Keen On Retirement™

If there's one thing that successful people are good at it's ... continuing to succeed! You've done well because you've always kept your eye on the next target, whether it's a bigger promotion, a more comfortable house, or more money to save and invest for your family's future. In financial services, we often call these prime working years the "accumulation phase." High achievers who want more from life go get it. They work hard, top off accounts, and diversify their assets until ... Well, until what? Until you've hit your number? Until the kids have moved out and you and your spouse can focus on retirement? Until you're financially independent and don't need to work anymore? Affluent folks who don't think about what their money is for often find themselves stuck in the accumulation phase far longer than they need to be. So, if you already have a million or two or more waiting for retirement, it might be time to stop earning "more" money and start doing more with the money you already have.

"Save more than you spend" sounds like a timeless piece of money advice, as true today as it was two hundred years ago. But in the mid-1800s, many folks believed you needed to spend your money as soon as possible. In fact, saving too much back then could lead to financial ruin! That's just one example of how Americans' attitudes about money have evolved throughout history. But it's not just rules of thumb and hand-me-down wisdom that's changed. It's the nature of money and our relationship to it. On today's show, we welcome author Joseph S. Moore to discuss his new book, How to Get Rich in American History: 300 Years of Financial Advice That Worked (& Didn't), and the surprising ways five money philosophies have shifted over time.

"Ute" (SUV), "chips" (French fries), "sunnies" (sunglasses), and "mates" (friends) are just a few of the slang terms I picked up earlier this year when the Keens visited our family in Brisbane, Australia. Another was "super," which is short for "superannuation." This mandatory savings program is central to Australia's retirement planning. And recently, President Trump floated the idea of implementing a similar program here in the U.S. On today's show, we discuss if taking some inspiration from our friends Down Under could provide a "super" solution to Social Security's looming insolvency and help more Americans build their nest eggs for retirement.

As I've discussed in my recent blog posts, many of the most important retirement choices don’t happen on a spreadsheet. And, as you and your advisor navigate the complex money decisions that touch on your feelings, your relationships, and your goals, you'll probably start to see that these decisions also extend beyond the horizon of your own retirement. But rather than asking yourself what you're planning to leave behind, a successful wealth transition should answer the question “What are we preparing the next generation to handle?”

"Tom and Linda" are a married couple. They're both 55-years-old. Tom works as an operations manager for a regional manufacturer, and Linda works in corporate finance. They are both targeting retirement at age 65. Complicating that 10-year runway is a situation that's becoming more and more common among Tom and Linda's generation: they're "sandwiched" between taking care of Linda's parents, who are in their early 90s, and their 25-year-old son, who is still living at home with them. On today's show, we explain how comprehensive financial planning can help couples like "Tom and Linda" manage complex, multigenerational family variables while maintaining progress towards their retirement goals.

In my recent blog posts, I've tried to broaden the retirement conversation beyond running the numbers and optimizing projections. I want seniors to keep their lives at the center of their financial planning and let their goals guide more of their decision-making. But even the most carefully considered decisions, and the best-laid plans, eventually run into real life. And that's the true test of a financial plan. You don't have to do a lot of math and projecting to figure that you'll be OK in retirement if the markets are roaring, your health is good, and your house is sturdy. But are you prepared for market volatility? An unexpected diagnosis? A major home repair? Will you be able to handle disruptions without being forced into bad decisions? To answer "Yes" at these critical moments, your financial plan doesn't need to be "perfect." It needs to be resilient.