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rethinking-retirementWhat has emerged from your research that retirees should think about?
The importance of interdependence alongside independence — we all would do better in our later years if we’re connected and not isolated. And how do I maximize my health span, not just my life span?
And there’s the serious issue of funding our longer lives. A third of the boomers have close to nothing saved for retirement and no pensions; that is a massive poverty phenomenon about to happen, unless millions of people work a bit longer, spend less, downsize or even share their homes with housemates or family.
What is the biggest mistake retirees make?
Far too many think far too small. I have asked thousands of people from all walks of life over the years who are nearing retirement what they hope to do in retirement. They tell me: ‘I want to get some rest, exercise some more, visit with my family, go on a great vacation, read some great books’ Then most stall. Few have taken the time or effort to study the countless possibilities that await them or imagine or explore all of the incredible ways they can spend the next period of their lives.
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In my case at 73 I am still hiking away with no health issues. But looking back to my sixties there are a lot of things I wish I had done then I don’t particularly feel like doing anymore. Such as cross country traveling to places like Colorado and my old stomping grounds in the Sierras for off the beaten path hiking adventures. My long time girlfriend who is 71 can no longer hike with me because of osteoporosis and that has really put a damper on things. So my advice to you youngsters in your 50s and 60s do whatever now, don’t wait. There are some things in life you don’t need a huge nest egg for. I have a friend who is 56 and a triathlete. He pretty much lives hand to mouth but every year finds a way to travel out west for a couple weeks of extensive hiking as well as participating in a couple triathlons in some exotic locations. Sometimes I envy him and his carefree attitude.
I also have been so focused on accumulating and not spending I find myself with a nest egg of 70x living expenses. I can think of a couple environmental organizations in my will who will enjoy my eventual passing. Again, to you youngsters, enjoy the fruits of your labor when you are at peak health and don’t get so obsessed with accumulation.
Glad I’m not working. It was fun and enlightening most of the time - but a big imposition on time. I terribly miss travel. Always loved flying. I’m thinking I’ll work-out extra hard every day now, generally climbing up and down area sand dunes, until winter gets too harsh so my good health can be extended a few extra years in order to enjoy travel once the world returns to normal.
Travel is tough now with most areas of the nation and world battling Covid. Many attractions, like Broadway, are closed. Love London where I’d planned to be in November. On their very modern “Underground” (subway) the cars are typically jam-packed with travelers. It’s not uncommon to be standing up and shoved against two or more other fellow travelers while riding. Folks accept that as quite normal. But imagine how Covid would spread in such an environment.
Since we’re off the reservation a bit, I’ll connect to investing by saying I’ve a lot of extra $$ on hand. Not just from the loss of major travel. Just not spending as much. I’ll transfer the extra Ks into a (home) “infrastructure” fund - as house will soon need a new roof and other upgrades. While I’d normally have the ‘21 budget needs pulled from investments by this time (sitting in cash), I’m going to let it ride for now. Stay invested long as possible.
Since 2007 we traveled to Europe for 3 weeks annually but couldn't do it this year because of COVID-19. So the only thing left is local hiking in GA. We decided a month ago to hike twice a week and treat it like a vacation.
We are using a great site https://www.alltrails.com
Example: we hiked the Raven cliff falls trail (link).
Retirement continues to be good after 15 years. Actively putting attention into maintaining good health makes sense to me as does accepting the aging process as it inevitably occurs. Being close to relatives makes sense in our situation (in some situations it doesn't!). Financially, maintaining a balance between current enjoyment and set asides for the future continues to make sense to me. My simple minded approach for about a decade has been to release income (including some long term gains) from investment accounts to our household account each year. Remaining portfolio balances continue to be set aside for growth, for potential use in extreme emergencies, and for assisting relatives if needed. Any remaining balances will eventually be distributed to heirs and to non-profits.
As my 70th birthday approached last year, I decided to somewhat increase the income being generated by the portfolio for release by beginning to move 25% of the OEF/ETF portfolio balance to a newly created high yield portfolio (an @Junkster thought process led to this decision). That process was recently completed. The new portfolio has been populated with higher yielding stocks (3%+ yields at time of purchase), cefs, bdcs, reits, and commercial mreits. Time will tell if this exercise has been helpful or not!
Income released to the household is used for a variety of general purposes. What remains is mostly used for travel. Unfortunately, an early March return from Hawaii heralded the end to this year's travel. Summer travel plans got cancelled or mothballed. Also, the month in Hawaii scheduled for this coming winter will probably get cancelled soon.
Trips since the pandemic hit have centered around getaways most weeks to our nearby beach cabin (having that has proved to be a real blessing this year). My hope is that a relatively effective vaccine will be fairly widely distributed by next summer. Once that happens, I am hopeful travel risk will be reduced enough that somewhat more normal travel can resume. I am not getting any younger!
After thought: Alway remember life is short! Don't take any day for granted! My wife recently mentioned she could count 19 friends, co-volunteers of hers at the American Legion, and relatives who have passed away during the past year. (We just visited a friend at the coast yesterday who lost his wife to liver cancer during the past month. She was about our age and appeared to be in good health when we last visited them during the winter. The problem was only recently discovered.)
We certainly intend to spend down our retirement savings. That's what they're for. We do hope to pass on the principal of some small family inheritances even if we need to take income from them.
Not sure when we'll get to travel under the current circumstances. We logged thousands of miles all over the West before we started having kids. Most of the time we were sleeping under the stars.
I have never been out of North America. But my wife traveled extensively in her career. I'ld like to rent a country place for a while, and visit the farmer's markets, and local establishments. Wife likes my cooking, so she agrees.
Never felt the need to read a book about what to do with my retirement time.
Speaking of saving for retirement, one needs to learn to be good investors (from savers) early in the career so the asset will compound until for the next several decades. Each bear market is a learning lesson. Hopefully one gained experience and become better investors. In private industry, lay-offs are inevitable as ones will change jobs several times throughout their careers. None of which is easy and I certainly have experienced that.
Certainly the fun aspect of dinning in new restaurants no longer exist. We do day trips to the coast and bring our own food instead take outs from restaurants we typically go to. Been to Moab, UT several times - nice places to hike and camp and the scenery is breathtaking.