One of the most overlooked but critical aspects of savings or achieving any financial related goal is determining why you want to save. That may sound simple, but let me give you an example.
Client: I want to retire at 55.
Client: I hate my job.
Me: What will you do in retirement, especially one that could last a long time?
Client: I don’t know.
The client’s last response is precisely where people begin to run into problems. It’s not that this person wants to retire early, but instead, that she hates her job. Not knowing what she would like to do in retirement could be just as miserable as her current job.
When is the last time that you allowed yourself the time to think about what you would like to do now or in the future?
I believe that a professional, no matter what profession they have built a career within, is going to have a hard time transitioning into a full-time retirement role. My reasons why include;
So how does this tie back to the earlier conversation with the client who wanted to retire because she hated her job?
The hybrid retirement plan solution that I help clients to develop goes something like this;
Bottom line, your hybrid retirement solution is a transitional period from being in a full-time profession that doesn’t support what you really like to do, to a profession that you would like to do. This period also helps to persevere your retirement assets and make them last for a more extended retirement period.
So how does a person begin? Your solution starts with having a conversation with your advisor, letting you know your thoughts, concerns, and ambitions. These conversations are part of the intangible value that your advisor should bring to the table.
Notice how the conversation does not start with asking what your income is or net worth. It’s having a conversation and trying to be of value, which means offering insights that you may not have previously considered.
People must begin to allow themselves the ability to think differently about themselves, careers, and what retirement, in general, could and should look like.
The TAMMA Family Office is more than wealth planning, portfolio management, and tax preparation. We help people figure out how they can have a life that they want by having one conversation at a time.