retirement
These guidelines can be interesting, though, and this one from Fritz Gilbert comes from someone with a few years of retirement under his belt. Before he retired, he focused intently on the numbers. Dollars and cents occupied his thoughts.
“When we’re planning for retirement, it’s amazing how much time we spend working through the numbers. What I’ve found interesting is how little time I spend focused on the numbers now that I’ve retired.”
“In preparation for retirement, most people spend 90% of their planning time on the financial issues and 10% on the non-financial issues. After retirement, the ratio reverses, and most retirees spend the vast majority of their time focusing on the non-financial issues of life.”
The point of the 90/10 Rule of Retirement is to make soon-to-be retirees aware of a likely shift in their pre- vs. post-retirement focus. As Kevin said in his comment above, “if retirement coaches can help get these more in balance before retirement, their clients will have much better transitions”.
Pre-Retirement Thinking:
If you’ve not yet retired, you’re likely very focused on the numbers. Playing with different scenarios, spending shocks, bear markets, long-term care, longevity risks, etc. Fun stuff, actually. Interestingly, I can count on one hand the number of times I’ve opened any of those spreadsheets since I’ve retired.
Post-Retirement Thinking
I’m spending a lot less time looking over “The Numbers” these days, and a lot more time focused on the things that bring true contentment in life. It shows in my writing, and it’s a reality in my life.
To ensure your best possible transition into retirement, find a way to bring a bit more balance into your retirement planning. Increase your focus on the non-financial aspects of retirement.