BY JOE M. COX II
Retirement is about how to spend time after the career is over, the kids are grown and the third act of the stage play called “My Life” begins. When planning for retirement, envision the big picture. It”™s not just about the quantity of money saved; it is about the quality of the time over which it is spent.
Part one outlined the four pillars to a successful retirement: finances, health, community and intellectual growth. It”™s important to balance all four of these areas and have an understanding how they will change with age.
Ӣ Financial considerations: Create a written financial plan that tests your cash budget based on certain scenarios.
Ӣ Health and medical issues: Write a plan that discusses the proximity and quality of health care. Also include an activity and exercise plan that grows and changes with age.
Ӣ Community and support: Devise a plan that includes friends, family and emotional support without the difficulty of distance or formal get-togethers.
”¢ Intellectual stimulation and growth: The “me time” that is craved for while working is now more important than ever to generate intellectual stimulation and long-term mental growth.
Financial and health issues were discussed last time. Now let”™s focus on points three and four.
Staying connected to friends and family enriches retirement. Being involved with others is critical to success. In general terms, women have a tendency to do better in this area than men. But life can imitate art. For example, in the movie, “It”™s a Wonderful Life,” George Bailey is called “the richest man in town” because he has so many friends. Wealth is not just where the dollars are; it”™s where the friends are. Two or three real friends are worth more than 100 acquaintances. As Ralph Waldo Emerson wrote, “The only way to have a friend is to be one.” Locations where friendships bloom are home, places of worship and volunteer activities, to name a few.
Where people meet people are also places where intellectual stimulation and growth can be nurtured. Having a plan and activities that will transition over time is crucial for long-term emotional happiness. Make sure these pursuits are of genuine interest, are challenging and provide a sense of accomplishment. It”™s also important that it provides a sense of self-development and that it doesn”™t cost too much.
So if taking a course at a local university is more in the cards than playing cards ”” do it! If an artistic indulgence is a passion as opposed to passing the time, sign up. And if joining a board of a charity is more of a personal reward than a personal donation, get active.
This holistic approach to retirement creates interests, maintains health and doesn”™t drain monetary or emotional assets. One of the most challenging things to do in life is to retire. So make a plan to replace the old routine and schedule with a new one. Stay vibrant, not just busy. Let the third act be your finest performance.
Joe M. Cox II is senior vice president and director of wealth advisory services at Webster Wealth Advisors ”” a component of Webster Private Bank”™s offering for high-net-worth individuals, families and nonprofits. He works in Fairfield County. He can be reached at jcox@websterbank.com.
