The Biggest Life Event That No One Talks About

The Biggest Life Event That No One Talks About

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The author of this article is Blair Duquesnay. Blair is an Investment Advisor at Ritholtz Management, LLC. She is a holder of the right to use the Chartered Financial Analyst® designation and she is also a CERTIFIED FINANCIAL PLANNER™ professional.

We all go through major life events. As Jerry says, there is usually 4-7 forks in the road, major moments, that if we can get more of them right, life will be good. We give them a lot of attention, plan for some, react to others. The author Blair points out her thoughts on retirement and how it seems to get less attention then graduations, marriage, kids, becoming a grandparent.

Retirement is more than a transition from the daily grind to a life of leisure. It is a major turning point in our relationship with money. For decades we save and invest, watching as our pile of money grows. In retirement, we must flip a switch and begin spending down hard-earned assets. The good habits we formed while working and saving turn against us and inhibit our ability to enjoy the fruits of our labor.

As Financial Planners, we work with our clients to prepare them financially for retirement. Ensure they have good habits during working years to save for their future selves so they can live the lives they want to in the golden retirement years. That is not the full picture though. You can have saved all that money, but psychologically flipping your mindset into starting to spend it is a whole other ball game.

But making this shift in mindset isn’t easy. It requires learning a new skill; the ability to spend without feeling stress or anxiety. This is a skill set that has never before been required of human beings. Humans developed systems of trade and money to ease the transfer of goods and services. We built on that system to encourage investment in corporations and the financing of governments. Now that human creation, the monetary system, is relied upon to support our spending needs for the final chapter in life. We do not have a body of academic work or ancient wisdom to draw upon to guide us. We are building this plane in mid-flight.

Not only do you have to shift your mindset, but as Blair correctly points out, there is a shift in your sense of self. Working for years, in that same routine, it becomes who you are as a person. All of a sudden, what made up such a large aspect of your life for so long is gone.

Retirement is more than a transition in our relationship with money. It is a major shift in our sense of self. The work that has defined our lives for decades begins to fade from view. Everything about life is different after retirement, down to the minute details of the daily routine. I think it is important to ask yourself, who am I without my job, without my career? And more importantly, how will I spend my time? How will I spend my days, weeks, months, seasons, and years once the routine ends? These are vital questions for anyone contemplating retirement. For many, the allure of endless days on the beach or in the garden loses its luster quite fast. The risk of becoming bored is a real and unexpected risk that many retirees face. Recent retirees often experience a sense of malaise after the initial joy wears off. Work provides an embedded community of people to interact with on a daily basis. The loss of this community is a surprise to many who thought of water cooler talk as a necessary evil. It is important to piece together a new community of friends and family members in advance.

Retirement is one of the biggest transitions we will have in our lives. No matter if you are in retirement, retiring at the end of the year, or years away - start planning now what you think you might want to do in retirement. Your future self will thank you.

The article linked and mentioned above was posted on August 16, 2022 and written by Blair Duquesnay. Check out more from Blair at her blog The Belle Curve here.

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