Good morning friends,
When you hear the word “retirement” what comes to mind?
I imagine some of you are thinking about things like:
Rounds of golf
More time with the family
Finally catching up on your reading
And if you’re being completely honest with yourself, you’re also thinking about:
No more work
No more meetings that should have just been an email
No more commuting / Zoom calls
No more having to deal with _______ (insert your least favorite co-worker here)
No more “performance reviews”
I written before about the idea of retiring “to something” instead of “from something.”
And lately, I’ve also been thinking about the transition to retirement as a move from full-time work to full-time living.
And while this may simply appear to be word play on my part (and it is), I think this might be a more helpful way to think about your retirement.
For many of you, retirement is nothing more than an idea.
Whereas your current daily/weekly/monthly routine, including work, is something you know and are intimately familiar with.
But what happens when you replace full-time work with full-time living?
For some, it’s a smooth, easy transition. Your days are filled with activities, time with friends and family, and maybe even some continued work in some form or another.
If you ask me, retirement doesn’t mean no work. I instead like to think of it as “work optional” where any work you continue to do is a deliberate choice in the context of the rest of your full-time living plan.
But for some of you, it might be a scary leap into the unknown.
Some of you have so much of your identity tied up in your work, you might feel a bit rudderless when you’re no longer working full-time.
By the way, in many respects, I’m describing myself here. I love my work and it’s a big part of who I am. Maybe that’s part of the reason why I honestly can’t imagine retiring and no longer doing this work that I truly enjoy…
Regardless of where you fall on this spectrum of being mentally and emotionally prepared for retirement, I think it’s worth paying attention to and giving some serious consideration.
You may know this, but the highest rates of divorce are for those age 50+.
This so-called “gray divorce” is likely due to a number of factors, some of which are outlined in this recent Kiplinger article.
And I regularly hear about and am referred to women who are dealing with divorce in their late 60s or even in their 70s.
I suspect at least some of this later-in-life divorce is a result of not being prepared for full-time living after decades of full-time work.
How about you?
Are you prepared for the transition into full-time living?
I have more thoughts on this topic and might revisit it in future emails.
Once again this year, the tax filing deadline for most of you has been extended. It’s May 17th for your 2020 tax return.
And it’s likely we have some changes coming to our tax system.
Here’s an Investopedia article which provides an overview of the anticipated changes.
And for something that might be a little more helpful as you think about your personal tax situation, here’s a checklist:
And if you’d like to discuss or look at any scenarios with your taxes, that’s something I can help you with.
20 Rules for Markets and Investing
Here’s an article filled with helpful reminders which can reinforce sound decision making when it comes to your investing.
You may notice that it’s over a year old, but these “rules” are evergreen in my opinion.
Every. Single. One. Of. Them.
I encourage you to read through them all and give them some thought. And maybe bookmark this article for future reference.
In fact, here’s an abbreviated PDF version:
While it doesn’t make for exciting news or get much coverage on CNBC or the front page of the Wall Street Journal, the best money advice - whether related to your investment portfolio or something else - is simple, straightforward, and will often seem like common sense.
Thank you for reading, and have a wonderful rest of your week!
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Until next Wednesday,
Why indie music? Please read the Postscript of Issue #2 for context.