Not long ago I sat down with a client who has a very robust financial portfolio and is planning to retire soon. I asked him, “By the way, John, what are you going to do on your first day of retirement?”
He looked at me with a puzzled expression that seemed to say, “I don’t know,” as if he hadn’t given any real thought to how he might spend his time.
Your plan for retirement is as important as whether you’re financially ready to do so. As you gear up for it, you should examine as best you can your emotional and fiscal readiness for one of life’s greatest milestones.
Let’s look first at your dream for retirement. It’s something we all think about as we draw closer to our 60s. What do you see yourself actually doing? Is there a hobby you’ve been wanting to devote more time to? What about travel, spending more time with family, or volunteering for a favorite charity or cause? More time for entertainment, reading, or exercise? These are some of the basics that could fill the time you used to spend working. The trick is finding something you enjoy doing as a reason to embrace each new day as a retiree.
The status of your health is also a factor to consider, and whether your skills may be slipping. If you’ve decided it’s time to retire because your health is poor, then you may use that extra time in retirement dealing with your medical problems. On the flip side, you may want to retire because you’re feeling fit and have a desire — and the financial wherewithal — to finally do what you feel like doing.
As part of your self-examination, you may say to yourself: “I’ve been a dentist for 30 or 40 years, getting up weekdays to go into the office, interacting with my staff and patients, socializing with my peers. How will it feel when I’m not doing that anymore?”
I’ve known folks who seemed lost when they retired — as if their whole identity came from what they did professionally rather than who they are. It’s easy to think of friends, family members or colleagues who’ve retired and whose good health quickly seems to go south because they don’t know what to do with themselves.
The preceding article is a portion of a longer article that originally appeared in the MDA Journal, October 2013 issue, written by Gary Borucki, CPA, of the Rehmann Group. This article is presented as informational and should not be considered as financial advice from the MDA. The MDA recommends speaking with trusted financial advisers in planning your retirement or making other financial decisions. The full article is available in the MDA’s e-book, After 55: Now What? A Guide for Members in Late Stage Practice. Download it free at the MDA Web Store.
