023 – Seven Most Common Retirement Dreams
Seven most common retirement dreams
A lot of people want to retire because they are sick of their job. They don’t wish to go to their office, cubical or assembly line one more day so doing anything besides going to the job they hate will do. Because of this phenomenon proper life planning does not take place and ultimately these people are sitting around watching too much television and still not happy. I know this because when I meet clients for the first time, I start with a broad discovery of everything that is important to them. I ask questions in the following areas; goals, relationships, assets, advisors, process, and interests. All of these subjects are easy for people to talk about except goals. If you want to know more about how to set dreams, please listen to episode number 17. Most people either have not thought about how they want to live out their retirement years or have not discussed these goals with their significant other. This lack of discussion sometimes leads to a semi-awkward moment in my office where they just stare at each other. I then play the role of a psychologist and ask more questions to try and help the situation. Too often I talk to people already retired, and they wish the topic of dreams and goals would have been figured out with their spouse before retirement. Just like anything else in relationships, there must be compromises made to achieve everything you want in life. However, if you start thinking about these things now, there is a much higher likelihood that you might achieve everything you want out of life. My hope is that you will start setting your dreams now. Here are 7 of the most common retirement goals that people have.
Living Expenses
When I help people set goals for retirement this is at the top of the list. It may not be glamorous, but it is a necessity. Many people come to my office with a world of stress upon them because they are afraid that they will outlive their money. When you are younger, it is not something you think about but when people start hitting their mid-forties reality starts setting in. The reality is your working capital will end someday, and you will only live off of the amount you save. Start planning now and avoid the stress later.
Healthcare
Health care is another dream that people may overlook. We don’t realize how much health care costs even when we are on Medicare. Paying for things like Medicare part B, C and D along with out of pocket expenses add up the older you get. Also, inflation in health care is playing a greater role in the need to plan properly for healthcare in retirement.
Travel
Travel can come in the form of vacations for a few weeks to buying a vacation home. There needs to be a discussion with your significant other to determine how long and where you want to travel. Do not assume that you want what your spouse wants. Work now to compromise on what you do want and then set a plan to get there.
Home Improvement
Once we are in retirement, we sometimes have so much more time on our hands. We look at our house and now feel the need to make home improvements. We all know that home improvement projects can be extremely costly so plan with your significant other what improvements you want done with your house or even if you wish to sell the house and live in something smaller. Figuring out where your home will be in retirement is a big decision. Make sure you are on the same page as your spouse.
Car
Cars can be a significant expense. Do you want to drive the same car until the wheels fall off, or do you want a new car every couple of years? Almost any significant expense can belong to this category. If you want a new boat in retirement, it is best to talk with your spouse now. If there is agreement, then it is time to start planning now for that brand new Lexus every couple of years.
Gifts and Donations
Gifts and donations might just give you the greatest joy out of life. There is no better feeling then giving money away. If this is your goal, start making a list with your spouse on who you want to give money to in retirement. Do you wish to pay for your grandchildren’s college or pay for weddings or vacations for the whole family? It is important to be on the same page with your spouse when it comes to major purchases. Donations to charities and churches also fall into this category.
Bequest
How do you want to be remembered when you die? Your legacy encompasses everything you do or say while you are on earth and everything you leave behind afterward. Do you want to start a trust that keeps on giving hundreds of years after you pass away or just a lump sum? Are you both on the same page on which people you want to leave a bequest.
These are all significant decisions. My suggestion is for you to plan a time and start talking about these decisions. You don’t need to make all of the decisions in one sitting, and they certainly will change over time but developing a framework now gives you the best chance to succeed in achieving your goals. More importantly, it puts you and your significant other on the same page and working together to achieve your dreams. Sit across from your significant other and grab hands, lock knees and start talking. Begin the conversation now. It will be the best decision you ever made.
About the author, Scott Wellens
Scott Wellens, CFP® is an investment advisor and founder of Fortress Planning Group. After earning his Bachelor of Science degree from the University of Wisconsin-Oshkosh, Scott quickly ascended to become a Vice President of North American Sales at a major regional provider of telecommunications infrastructure. While financially successful in this role, Scott searched for ways to pursue his passion related to financial literacy and providing financial freedom for both his own family and others. During his search, Scott became curious about the significant gap he found in the financial services sector: he was unable to find a comprehensive financial planner that maintained a family stewardship lens without being attached to financial products. Scott decided to fill that gap by creating his own planning firm that maintains a strong passion for comprehensive, unbiased wealth planning that is genuinely client-centered.
Scott resides in Menomonee Falls, WI with his family. He is the father of three active and independent daughters who keep him on his toes. Scott is an active community member, serving on the Hamilton Education Foundation Board, serves as a Dave Ramsey Financial Peace facilitator and leads the All Pro Dad’s group at their local elementary school. Scott enjoys spending his free time visiting state parks with his family, reading, and watching the Milwaukee Bucks and the Green Bay Packers win ball games.