By Frederick A. “Rick” Fisher, MS, CFP®
With the returns on equities and real estate over the last ten years less than many had expected, and many baby boomers focusing on material possessions rather than retirement nest eggs, many are rethinking their retirement options. On average, an estimated 10,000 Americans are turning 65 every day. This will happen every day for the next 19 years. In lieu of this, I want to focus on real options and solutions that all of us Baby Boomers can contemplate while we plan on what to do next.
For many of us, the plan to completely stop working and just travel or indulge our passions is out the window. Now is the time to take stock of where we are, look at our realistic options, and change our plan accordingly. I call it the “What Does Retirement Look Like To You” question. Since each of our situations is different, the answer will most likely be different now than it was five or ten years ago. However, we all must face reality, and make adjustments based on where we are currently.
The first thing we need to do is analyze our current position and address a few key questions:
- What assets do we own and which ones are liquid and/or may be used for current and future income?
- What debts do we have, and can we realistically afford the payments once we stop receiving our current salary?
- Are our retirement portfolios allocated and diversified properly to reflect our risk tolerance and now shortened time horizon?
- What pensions (including Social Security) will be available to us, when and for how long?
With these questions answered, we can start focusing on what is possible, and then adjust what we had hoped to achieve. One issue that previous generations rarely had to deal with was the possibility that the pensions they were promised and weighed heavily on may be significantly reduced. It has happened in private industry, (airline industry among others), and may happen to Public Unions and Social Security itself. We must make allowances for these possibilities in our new plans.
Many of us have concluded that we will have to work in some capacity well into our 70’s. To make this conclusion more palatable, I have recommended to my clients to plan on working in a field that they have a passion for. For, example if you have a passion for gardening, consider working for a nursery. If your passion is for movies, work at a movie theater. Assuming you have Social Security and some retirement assets to draw from, working part-time may be all that you need to do in order to balance your budget. Of course, if you enjoy working in your current field, then continue to do so either full or part time. I firmly believe that it is not necessarily a matter of working or not, it really is a matter of enjoying the time we work and having enough free time to enjoy our family and interests.
The key is knowing what is possible and making retirement look like what you want it to. For more ideas and details, contact us at Ostrofe Financial Consultants for a complimentary meeting to discuss your current financial state, and what retirement possibilities are open for you.
About Rick Fisher
Rick Fisher is a financial consultant offering comprehensive financial planning and investment management with Ostrofe Financial Consultants, Inc. in Grass Valley, California. His goal is to help clients prepare for retirement and pursue their financial dreams in a fun and personal way. Rick serves clients in 15 states, though most reside in California, including the greater Sacramento, Los Angeles and San Diego areas.
Credentials and Experience
Rick holds FINRA Series 7, 63, 65, 24, and 51 licenses and is supported by Ostrofe Financial Consultants and National Planning Corporation. He also holds his California Insurance License and the designation of CERTIFIED FINANCIAL PLANNER™ professional (CFP®). The CFP® designation is awarded to experienced financial professionals who pass an examination and pledge to abide by a strict code of ethics. He holds himself to their high standards of integrity, objectivity, professionalism and confidentiality. Please note: NPC does not render tax or legal advice.
How Rick Can Help
Rick strives to take the fear and stress out of financial planning. He works with clients to uncover financial issues they may not have known about or have not yet addressed. Rick and the Ostrofe Financial Consultants team are there to answer questions, guide clients towards their goals, and help them feel confident in their future. To learn more about how Rick may be able to help, call his office at 530-273-4425.