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Scotia Wealth Management

“Retiring to” vs. “Retiring from”

IMAGINE 25-30 YEARS AHEAD TO DO EXACTLY WHAT YOU WANT, WHEN YOU WANT. ARE YOU READY FOR THAT?

May 26, 2022

Don’t confuse retirement with vacation. It’s important you create a plan that’s fulfilling for the long-term, and about more than just having the money.

 

 

Don’t confuse retirement with vacation. It’s important you create a plan that’s fulfilling for the long-term, and about more than just having the money.

I recently turned 60. Five years away from retirement, if you go by the traditional norm. Or five years past it, if you go by what was first promoted back in the 1980s.

Remember the idea of “freedom 55”? It was a great advertising slogan in its day, but is it really doable?

Probably not today, at least not for most of us. People are living longer now, and economic factors have introduced a level of uncertainty into that idea.

Then there’s this – a lot of people still love what they do professionally. I’m one of them. Work still fulfills me. So, I might retire in five years when I’m 65, or I might not. But when I do, my retirement will have a purpose.

It’s important you take a hard look at retirement. Because I’ll tell you what retirement isn’t. Retirement isn’t 20+ years of vacation where you golf, garden, paint canvases and frolic with grandkids. You can only do that for so long before that greater, inborn need for personal fulfillment enters the picture.

That’s a truth I’ve learned while helping many clients prepare for and ultimately enjoy their retirement. Along the way, I’ve discovered the happiest retirees are consistently those retiring “to something” rather than those who retire “from something”.

DON’T RETIRE “FROM”. RETIRE “TO”.

Let me explain what I mean. Right now, I’m employed by Scotiabank. When I retire, I could say, “I can’t wait to retire from Scotiabank!” Or I could say, “I can’t wait to retire to my new job of mentoring the next generation of financial planners, volunteering at Princess Margaret Hospital, and cycling in every province and state in Canada and the U.S.

From or to. Which sounds better?

“Retiring from” sounds like I’m leaving my job without specifying what comes after that. And from what I’ve seen, pre-retirees who retire with a vague retirement dream are often dissatisfied with the reality retirement ultimately brings. Some, sadly, even die sooner.

Too many retirees plan to re-organize their basement, paint the house, play golf, or finally learn to play the ukulele. Don’t get me wrong, those are great goals, but they’re short-term. But once the house is fixed up and you’ve achieved that par 4, then what?

Dan Sullivan of “The Strategic Coach” offers this wisdom: “Always make your future bigger than your past”. And he believes this to be true even during retirement.

HOW DOES A RETIREE MAKE THEIR FUTURE BIGGER THAN THEIR PAST?

A lot of retirees think their best days are behind them. That from now on it’s all about simply trying to stay healthy and live as long as possible.

Personally, I prefer a long life and a fulfilled one. I can’t imagine year after year going by that doesn’t bring some form of personal improvement, whether it’s in the field of education, fitness and activity, philanthropy or family wealth, anything that means growth.

As a financial planner for the past 30 years, I believe I excel at doing what financial planners do: helping their clients:

A) Calculate the amount of money they’ll need to retire comfortably

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B) Determine an appropriate investment strategy for their funds.

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C) Adjust their investment portfolio as life changes.

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But many advisors are uncomfortable helping pre-retirees shape their personal vision of retirement. Who are we to make their life plans for them? And they’re even more uneasy helping recent widows and widowers reshape an entirely new retirement plan once their original vision ceased to be. Can you blame them?

MY PERSONAL EXPERIENCE AND HOW I APPROACH RETIREMENT AS A WIDOWER

As you know, I’m a recent widower myself. Before Mary died, I was petrified to ask a new widow or widower about their retirement goals. I expected a sad and hopeless discussion, and somehow it just felt… insensitive.

Now that I’m a widower, I find myself constantly rethinking my retirement vision. When Mary was here, I thought we had it all planned… together. Now seeing a future that’s “bigger than my past” seems (at times) unbearably daunting. But I owe it to myself, my children and, yes, to Mary, to really make the most of this next phase of my life… solo.

Here’s how I see my solo retirement phase:

Let’s assume I retire from Scotiabank at 65 (remember, I’m now 60) and, fate willing, I die at 90. That means I have 25 years ahead of me. Almost a full 1/3rd of my life. That’s going to require a plan.

The Plan. Step 1: Ask yourself, “What activities am I most passionate about?” Some retirees might say travelling, cooking, babysitting grandchildren, maybe even starting a new business. Others might say volunteering, mentoring, and cycling to keep fit and explore new areas.

When I asked myself, I found I have three passions:

  1. helping widows and widowers with their finances;
  2. staying in peak fitness by cycling every province and state in North America; and
  3. where possible, helping find a cure for cancer.

The Plan. Step 2. Now, how do I turn these passions into activities?

  1. I have extensive financial planning knowledge and know what it’s like to be a widower, so I feel I can apply my professional and personal skills to build a consulting firm that offers financial planning assistance to widows and widowers.
  2. I love cycling and I figure I can ride in Canada during the summer months and move to warmer climates in the southern U.S. and cycle down there in the winter.
  3. As readers know, Mary died of ovarian cancer and it’s become my mission to help, where I can with the cure for cancer, Of course, I’m not going to find the cure myself, but I can participate in fundraising campaigns and start my own charitable trust aimed at providing financial assistance to cancer research projects

The Plan. Step 3. You’ve established the activities. Now put them in a calendar. My former 40 hours of the “work week” are now freed up. I think I’d spend about 15 hours per week cycling and weight training, 20 hours working on my consulting business and the remaining 5 hours devoted to my cancer passion (volunteering and raising money).

That leaves me with about 56 “personal“ hours in the week (giving myself a full 8 hours of sleep a night). Here’s what I’d do with them:

  1. I’ll nourish my brain by reading, listening to podcasts and attending workshops,
  2. I will strengthen my friendships by arranging lunch dates and dinner parties
  3. Finally, and the most important, I’ll stay involved in the lives of my three children who now live in Toronto, New York, and Denver.

Will that keep me occupied and fulfilled for 25 years? I think so, but 82-year-old me might not agree down the line. That’s okay, I’ll make new plans… because I know what steps to take.

IS IT TIME YOU BEGAN ENVISIONING YOUR RETIREMENT?

Determining what you need to save for a comfortable retirement is a relatively simple calculation. But planning your retirement vision is a much bigger project. I suggest pre-retirees start envisioning their retirement 3-5 years prior and ensure that they’re retiring to something… not from something.

Should tragedy hit and your partner dies before or during retirement, throw away the old retirement vision and begin planning a new vision for one. If you find you need help, please give me a call. I will personally help you move forward on your own.

Think of it… the possibility of 25 years ahead to do whatever you want. So… what do you want to do?

The process of finding a financial advisor can be overwhelming. It is our job to make that process simpler and easier.

Dri Financial Group’s proprietary Wealth Navigator Process is designed with you in mind.

Its structured framework helps you make an informed decision and feel confident in our team and management practices before we get started.

We offer you a range of services from creating bespoke financial plans and providing investment advice to helping you take advantage of our investment models. If you would like more information on the Wealth Navigator Process or our team, call me any time at 416.355.6370 or email me at richard.dri@scotiawealth.com.
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This publication has been prepared by Scotia Capital Inc. and is intended as a general source of information only and should not be considered as personal and/or specific financial, tax, pension, legal or investment advice. We are not tax or legal advisors and we recommend that individuals consult with their qualified advisors before taking any action based upon the information contained in this publication. Opinions and projections contained in this publication are our own as of the date hereof and are subject to change without notice. While care and attention has been taken to ensure the accuracy and reliability of the material in this publication, neither Scotia Capital Inc. nor any of its affiliates make any representations or warranties, express or implied, as to the accuracy or completeness of such material and disclaim any liability resulting from any direct or consequential loss arising from any use of this publication or the information contained herein. This publication and all the information, opinions and conclusions contained herein are protected by copyright. This publication may not be reproduced in whole or in part without the prior express consent of Scotia Capital Inc.