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Guarding Your Wealth for Seniors
Changing View on Retirement May Allow You to Retire
Sooner
By Jeffrey D. Voudrie, CFP
April 10, 2006 - In our culture, the main goal of
retirement is to put our working days behind us and devote ourselves to
the pursuit of pleasure. Many find, though, that continuing to work in
some form keeps them active and gives their lives purpose. Changing your
concept of retirement may even allow you to retire sooner.
Retirement is far different today than what it was
for our grandparents. In those days, life spans were much shorter and
work more physically demanding. Most didn’t even make it to 65, and
those who did were often forced to slow down due to health concerns. No
one ever dreamed of having decades of doing whatever they pleased.
How times have changed! The ‘seasoned citizens’ of
today are energetic, mentally sharp and physically fit. As a result,
retirement should be viewed not as a cessation of work, but as a
redirection of activity. Many are discovering this new chapter in their
lives is even more meaningful and fulfilling than their years of
traditional ‘work’.
When someone wants to be able to retire and stop
working all together, it increases the amount they have to have saved to
achieve that goal. For instance, if someone needs $30,000 a year off of
their investments, they should have $700,000 or more set aside just for
that purpose. Many haven’t built such a nest egg and think they must
work longer before they can retire.
That’s not necessarily true. It all depends on your
view of retirement. Many of the people I know would be bored to death if
all they did was play golf and travel. They’ve reached the pinnacle of
their careers and enjoy staying busy. They want to keep their minds
active.
Changing your view of retirement may actually allow
you to retire sooner. It may be possible to ‘retire’ from your stressful
full-time job and become a consultant in your area of expertise. Doing
so would allow you to better control your work schedule while still
producing an income.
For instance, I was talking with a gentleman
yesterday who took early retirement from a major chemical company, but
still works for that company 20 hours a week as a consultant. He chooses
his own hours and gets paid well for his efforts. Yet he still has free
time to pursue his other interests.
I have another client who retired at 55 who works
short-term assignments in various locations for the same company. It
allows him and his wife to travel and to spend a couple months a year in
a different country. That means he doesn’t have to tap his retirement
money and he has the freedom to only accept the assignments he wants.
Talk about having the best of both worlds!
Earnings from even a part-time position will have a
major impact on the amount of money you have to have set aside. Using
the example mentioned above, let’s say that working as a consultant
part-time brought in $15,000 a year. The result is you would only need
$15,000 a year from your investments. So instead of needing a $700,000
nest egg, you would only need $350,000.
Some seniors use retirement as a chance to pursue a
new career entirely. There may be less pay, but there’s usually less
pressure, too. And if your new career choice doesn’t pan out, you have
the financial freedom to change course. Others might take a sabbatical
from work for a year or so, then re-enter the work place with renewed
energy.
Many seniors who are blessed with abundant
resources are eager to volunteer their time to worthy organizations.
Many skills important in the private sector are even more critical for
non-profits, yet they are often the ones who can least afford them. What
a blessing to be able to invest your considerable knowledge and
abilities and truly make a difference in the lives of others.
Changing your concept of retirement can relieve the
stress and pressure of attaining lofty financial goals. It will allow
you to get more out of life while giving you more freedom. And when you
love your work, it can give you a great sense of fulfillment. It turns
out ‘work’ isn’t a four letter word!
If you have a specific question or would like more
information give me a call toll-free at 1-877-827-1463 or go to
www.guardingyourwealth.com. You can also reach me by email at
jeff@guardingyourwealth.com.
About Guarding Your Wealth:
“Guarding Your Wealth” is a
nationally syndicated weekly personal finance column written by Jeffrey
D. Voudrie, CFP. Mr. Voudrie is the President of Legacy Planning Group,
a private wealth management firm that employs sophisticated proprietary
strategies designed to protect and grow its clients' investments. Please
visit his website,
www.guardingyourwealth.com to read past articles under the Guarding
Your Wealth Article Archive.
Guarding Your Wealth for Seniors are
a collection of columns by Voudrie that deal with issues of particular
interest to senior citizens. Click here
for all columns.
In addition to being a nationally
syndicated columnist and Certified Financial Planning Practitioner, Mr.
Voudrie provides personal, private money management services to clients
nationwide.
Looking for an energetic expert who
is passionate about financial and wealth management? Mr. Voudrie is an
excellent speaker who will excite and inspire your audience. Mr. Voudrie
is available for a limited number of speaking engagements, television
appearances and radio talk shows. For booking information, email e-mail
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