Keen On Retirement

Early retirement is a goal that's become a very common plot point in the comprehensive financial plans we put together at Keen Wealth. Young Boomers and older Gen Xers who have the means to stop working or downshift into part-time employment want to enjoy the wealth they've worked so hard for while they're still young enough and able-bodied enough to play their favorite sports, see the world, and spend more quality time with family and friends. But there's much more to early retirement than just hitting a number. Several aspects of your financial plan should be fine-tuned and coordinated to ensure that your nest egg supports today's goals while also ensuring your long-term security in the latter years of retirement. Let's take a look at Keen Wealth's five-point checklist for retiring at 55.

Warren Buffett's historic business success and preternatural understanding of the markets earned him the nickname "The Oracle of Omaha." But, as we discussed in a blog post earlier this year, Buffett's life and career can teach folks about more than just market movements and investing principles. That includes estate planning. Since losing his longtime business partner, Charlie Munger, Buffett has been a little more forthcoming about succession at Berkshire Hathaway and his future plans for his large stake in the company. Affluent investors should think about four key public details in Buffett's estate plan as they plan to preserve their own legacies and provide for the next generation.

No two retirements are ever the same. But in my 30-plus years of helping folks navigate the retirement transition, there's one common factor among the retirements that I would consider the most successful. Whether they were achieving an early retirement goal or retiring in the more traditional 65 and up window, the happiest retirees I've known are the ones who were focused on “retiring to” something, rather than “retiring from” work. Folks who just want to stop working because they don't like their jobs often discover that, without a positive mindset and intentional forethought about how they're going to spend their time, they don't like retirement all that much either! As folks near retirement, my Keen Wealth team often suggests that they take a whiteboard or a big sheet of paper and create a blank weekly calendar. Below are ten of the most common "retire to" activities folks are excited to add to their new schedules.

As the founder and editor of HumbleDollar and personal finance columnist at The Wall Street Journal, Jonathan Clements has been providing readers with practical financial analysis for decades. But an article from early June might be the most impactful that he's ever written. Reflecting on his recent cancer diagnosis at age 61, Clements is candid about how facing mortality has forced him to reevaluate his personal, professional, and financial priorities. Sadly, Clements’ story also brought to mind so many folks I've worked with in my career who struggled to find the "right time" to retire, only to have life get in the way. Please, take these lessons from Clements’ experience to heart and don't put off retirement any longer than you have to.

Today's seniors may not have grown up with the internet the way their kids and grandkids have. But you've definitely "grown with" the tech and information revolution. Many boomers were still early in their careers when their employers came online. And as the world has evolved from email to smartphones to social media, they kept pace. Maintaining that curiosity and willingness to experiment with technology can open some exciting doors in retirement. Take time to learn about the latest breakthrough in these four areas. You might find a new hobby or a quality-of-life upgrade that makes life easier, more interesting, or more fulfilling.

When discussing the unique financial challenges that many senior women face, it's important to make clear distinctions between useless stereotypes and scientific facts. As I've written about and discussed frequently on my podcast, there's just no truth to outdated cliches about women needing more help than men when it comes to managing money. And while it may have been more common in decades past for married couples to leave the family's finances to the breadwinning man, that old-fashioned dynamic is rare today. But, according to longevity expert Maddy Dychtwald, it's a fact that women, on average, live six years longer than men. Whatever your marital status is, and however big your nest egg is, women have to be very intentional about how they plan to cover their needs during those extra years. My Keen on Retirement co-host, Steve Sanduski, recently talked to Dychtwald about her new book, Ageless Aging: A Woman’s Guide to Increasing Healthspan, Brainspan, and Lifespan. Their conversation was full of insightful and actionable advice for women who are aiming to live well long into retirement.