Tanner Broadwell and Nicki Walsh of Colorado dreamed of giving up the rat race and sailing the Caribbean. So they sold everything they owned, bought a 28 foot sailboat in Alabama, and got help sailing it to the west coast of Florida where they fixed it up in preparation for their big voyage.
But sadly, two days after setting out for the Keys they met with disaster. While trying to enter an unfamiliar port in the dark, with fog rolling in, they hit a shoal, breaking the keel off their boat.
Within minutes it sank, along with everything they owned.
Retirement Is Just The Beginning Of Your New Journey
An experienced sailor could point out dozens of mistakes made by this couple. But the biggest one was believing that once they had achieved their dream of owning a fully outfitted boat, they could just sail blissfully off into the sunset.
In reality, as they pushed off from the dock, they were taking on a new set of challenges and navigating a new set of dangers. As unprepared as they were, they were lucky to escape with their lives.
Unfortunately, many people see their retirement in the same way.
They erroneously believe that when they reach the day they can finally quit their job, they will have arrived at financial nirvana. And never have to worry about money again.
But the truth is, like our sailboat couple, folks entering this phase in their financial life are setting out on a new journey. Navigating this new adventure can be very rewarding, but also full of pitfalls and dangers, even for people who were highly-successful in their earning years.
How An Advisor Can Help During Retirement
Author Michael Kitces observes that when people reach the point where they can begin drawing retirement income, the strategic challenges begin. He says that in addition to issues like changes in asset allocation, planning for the timing of Social Security benefits and retiree-specific tax planning, there are new healthcare concerns like Medicare and other benefits. Additionally, there are housing and lifestyle decisions to navigate, such as aging-in-place vs. a retirement community with continuing care. And then there’s the planning to make sure you don’t outlive your retirement.
These are all decisions that can have a major effect on your retirement cash flow and lifestyle, and so should be discussed with your trusted advisor.
Additionally, because your advisor has provided personal guidance for others who have gone down the path you’re starting on, they can help counsel you on unique decisions specific to your ideal lifestyle scenario.
For example, how to stay within your means now that you have the time to pursue new interests. What the plan will be if you or your spouse have a decline in health. And how do you keep from worrying all the time that your nest egg won’t be enough?
In retirement your focus goes from saving up wealth to enjoying it. Your trusted financial advisor can help ensure smooth sailing at every stage.
Let us help you navigate the waters of retirement. Just call us to get started: 949-600-6060