what_to_do_inretirement.htm

Al Hirschfeld died Monday, January 20, 2003. He was 99 years old. Al was still drawing his famous caricatures, and he was on a recent 60 Minutes TV show about older people who choose not to retire.

While this seems to be a developing trend, the idea has been around for a long time. Politicians often stay active well into their advancing years. Look at Senator Strom Thurmond who just turned 100!

There was a time when nearly everyone looked forward to retiring. They got a job with a good company, they worked hard and were loyal employees, and then they retired to enjoy the rest of their lives.

That scenario has drastically changed in just a few years. There is no longer any job security with one company. Current economic pressures are forcing many companies to reduce or eliminate health care and retirement benefits. Most employers don’t even offer a retirement plan.

Private retirement investments have taken a beating. The result is that many people have to work longer at their present job, or they find other employment after retirement from their original job.

It seems that now most people don’t consider completely quitting when they reach their Golden Years.

So, why are more and more people deciding to continue to work after they are eligible to retire? Here are a few reasons:

Boredom:
Everybody needs a reason to get out of bed each morning. It’s best if there is something you are expected to do.

A lot of people believe they will really enjoy playing golf or bridge all day, every day. After a few months of no responsibility and doing the same things repeatedly, some people start to lose interest. It’s not fun any longer.

Not enough money:
While insufficient money has always been a consideration for retirees, it is more important now during this economic slump. The stock market and dishonest executives have taken away expected riches from all classes of employees. Losses range from millions for high-paid executives down to thousands for ordinary people. It’s just another reason many people are deciding to continue working at something.

Increased longevity:
If they are reasonably healthy, everyone wants to live as long as possible. Modern medicine makes it possible for a lot of people to stay healthy for many years after the traditional retirement age.

This good fortune may destroy a well-planned retirement strategy formed when you were 20 or 30. You may outlive your money!

Desire for a new career:
Some people work toward a time when they can do something they have always wanted to do. They developed a plan to eventually provide the wealth and time to indulge these desires.

Two recent TV commercials illustrate this. The first is a story from an investment firm that helps an executive achieve his dream of being an executive chef in a fine restaurant.

The other is an ad about making videos showing not-so-old grandparents enjoying exciting adventures. The purpose of the pictures is to show children and grandchildren where all their inheritance went.

The Die Broke philosophy: This is a new idea popularized by the book, Die Broke. 1 The basic ideas are:
Treat yourself as a business.
In your mind, quit every job you have as soon as you start. Always search for better employment with increased income. Continuously strive for enough money to enjoy the things you dream about.
Save a little in case you become unable to work.
Spend everything else enjoying yourself and your family.
Pay all your final bills in advance and die with nothing. You enjoyed it all and you were never bored!

Avoiding the consequences of prolonged inactivity: Suppose you do retire at 60. After a few months you’ve repeated everything you thought you might enjoy. Now you start to lose interest in life and your activity level almost goes to zero. Prolonged inactivity usually has serious results. Two primary ones are:
Mental:

You may experience feelings of worthlessness. There’s nothing you want to do and no one needs you.
It seems that you have lost all control over your life. Everything is passing by you.
With nothing to do, you worry about everything constantly.
These feelings may develop into deep depression, perhaps requiring medical attention.
General health problems:
If you stop using your mind, your mental abilities will decline. This used to be accepted as part of old age. Most mental decline is no longer considered inevitable.
Inactivity causes muscles and bones to deteriorate. You may be unable to do things you would like to do.
Obesity is an ongoing national problem. Inactivity encourages it.
You may lose all your motivation to do anything. This puts you in the position of being interested in nothing. You are just waiting to die.

All this sounds bad. It is bad, and many people are realizing that complete retirement is not for them. They don’t want any of these consequences.

You may have noticed that not one of the inactivity results has anything to do with money. However, money is obviously a necessary thing. You have to plan for it, too. If you don’t, nothing else will work.

To avoid all these negative consequences and enjoy the positive ones, you must develop a strategy. It’s best if you begin when you are 20. Just do it, no matter your age.

Here’s an approach that will work:

Develop a written plan that includes these considerations:
What do you want from retirement? Do you want a lot of time for golf, travel, hobbies, or a second career?
How will you spend your life?
What would you do if you could do anything you want?
Don’t wait for retirement to do things. Do what you can as soon as you can. Everything will never be exactly as you wish. Remember: life is very short and unpredictable.
Considering your age, health, and life expectancy, how much will retirement cost?
How much money do you have now? What can you expect in the future?
How much do you need to save or invest to do what you want?
These calculators (www.fundadvice.com/tools/calculators/) will help you determine a lot of these items
Determine where you will live:
Begin work on this project long before you want to retire. You may find a place you like before retirement.
Using a maps of your state, the U.S., or even the world, pick several places where you think you might like to live when you quit your first career. Ten is a reasonable number.
Examine each location for property costs, taxes, crime rate, and availability of things you like to do. You should ask about the local political climate and how well government is run.
Visit each area several times for extended vacations.
Make your visits at different times of the year. Some seasons may not be enjoyable to you.
Get to know the locals and ask lots of questions
If you are concerned about protecting your assets, or about high taxes, consider becoming an expatriate, living in another country.
Ask yourself if you really want to leave all your friends to start over somewhere else. The people you have known for a long time may turn out to be your most valuable assets.
Determine what you expect from a new location. Realtors will tell you a lot of people think they want to live somewhere before they actually visit. Often they decide this just isn’t for them.
Do you like the people?
Is the weather enjoyable in all seasons?
How convenient are health care resources?
What entertainment is available?
Does the area suit your general lifestyle?
What will you do when you end your first career?
Begin a second career of some kind. Perhaps you’ve always wanted to be an artist, or a chef, or a writer. This may require training:
Search for learning centers that interest you on the Internet.
AARP has a Learning Center that offers free seminars on a wide range of topics: www.aarp.org/learn/
You can go back to school. Learn a new skill or just increase your knowledge. Either way you’re USING YOUR MIND!
There are many correspondence courses available on the Internet and by mail-order.
Local colleges in your community offer a large number of courses on just about any subject. If you are old enough, they may be free.
Develop an interest in a hobby: Arts and crafts might be something you’ve always wanted to do.
DON’T WAIT UNTIL YOU ARE READY TO RETIRE! Begin to learn and cultivate interests outside your normal work life as soon as you read this. The most miserable people are those with no interest outside their employment.
Work as a volunteer. The needs and opportunities are endless. Some ideas are:
Work with SCORE (www.score.org/) if you have the expertise and willingness to coach business owners in ways to improve their business.
Hospitals everywhere need volunteers.
Your church and local schools are wonderful volunteer opportunities.
Check with your neighbors and community groups. You’ll be surprised at what needs to be done.
The Internet has volunteer opportunities. Here are some ideas from AARP: www.aarp.org/serve/types.html.
Nursing homes and retirement facilities are located in every community. They need all the help they can find.
If you like children, there probably is a day care facility that could use your help.
Start a home-based business. Go to www.homebusinessmag.com/tarticle.html?aID=133&mID=&cID=12&sID=0 for an article that will get you started. AARP offers many other ideas here: www.aarp.org/working_options/.
Find a new love, or revitalize your old one. This link offers some ways to do this: www.thirdage.com/romance/.
Here’s how to use this article to guide you into rewarding older years:

Develop a written plan that describes all your objectives. This is really a guide for your entire life. It should be done right now!
Research and define written plans for where you will live during the later part of your life.
Determine what you will do with your time. This is your opportunity to make a difference in your life and in the lives of others.

FOOTNOTES:

1 Pollan, Stephen M., and Levine, Mark. Die Broke: A Radical Four-Part Financial Plan. Harper Business, 1998. You can buy it from Amazon.com for about $11 plus shipping and handling: www.amazon.com/exec/obidos/tg/detail/-/0887309429/qid=1043186868/sr=1-1/ref=sr_1_1/002-3600134-0587256?v=glance&s=books

RESOURCES:

AARP home page, www.aarp.org/

Use the left sidebar to find information on a wide range of topics interesting to people over 50.

IdeaCafe home page, www.ideacafe.com/

Here is a wide range of home-based business issues from start-up through marketing, and everything between.

“Home Business Magazine Online,” www.homebusinessmag.com/index.html

This magazine is devoted exclusively to operating a home-based business. Everything you need to know is discussed here.

FundAdvice.com, www.fundadvice.com/

You may find help with your retirement financing issues on this site.

SCORE home page, www.score.org/

SCORE offers opportunities to volunteer business advice. You can also get free high-quality help for your small business.

Visit Geezer, www.geezer.com/index.html

This site is intended for older people who are interested in arts and crafts.

2Young2Retire, www.2young2retire.com/default.shtml

If you’re interested in alternatives to retirement, this Website is an excellent place to start.

ThirdAge, www.thirdage.com/

ThirdAge is devoted to issues of baby boomers, including retirement and second careers.

Where to live, www.retirenet.com/...Here are some ideas if you are considering relocation.

Article written by Yank Elliott, an IAHBE staff writer. Yank is a home-based entrepreneur and freelance business writer in Belhaven, North Carolina. His Website is www.furriwhalesworld.com.