1. Taking the Mystery out of Retirement It’s All About Planning
Am I Ready to Retire?

2. Copyright - Next Level Results, Inc.
Disclaimer
The information and thoughts presented in this retirement seminar are a result of my personal research and opinions, and do not necessarily represent those of the organization you are employed by or that is hosting the program. Bob Schulz
4/26/2019
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3. Introduction – Who is this guy?
and…
Why Is This Important?
64 year old Christian
Army Brat
3 children (41, 23, 21)
3 grandchildren (20, 18, 14)
Married, Wife Ellen age 54
Live in Castle Rock
Fly-fishing, gardening
HR Guy at GWL
Concierge/Connector (Branding Yourself)
Why
My own preparation
Newspaper articles
4/26/2019
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4. Introduction -Who Is This Guy?
I am 75 and have been facilitating this program for 10 years, since my retirement in 2008.
Married 39 years.
3 children, 3 grandchildren & 4 great-grandchildren.
My family, facilitating this program, fly-fishing & bridge are passions in my life.
4/26/2019
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5. What This Program Isn’t About
How to Retire or
A Sales Pitch
Most books say successful retirement is about your attitude.
You get out of retirement what you put into it.
4/26/2019
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6. Retirement Planning Challenges
Retirement Revolves Around 4 Questions:
How long am I going to live?
Impacts Finances & Influenced by Your Health
Where am I going to stay?
Determines Housing Costs & LTC Planning
What am I going to spend my time doing?
What Do I Want My Legacy to Be?
Who am I going to spend my time with?
Relationships Are Necessary, But Come with Drama
4/26/2019
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7. Before You Retire Action Steps
Planning:
Complete the Retirement Checklist (Handout)
Complete the DOL booklet Taking the Mystery Out of Retirement Planning (Handout)
Prepare a Budget & get out of Debt
Create a Retirement Income Plan using a Household Balance Sheet (Handout)
Why
Save – not because it takes a lot of money to retire, but so you have options.
Plan – not because you are going to be able to predict the future, but because if you don’t know where you are going, any road will get you there.
Practice – because it’s fun, beneficial, and financially prudent
4/26/2019
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8. Before You Retire Action Steps
If Your Planning Steps Indicate Your Savings Need Improvement:
Use the previous budgeting process to find areas to reduce spending
Use ‘found’ money to reduce debt
Increase contributions to your savings plans
Seriously consider working longer (age 70?) to increase your Social Security benefit and reduce your years in retirement.
4/26/2019
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9. Before You Retire Action Steps
Practice Your Retirement by:
Communicating your dream/vision for retirement with your spouse or partner
Revisiting old hobbies, sports and activities
Trying out the things you are considering doing
Don’t wait to retire to enjoy life.
4/26/2019
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10. Retirement – Only the Beginning
You have the possibility of spending 30 years or more in this final phase of your life.
What will that be like? Will they be the
golden or not-so-golden years?
It Depends.
And yes, that may include diapers.
They say that the children of “baby-boomers” will spend more time dealing with elder-care issues, than raising their own children.
4/26/2019
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11. Retirement – Only the Beginning
Retirement Is a Fundamental Change in Your Way of Life, and Requires Significant Adjustments over Time.
In your daily routine
In your social network
In your family dynamics
Successful Retirement Requires 4 Things:
Plan
Decide what you want to do
Be mentally & physically active
Close contact with other people (Story)
4/26/2019
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12. Retirement – Only the Beginning
It’s not a onetime event or date, but a decades long process that evolves over time.
Retirement planning doesn’t end with retirement.
4/26/2019
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13. Retirement: When You Aren’t Ready
Six Signs That You Aren’t Prepared for Full-Time Retirement.
1. You are not financially ready. If an analysis of your ‘retirement income plan’ using the DOL Taking the Mystery Out of Retirement Planning tool shows your expected monthly inflow & outflow of retirement funds are running in the red, retiring now is not a good idea.
4/26/2019
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14. Retirement: When You Aren’t Ready
2. You don’t have enough interests and activities. Imagine there is nothing on your calendar for the coming week. How would you occupy yourself? Now multiply that by about 20 years to understand what you have in store. If you wait until you are retired to begin figuring out what to do with your time, you are making it unnecessarily difficult on yourself.
4/26/2019
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15. Retirement: When You Aren’t Ready
3. You enjoy your job. If you are fortunate enough to actually like what you do for a living, leaving just because you reach a certain age may not be such a good idea. And if you really enjoy what you are doing, what are you retiring from? You need to retire toward something, not away from something.
4/26/2019
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16. Retirement: If You Aren’t Ready
4. You Haven’t Planned for the Future. Many of us are focused on just getting to retirement and have not thought much about what comes next. It can be a mistake to roll into retirement expecting everything will take care of itself.
4/26/2019
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17. Retirement: If You Aren’t Ready
5. Most of Your Friends and Family Are Still Working With most of your social network busy at work, what do you plan to do? 6. You Are Not Prepared to Be Alone It helps to know prior to retiring if you enjoy spending extended periods of time alone.
4/26/2019
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18. Retirement: If You Aren’t Ready
Quote:
“The more your life revolves around work, the more of a shock retirement will be.”
John Osborne
4/26/2019
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19. Retirement – Am I Ready Financially?
Accumulation vs. Distribution:
The traditional goal of wealth accumulation is generally to seek the highest returns possible in order to maximize wealth, subject to your risk tolerance.
After retiring, the fundamental objective for investing is to sustain a living standard while spending down (distribution) assets over a finite but unknown length of time.
4/26/2019
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20. Retirement Income Planning
A Retirement Income Plan Should Be Based on Planning to Live, Not Planning to Die.
Strategies include:
Delaying the start of Social Security benefits
Purchasing immediate fixed annuities
Employing an ‘Ageing in Place’ housing plan
Opening a line of credit with a reverse mortgage
Filling a lower tax bracket today, in order to reduce Required Minimum Distributions (RMDs) in the future
4/26/2019
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21. Retirement Income Planning
Household Balance Sheet (handout)
Assets should be matched to liabilities with comparable levels of risk.
This matching allows a retiree to more easily determine whether they have sufficient assets to meet their requirement needs, or if they may be underfunded with respect to their goals.
4/26/2019
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Retirement Risks
Reduced Earnings Capacity
Unknown Longevity
Visible Spending Constraint
Heightened Investment Risk
4/26/2019
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Retirement Risks
Compounding Inflation
Spending Shocks
Declining Cognitive Abilities
Death of a Spouse
4/26/2019
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24. The Retirement Income Challenge
Build an Integrated Strategy to Manage Various Retirement Risks:
Each of these risks must be managed by combining different income tools with different strengths and weaknesses for addressing each of the risks.
There is no single solution that can cover every risk.
4/26/2019
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25. Retirement Fears = Paralysis
Fear of quitting my job Fear of having nothing to do Fear of not having enough money Fear of not spending enough Fear of dying young Fear of living to 100
4/26/2019
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Women and Retirement:
Some troubling statistics:
Women need to save almost twice as much as men to be prepared for retirement.
Women on average, earn 78% of what men earn.
Men work on average 38 years, while women work 29 years due to childcare and eldercare.
Women are more risk adverse in their investing.
4/26/2019
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Women and Retirement:
Because women live longer they spend longer in retirement and face depleted assets from their male spouse’s healthcare expenses.
Grey divorce tends to be more financially devastating for women.
If the husband applies for Social Security benefits early – and thus receives a reduced monthly payment – the survivor (wife?) benefit will also be lower.
4/26/2019
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Women and Retirement:
Among single women, 65 and older, 28.2% are considered poor or near poor, compared with 22.7% for non-married men and 8.1% for married people in the same age group.
4/26/2019
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Women and Retirement:
What’s a Women to Do?
The solution for all women – single, married, widowed or divorced – is to take control of their financial futures by considering the following:
It stands to reason that since women live longer, they should consider retiring later.
For married couples, both spouses should be involved in the day-to-day management of the finances.
4/26/2019
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Women and Retirement:
Delay taking Social Security benefits at least until their full retirement age (66-67).
Develop backup plans for each worse case scenario.
Educate themselves about financial matters and you won’t become intimidated.
Increase their savings and don’t cash out 401(k) or pension plans.
4/26/2019
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Women and Retirement:
Develop and maintain a healthy lifestyle.
Create a retirement income and spending plan.
Take advantage of workplace benefits.
Create a mock budget.
Be determined to eliminate debt.
Balance your retirement dreams with reality.
4/26/2019
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Am I Ready to Retire?
In Summary:
Do you have a plan & timeline for:
Establishing a budget?
Saving 15% of your income?
Becoming debt free?
When to start Social Security benefits?
Enrolling in Medicare?
Withdrawing your savings?
4/26/2019
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Am I Ready to Retire?
Exiting your home?
Long-term Care?
Maintaining your health?
Managing your time?
Developing a social network?
Creating your legacy?
4/26/2019
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Resources (Books)
The Single Woman’s Guide to Retirement
Jan Cullinane
The Smartest Retirement Book You’ll Ever Read
Daniel R. Solin
You Can Retire Sooner Than You Think – The 5
Money Secrets of the Happiest Retirees
Wes Moss
4/26/2019
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Resources (Books)
The Bogleheads’ Guide to Retirement Planning
Taylor Larimore, Mel Lindauer, Richard Ferri
Rewirement
Jamie P. Hopkins
The Elements of Investing
Burton G. Malkiel
From Here to Financial Happiness
Jonathan Clements
4/26/2019
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Resources – Workbook
Taking the Mystery out of Retirement Planning
Free Department of Labor Workbook
4/26/2019
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37. Am I Ready to Retire? Thank You! Questions?
Please complete the feedback form!
Bob Schulz
4/26/2019
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