Broker Check

Challenge #2: Do you know how you want to spend your time in retirement?

December 12, 2016

What is your vision of how you will spend your time in retirement? Rather than taking a 50,000 foot view, get specific!  Think of an average day and how the hours you used to spend working will be redistributed.  Also factor in that for many, retirement may span 20-30 years. For a more concise vision, you may want to think about retirement in 3 phases with each phase representing between 5-15 years. 

Phase 1- Early retirement is generally characterized as the most active phase, early retirement is often an extension of your pre-retirement lifestyle but with extra time for spending and extra-curricular activities. 

Phase 2- Middle Retirement is when health and energy may begin to decline a bit so some of those extracurricular activities may fall away which also slows spending.  More time is spent on quality activities with the people you enjoy the most and making sure your money will last. 

Phase 3- Late retirement is when activities wind down and the focus shifts to maintaining your household, quality of life, spending time with those closest to you and leaving a legacy. 

Spending, social activities, interests, hobbies and a potential bucket list items will shift and evolve in these 3 categories so the bottom line is to determine what is most important to you, how life may change over time and customize your lifestyle plan.  After all, there are only so many rounds of golf you can play and only so many cruises to take!