Keen On Retirement™

Sometimes, financial independence just isn't enough. Most folks who've built up a high net worth know, deep down, that they don't need to wait until they're 65 to retire. But they keep working anyway, because having money doesn't necessarily make you worry about money any less. And besides, you're "supposed" to wait until you're at least 65 to retire. Right? Think about it this way: you don't keep playing the game after you've already won! And if you have enough money to fulfill your sense of purpose and secure your needs for the rest of your life, then however old you are, you've won. Here's why the affluent should consider rethinking their retirement timelines.

"I'm going to run out of money." That's the fear that stands between so many seniors and enjoying their Golden Years. That's the fear that delays retirement five years too long. The fear that causes new retirees to pinch every penny instead of buying a new car, joining their local country club, or travelling the world. The fear that leaves so many seniors thinking "Coulda ... Woulda ... Shoulda ..." at the end of retirement. In fact, according to a study by the Allianz Center for the Future of Retirement , 64% of Americans are more afraid of running out of money in retirement than they are afraid of death! Today, I'm going to try to bring one of those fears down to size. Because, unlike dying, your odds of running out of money in retirement can be reduced, if not eliminated, with hard work, diligent saving, and comprehensive financial planning.

You typically don't build up a multi-million-dollar nest egg by timing the markets, cutting corners, or getting lucky. The majority of the folks we work with at Keen Wealth who hit that kind of financial milestone get there because over many years they've collaborated with their advisor on a plan they have real confidence in. Through market swings and the inevitable ups and downs of life, they've worked hard, made adjustments, stuck to their plan, and built meaningful wealth. But as you near retirement, it's not about your number. It's about what your number can do for you. Here's an example of how Keen Wealth's comprehensive planning process goes beyond the math to determine if a $2.9 million nest egg is "enough" for a married couple to enjoy a successful retirement at age 65.

Are you ready to retire? Great! Why? Because you're turning 65 this year? Or 70? Or 75? Because you've hit your "retirement number" and you feel good about your nest egg? Because you like how the markets are performing? Because you finally paid off your mortgage? All these factors can contribute to a positive retirement transition. But none of them should "trigger" a rush into retirement either. Even if you're retiring in the right time frame, you could move too quickly and make some of these common mistakes that planning ahead with an advisor could help you avoid.

What's the biggest threat to the long-term security of your retirement plan? Many seniors would answer, "The economy," or "The markets." And that makes sense. No matter how much you try to control your screen time, financial news will always make a big impression on how you feel about your money. But as nerve-wracking as market fluctuations can be in the moment, in the long run, they continue trending upwards and generating positive returns for most investors. That's why a truly comprehensive plan should be prepared to manage not just market fluctuations, but more personal and less obvious threats that can erode a senior's wealth over the course of a 30-year retirement. The next time you meet with your advisor, discuss how your plan protects you and your money against these five threats:

2025's complex economic picture took on another dimension over the weekend as the U.S. waded into tensions in the Middle East. Setting aside the important humanitarian and security issues I know we're all concerned about, it's understandable that investors might worry about more disruption to their financial plans, especially if they're retired. The good news, from this very narrow perspective, is that the markets have responded well to the potential ceasefire between Israel and Iran. But issues around war, as well as the supply, demand, and production of oil, are always factors that could make Wall Street jittery. Given that we're also still staring down potential tariffs against China, uncertain inflation and interest rates, and deep political divisions at home, should folks be preparing for a bear market? The short answer is yes, because investors should always be prepared to manage the inevitable peaks and valleys of the markets. But rather than making predictions right now, I think it might be helpful to break down the differences between bear and bull markets. A little extra perspective might give you some added peace of mind as you think about your financial planning. To set the stage, when I entered the financial services industry in the early 90’s the Dow Jones Industrial Average was around 3,000. Today it sits at 43,000. The wealth-building opportunities in the capital markets can be very powerful over time if understood accurately. Although, it’s important to note that the returns do not come in a straight line.