April 9, 2014

What I learned so far about retirement

Seniors Going To Church

Image courtesy of debspoons / FreeDigitalPhotos.net

Inevitably you get to that point in life where you start thinking about retirement. How can’t you? The financial services media bombards you with scary ads. Maybe you have a bad day at work and you start thinking about how things might change. Maybe it just sneaks up on you and you find yourself a little older than you imagined!

Well, my “moment” came a couple years ago and since that time I’ve been doing a lot of reading and research and this blog is the culmination. So what have I learned?

Retirement is different than I thought

First, retirement is a lot different than I thought. I always thought of retirement as an “end.” It was the end of working and the end of getting up early. It was the end of deadlines and pressure. All those things I didn’’t like about life would “end.”

My thinking now has completely changed. I think of retirement as the beginning of all kinds of things rather than an “end”.

Retirement is not as hard as they make it

The financial media creats a sense of fear around retirement. Mostly this is the fear of not having enough money. Fear sells, and some fear is warranted I guess because having enough money for retirement is certainly important.

However, what I have learned is that many people seem to have successful retirements in all kinds of financial circumstances. Money is just one part of the puzzle.

Traditional retirement definition is wrong

My definition of retirement as an “end” was wrong. The traditional definition of retirement as a period of sitting back and relaxing in a rocking chair is wrong. Retirement is a change. It is just another phase of life. It can be anything you want it to be.

You need more money than you think

Even though money is only a piece of the retirement puzzle I have learned that you need more money than I thought in some areas of your retirement life. Think health care as the biggest example.

You need less Money than you think

In some areas of retirement you may need less money than I thought. This is mostly because of the flexibility that retirement may provide. Think housing alternatives, transportation alternatives, travel options, and many others.

Retirement presents many different possibilities

Retirement is about possibilities – many more than I originally imagined.

Work or Retirement Sign

Image courtesy of Stuart Miles / FreeDigitalPhotos.net

We’ll still work

Work is another area where retirement is not an “end” for most of us. Some of us will work because we have to and some because we want to, but either way it is good for us!

You need a money plan in retirement. But…

We need to make and stick to a money plan in retirement, but money doesn’t need to dominate our retirement. Other plans may be as important or more important.

It is more important to plan for what?

It is more important to plan around what is important to you. What do you want to do with yourself? What do you enjoy? You will still have goals, they are just different.

I don’t really want to retire

So, what have I personally learned so far? My plan is still evolving but right now I’d have to say I don’t really want to retire, at least not in the traditional sense. I definitely want to do different things and have different goals. But the key is I want to ““do” and I do still have goals. That doesn’t change.

So what have you learned so far?

Until next time…

Filed Under: General, Personal Development Leave a Comment
December 17, 2013

What about transportation?

For most people transportation is their biggest expense after housing.  This doesn’t necessarily change in retirement or semi-retirement, but you probably do have more options.  This article talks about some of those options.

Lots of Options, Especially in Retirement

There are plenty of transportation options and lots of opinions on what makes sense.  I’m going to concentrate on four.  As is the case before retirement what makes sense for you depends on factors such as your finances, how much you drive, how far you drive, and how precious is your time.  Here are my four options:

  • No car at all
  • New car, replace less often
  • New car, keep it forever.
  • $5000 Used Car, keep as long as possible

No car at all

First of all your financial situation or health may dictate no car.  That isn’t all bad because it certainly makes life less complicated.  You just have to make adjustments to make the car free lifestyle fit into your other plans.

Where you choose to live makes a big difference.  Can you use public transportation?  Can you walk or bike to the store, parks, and friends’ houses?  Can you offer to help a friend with expenses in return for a weekly shared grocery store run and maybe an occasional doctor’s visit?  Cars are expensive and helping that friend may solve a problem for them too!

No car doesn’t have to cramp your travel plans either.  Look into bus tour trips and one stop vacations where you can go to a destination and then take guided tours from that location.  For example some of the national parks have tours where you stay at a lodge and then take tours and use the parks mini bus system to get around.

New car, replace less often

This scenario is similar to what many people do before retirement.  The average American replaces their car every 5 years or so (this is slowly increasing after the great recession.)  As a retired person maybe you can stretch that to 7 to 10 years.  What makes that possible is that many people drive less in retirement and have more time to deal with repairs, whether they have them done by a mechanic or do the work themselves.

New car, keep it forever

This is the natural extension of the above option.  It works well if you don’t drive too many miles, are meticulous about maintenance, and are willing to spend some money and time occasionally on repairs.  Many new cars are lasting for 150,000 to 200,000 miles these days.  If you drive 7500 to 10,000 miles a year that means you could potentially buy a new car at 65 and drive it until you are 85.

Buy a relatively cheap used car and keep as long as possible, then replace

Statistically, this may be the least expensive option beyond no car at all.  It makes sense if you mostly take short trips and don’t mind an occasional break down.  (This isn’t quite as scary these days with cell phones and motor clubs.)  It really helps if you are able to do some of the repairs yourself.

Make a decision and include in your budget

This is a big topic and this article just scratches the surface of possible options and what you need to consider.  More to come on this topic, but I hope it helps you keep thinking outside the box as usual.

Until next time…

Filed Under: General, Money Stuff, Transportation Leave a Comment
December 14, 2013

Life Lessons from an 84 year Old RV Driver

Sometimes you learn lessons that stick with you long afterwards at the strangest times.  Such was the case when I had a short discussion with a sharp 84 year old many years ago.  This article tells that story.

Our Camping Story

It seems like either you are a camper, or you are not and you think people that sleep in a tent are nuts.  Chances are that if your parents took you camping as kids then you go camping when you grow up.  My wife and I have camped our entire married lives, although I admit as we get older we sometimes trade the tent for a cabin.  We haven’t taken the RV route yet, but who knows.

The Bear Tooth Highway

Years ago we had spent a week in Yellowstone National Park.  We had heard of the Bear Tooth Highway and its description as “the most beautiful drive in America.”  The highway goes from the northeast entrance at Yellowstone from Wyoming into Montana and consists of miles of switchbacks, zig zags and high mountain driving.  It eventually goes over the 10,947 foot Beartooth pass.  It is breathtakingly beautiful and I recommend it highly.  We drove it in a conversion van and believe me when I say it was a white knuckle experience, with limited guard rails and thousand foot drops off the edge of the road!

His Camping Story

After the ride we ended up camping at a KOA in Wyoming.  That evening outside the shower house I ended up having a nice conversation with an 84 year old guy.  He proceeded to tell me he also had just came over the Beartooth Pass, except he was driving a huge RV towing a car!  I felt rather like a big chicken being so nervous in a more conventional vehicle.

He told me he had been forced to retire at the age of 65 and started out his retirement miserable. It was obvious his personal value was all tied up in his career.  He had nothing to do and mostly just sat around watching TV.

At 67 his neighbor somehow talked him into buying his used pickup and travel trailer.  Neither he nor his wife had ever tried camping before but he was so bored he was willing to try anything.  At this point he laughed a little when he said they left for their first camping trip when he was 67, but he never went home again!  Eventually they sold their house and just kept trading into bigger RVs over the years.  He said the past several years had been the happiest of his life.  At 84 he had no intention of stopping and he certainly seemed mentally and physically sharp as a tack!

Lessons to be learned

So what lessons did I learn that have stuck with me for many years?  Here are a few:

  • Try new things
  • Try new things even if you don’t want to
  • You are never too old
  • Plan for retirement beyond just money

What are your plans?

Probably the biggest lesson here is that retirement planning is much more than financial planning.  I got the impression that money was not a major concern to my 84 Year Old RV Driver, but yet he was miserable when he first retired.  Why not make some plans ahead of time so you don’t waste any precious time!

Filed Under: General, Personal Development, Things To Do Leave a Comment