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Audio PODCAST

Retirement is a highlight in one’s life, representing freedom and the culmination of decades of hard work and dedication. You work many years, and the ultimate goal is to retire in comfort and enjoy your remaining years with a sense of peace and fulfillment. Retirement is one of the American dreams that can come true, offering opportunities to travel, pursue hobbies, or simply relax in the company of loved ones. It takes meticulous planning and disciplined saving to reach this desired goal, ensuring that you can sustain your lifestyle and meet your needs during this new phase of life. Additionally, it takes a little luck for all the cards to fall in place so that retirement can happen, including factors like market conditions, health, and unexpected life events. The journey to retirement is both a financial and emotional endeavor, demanding foresight and resilience to navigate the challenges along the way.

Since I retired eighteen years ago, I will share what I did to help me live comfortably in retirement. First, I made sure all my credit cards were paid off, ensuring that I was not burdened with unnecessary debt. The only balances I had in credit cards were monthly expenses, such as groceries and utilities, and they were paid off totally every month to avoid interest charges. I also took the time to thoroughly inquire about what my social security monthly amount would be, as well as the small pension amounts we would receive after retirement, understanding the importance of knowing our financial limits. Additionally, I reviewed the condition of the vehicles in our household, assessing how many years they would realistically last before needing replacement, which helped with long-term planning. Then, I made a tentative budget to see if our retirement income would cover the necessary expenses every month, analyzing all aspects of our financial needs. Entertainment items, such as trips and vacations, which were important for our quality of life, would come out of our savings rather than our monthly income. After careful consideration and planning, the decision was made to retire, with the hope that our finances would not only support us but would last longer than our lifetimes, allowing us to enjoy this new chapter without the constant stress of financial insecurity.

Everything was doing ok until the financial crash of 2008. At that time, our portfolio showed unrealized losses to be over one half of our total assets, which was quite alarming. The decision had to be made to sell the stocks and change the unrealized losses to realized losses, a choice that weighed heavily on my mind. Since I didn’t need the money immediately, I elected to keep the stock, hoping that the value of the investment would eventually return to the purchase price before making a sale. It was a gamble that I felt was worth taking, as selling in a downturn often leads to regret. We didn’t make any money, but we didn’t lose any either, which was a small consolation in such volatile times. It took about seven years to finally regain all our original investments, a journey filled with uncertainty and anxiety. These were scary times, marked by constant headlines of market turmoil and fears of a prolonged recession. In light of this turmoil, the decision was made to pull out of the stock market completely and invest solely in secure assets, like bonds and real estate, which appeared to offer a more stable return. I was just becoming too old to live with that stress and insecurity; my health was starting to feel the strain of worrying over fluctuating markets. Since then, we have been okay financially, cautiously navigating this new approach to investing, and it has provided a greater sense of peace and security in our lives.

As you become older, health issues tend to hamper retirement plans, often causing individuals to rethink their aspirations and dreams. The vacations and trips that once seemed so enticing and achievable now appear to be shelved because of these unforeseen health challenges. We have had over eighteen years of comfortable retirement, filled with cherished memories and joyful experiences, and we feel very fortunate to have enjoyed these years. Each day brings a new opportunity to appreciate the simple pleasures of life, but we are also mindful of the limitations that can come with aging. Hopefully, we will have many more years to explore the world around us, to create lasting memories with loved ones, and to continue embracing life with the same vigor and enthusiasm we once had.

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