retirement before they are ready. Others think they are ready, and yet are not prepared for the day-to-day realities of a new lifestyle.
Whether you’ve been told you should retire at 62, 65, or some other age, only you can decide what is right for you. In fact, you may want to reconsider retiring at all––at least in the traditional sense.
Many of us don’t like the circumstances we find ourselves in––and look at retirement as the nirvana we’ve been missing. The truth probably lies somewhere between completely dropping out (i.e., piddling around in retirement) and never retiring (i.e., dying with their boots on).