Below is an excerpt from the book Downsize Sooner than Later – 18 Rules for Retirement Success available on Amazon.com.
This rule expands upon the concept introduced in the last rule regarding the varying modes of retirement. – voluntary, partial voluntary, partial involuntary, and involuntary. What we observe from the retirement modes is that retirement is not necessarily a binary “all or nothing” decision.
What do you want most from retirement?
Do you want more freedom? Extra time? More say about what you will do with each day? More opportunity to do the things you truly enjoy? Time to travel? Time to volunteer? More time to spend with friends and family? Time for hobbies, recreation, reading, or other enjoyable pursuits?
You can surely have such things, but they do not necessarily presume or require that your economic productivity must drop to zero.
During working years, the most valuable asset most people have is their ability to earn an income. It is wise to proceed with caution before wholly discarding such a valuable resource in retirement.
Consider the story of Mary. Mary was a stay-at-home mom who relished volunteering at church on a part-time basis during her many years of raising a family. When she and her husband retired, they moved to an upscale area in a warmer climate. In time, she discovered a local church to her liking and resumed her long-enjoyed practice of volunteering.
As one might expect, given that Mary appreciated volunteering and without the demands of children to raise, her volunteer commitment began to expand.
Willingly, she took on many elements of running the church that customarily were the role of paid staff. In her well-to-do community, it would have been no trouble for the church to pay her a reasonable stipend for the performance of these services. However, she never thought to ask for this. Perhaps it seemed ignoble to do so. As such, she continued to offer more and more help for “free” as time went by.
Years later, she and her husband’s portfolio-based retirement income plan ran into trouble. Eventually, they were forced to downsize and move to an area far away from the church she had come to love and support so much as a retiree. As she was leaving, church members – particularly the pastor – were shocked. None had any suspicion of her financial difficulties. Yet, none could make up the lost time, undo the missing years of income, or repair the resulting damage.
Though Mary’s work possessed significant marketable value, it simply did not occur to her to consider being compensated for it. Had Mary made it a priority to more highly value her time and request compensation for that time, she may have been able to ease and perhaps even prevent some of her eventual financial difficulties.
There is no shame in asking to be compensated for doing valuable work.
This fact remains true, regardless of age. Yet, here again, we run up against conventional wisdom. Many say things like, “When I retire, I want to spend time volunteering.” This is a worthy goal. Like the wish to leave a legacy for children and grandchildren or to a favored charity. However, such desires must not supersede the necessity of maintaining one’s own personal and financial wellbeing.
Such circumstances can be likened to a flight attendant’s forewarning to secure your own oxygen mask before assisting children or others.
If you let yourself pass out, not only will you be unavailable to help others, you may end up needing help yourself.
Consider also the story of Juan Carlos. Juan Carlos was a university professor who received a lifetime pension upon retirement. Many teachers and other public servants are exempt from individual and employer contributions to Social Security. This means they must rely on state or government employee-based pension systems to be their mainstays during retirement.
Juan Carlos, throughout his teaching career, developed a part-time consulting business related to his professorship in engineering. When he eventually retired, he continued this consulting practice. Though he could have devoted full-time attention to the business, he did not choose to do so. Instead, he used the extra time and income to fund travel and spending more time with family.
In the many years since his retirement from teaching, Juan Carlos’ side business has continued to grow. Today, it provides him with significantly more income than even his pension. He still uses this “extra” money for travel and to afford more time with friends and family. He also sets aside funds for a substantial legacy to leave for his children and grandchildren.
Both Mary and Juan Carlos developed marketable skills throughout their lifetimes. One chose to be recompensed for this value during retirement, while the other missed the opportunity.
In truth, just about everyone possesses some number of skills that are of marketable value.
The key to unlocking this value is to look for and become aware of these skills. Think back on your life. Beyond opportunities based on your prior career, consider activities that you love and enjoy, such as hobbies. This may include things like painting, reading, sewing, fishing, golfing, hunting, or restoring old cars. Almost any area of interest, from providing daycare for children – and, increasingly, daycare for adults – to giving folks a lift from time to time, to personal organization, to decorating, to pet sitting, etc. can be conceived of in an economically productive form.
• What if during retirement you could find fulfillment along with financial reward?
• What if you could build relationships while continuing to build your savings?
• What if you could strengthen your mental acuity while helping to ensure your overall security?
Even on a part-time basis, such opportunities are well within reach. The key is to establish a mindset that will reveal those opportunities. With the proper perspective, you can achieve the best of both worlds.
But what if you just don’t want to work?
I know people – whom I care for and respect – who say when they retire, they just want to be done. No more work. No more job. Not even part-time. Not even doing work they might “love.” Complete shutdown. I have even heard this from some planning to retire at younger ages, such as in their early 60s. Sometimes, I hear this said, regardless of my prior and impassioned attempts to eloquently articulate the benefits of the contrary.
I must admit, I have a hard time understanding this perspective.
I know individuals who have chosen the shutdown mode in retirement. I am suspicious of this course. For the most part, I wouldn’t change places with any of those I know who saw it through. It’s almost as if they are sitting around waiting for the end. One has turned her consciousness inward. She frets and complains constantly about her health and financial issues. It as is if her full-time job is rushing back and forth between doctor’s offices, and this has gone on for nearly two decades. Another I know has prematurely lost physical capacity due to too much time sitting in a chair. People say, “Keep your stride!” Well, he has lost his. Yet another suffers from a paralyzing predisposition to expand time. Having all day to do even the smallest things, the smallest things now take him all day to do.
Business philosopher Jim Rohn once postulated that “what most messes with the mind” is doing or being less than all you can become.
Once, while walking along the beach, I observed a bottle-nosed dolphin swimming through the nearby waves. She was obviously old, and you could see nicks and cuts along her upper back and dorsal fin area. It occurred to me: there are no banks in the world of dolphins. No retirement funds. No pensions. No insurance companies. She must work to earn a living until the day she dies. A noble and majestic creature, yet she is compelled to show up for the fight every day until her last. Are we so different? Just because we may be able to sit aside idly, does it mean we should?
Everyone must decide.
For my part, at least, for as long as I can, I intend to stay engaged and spend at least some ongoing effort to strive, to grow, to achieve goals, and to build. When my capacity eventually depletes, as it someday surely will, I hope I can take some comfort in knowing I continued to fight the good fight.
Questions or comments?
I can be reached at this link – contact Ted Stevenot.