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In our culture, the main goal of
retirement is to put our working days behind us and devote ourselves
to the pursuit of pleasure. Many find, though, that continuing to
work in some form keeps them active and gives their lives purpose.
Changing your concept of retirement may even allow you to retire
sooner.
Retirement is far different today than what it was for our
grandparents. In those days, life spans were much shorter and work
more physically demanding. Most didn’t even make it to 65, and those
who did were often forced to slow down due to health concerns. No
one ever dreamed of having decades of doing whatever they pleased.
How times have changed! The ‘seasoned citizens’ of today are
energetic, mentally sharp and physically fit. As a result,
retirement should be viewed not as a cessation of work, but as a
redirection of activity. Many are discovering this new chapter in
their lives is even more meaningful and fulfilling than their years
of traditional ‘work’.
When someone wants to be able to retire and stop working all
together, it increases the amount they have to have saved to achieve
that goal. For instance, if someone needs $30,000 a year off of
their investments, they should have $700,000 or more set aside just
for that purpose. Many haven’t built such a nest egg and think they
must work longer before they can retire.
That’s not necessarily true. It all depends on your view of
retirement. Many of the people I know would be bored to death if all
they did was play golf and travel. They’ve reached the pinnacle of
their careers and enjoy staying busy. They want to keep their minds
active.
Changing your view of retirement may actually allow you to retire
sooner. It may be possible to ‘retire’ from your stressful full-time
job and become a consultant in your area of expertise. Doing so
would allow you to better control your work schedule while still
producing an income.
For instance, I was talking with a gentleman yesterday who took
early retirement from a major chemical company, but still works for
that company 20 hours a week as a consultant. He chooses his own
hours and gets paid well for his efforts. Yet he still has free time
to pursue his other interests.
I have another client who retired at 55 who works short-term
assignments in various locations for the same company. It allows him
and his wife to travel and to spend a couple months a year in a
different country. That means he doesn’t have to tap his retirement
money and he has the freedom to only accept the assignments he
wants. Talk about having the best of both worlds!
Earnings from even a part-time position will have a major impact on
the amount of money you have to have set aside. Using the example
mentioned above, let’s say that working as a consultant part-time
brought in $15,000 a year. The result is you would only need $15,000
a year from your investments. So instead of needing a $700,000 nest
egg, you would only need $350,000.
Some seniors use retirement as a chance to pursue a new career
entirely. There may be less pay, but there’s usually less pressure,
too. And if your new career choice doesn’t pan out, you have the
financial freedom to change course. Others might take a sabbatical
from work for a year or so, then re-enter the work place with
renewed energy.
Many seniors who are blessed with abundant resources are eager to
volunteer their time to worthy organizations. Many skills important
in the private sector are even more critical for non-profits, yet
they are often the ones who can least afford them. What a blessing
to be able to invest your considerable knowledge and abilities and
truly make a difference in the lives of others.
Changing your concept of retirement can relieve the stress and
pressure of attaining lofty financial goals. It will allow you to
get more out of life while giving you more freedom. And when you
love your work, it can give you a great sense of fulfillment. It
turns out ‘work’ isn’t a four letter word!
Have a financial question? Send me an email and I’ll personally
respond, free of charge. Go to www.guardingyourwealth.com and click
on ‘Ask Jeff’.
In addition to being a nationally syndicated columnist and Certified
Financial Planning Practitioner, Mr. Voudrie provides personal,
private money management services to clients nationwide. |
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