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The beginning of a new year is the traditional
time to gaze into that proverbial crystal ball and make
your New Years resolutions. And hey, this time you are really
going to keep them, right? No question about that. And this
year, you really will stop your ten-year spending spree.
Good for you! If the US economy collapses as a result, there's
always Aunt Edna in Germany who will take you in.
But maybe living with Aunt Edna for the
rest of your life is not your ideal retirement scenario.
If you, like many others, have been putting off thinking
seriously (and not just dreaming) about your retirement,
maybe its time to add a few very specific retirement resolutions
to your New Years list. Below are ten you might consider.
First, however, begin by doing a quick
self-evaluation. Take the "retirement
readiness quiz" at www.yourretirementyourway.com
to get a baseline evaluation of your situation. This free
quiz measures your "retirement readiness" from
various different perspectives, only some of which are financial.
Then, depending on what you learn, you can modify the following
list to suit your needs:
- I will determine NOW the
specific date for my retirement, and I will write
it down right here: Month: _______ Day: _______ Year:
________. Wow. I did it! So the time I have left before
that date is _______ years and _________ months. Oh my
God! Really? That's not much time! Well, before I panic,
I will begin thinking about the fun stuff...
- I will plan for a significant
"break" (three months, six months, or
even a year) after I retire during which time I will do
many of the things I have wanted to do but have not had
time for (travel, re-bond with family and friends, take
a concentrated series of lessons to get my golf/tennis
game in shape, etc.). However, I promise I will stop thinking
of retirement as a perpetual vacation. Others who have
held this belief have generally wound up disappointed
and depressed. I know I will need to "get a (new)
life!"
- I will do some self-evaluation.
I will think carefully about myself, and write down a
list of the things I like to do, what really motivates
me and what makes me happy and satisfied. Through remembering
some of my most satisfying accomplishments, both at work
and elsewhere, I will examine these situations (who was
I with, what was I doing, what was the end result) and
think about how I might recreate similar situations in
my retirement.
- Using this information, I
will develop a specific written plan for my new life in
retirement, including where and how I will live
and the goals I want to accomplish in the following categories:
work (if any), family, couple, friends, community and
personal (just me).
- I will share and validate
this plan with my spouse/SO and my family and friends
who will be part of my retirement life. I will make adjustments
to my plan based on their feedback to ensure that they
are bought in and supportive.
- I will estimate the annual
cost of my retirement lifestyle by doing some pre-and
post-retirement expense estimates. (Financial planners
generally suggest that retirement will cost 70% to 80%
of your pre-retirement earnings, but this could differ
depending on your specific plans.)
- I will meet with my financial
advisor to review both my plans and my finances
and work with him/her to develop a realistic financial
plan which will ensure that my resources will be sufficient
to support me through my retirement years. Based on what
I learn, I will make the necessary adjustments to bring
my resources in line with my plans .
- I will implement my financial
plan to achieve my pre-retirement financial goals
(which probably will include maximizing my allowable retirement
account contributions prior to my retirement).
- I will think about the legacy
I want to leave behind, including updating my will
and estate plan, and undertaking activities both now and
in my retirement for which I want to be remembered.
- Beginning right now, I will
live every day to the fullest. I will strive to
eliminate the things that are making me unhappy and maximize
those which are making me satisfied and fulfilled. I will
remember the words of the Indian dramatist, Kalidasa,
who wrote: "Today well lived makes every yesterday a dream
of happiness, and every tomorrow a vision of hope."
And, on January 1st, 2009, I will review this list, see
how I have done, either pat myself on the back or kick myself
in the ass (fortunately, hard to do), and make a new one.
About the Authors: John
Trauth and Alan Bernstein are the co-authors of "Your
Retirement, Your Way" (Mcgraw-Hill, 2007), which
deals with the psychological, strategic and financial aspects
of the transition to retirement. www.yourretirementyourway.com.
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