How Do You Practice For Retirement?

Media / Blog

How Do You Practice For Retirement?


Be Careful About The Rules Around Saving For Healthcare

December 28, 2014

Almost every week in my line of business, I hear someone talking about ‘retirement’.    They have hopes, dreams, and ideas about the day that they just don’t have to work anymore.   I firmly believe that anything you do well in life is going to take practice.   That’s right Allen Iverson, I said practice.   But how in the world will you practice for retirement?  Here are three smart money moves ideas to help you think about getting ready for the day you say ‘no mas’ to letting the alarm clock get you up for work.

  1. Practice Your Money Habits- Having built well over a 1,000 budgets for families over the years, there may be no tougher budget than planning the one for retirement.   You’ll never really know how much you need in terms of withdrawals from your portfolio until you actually spend three to six months trying to live on that budget.  As one would imagine, this is difficult if the children are still in the house, but if you tell yourself all you need is $7,000 a month in retirement then try to actually budget that amount for six months to see what the over / under line is for your family.
  2. Practice Your Lifestyle- This may mean using your PTO in bunches so you can take three weeks in a row to see what life would be like with no work and lots of free time.  If you are determined to play golf or go fishing every day, then actually do it every single day.   If you tell yourself that you are going to start building custom furniture in your garage, then do that activity for two weeks in a row and see how it feels.   If traveling in an RV around the country is always what you dreamed about, then plan a three week trip to see if you actually like it.  The big question is do you need a sabbatical type break or are you fully prepared to put in the pink slip and stop working?
  3. Practice Where You Want To Live- Some people will tell me that they want to pick up and buy a house in the mountains or move to the beach or relocate to another state.  Recently, I had a client tell me they wanted to move to New Mexico in retirement just because they liked it when they visited the state.   It is highly recommended that you go rent a place for a month in an area and live there every day to truly determine if you enjoy it all the time.   You should be very hesitant to make a big move without spending time in a given area.  Maybe you were there at a time of year where the weather was better?  Or there were more people?  Either way, practice where you want to live before you settle down.  The older you get, the harder it is to move.

Most importantly, I wouldn’t tell the boss you are ready to exit stage left until you are 100% comfortable you won’t want to return to work anymore.   It can be hard to re-enter the workforce especially if you are at a higher end salary.  Carefully consider what will happen to your pension plans, investment portfolio, and overall cash reserves if you make this move.   Practice makes perfect, so it only makes sense to practice retirement if you are within striking distance of your goal.

Written by: Ted Jenkin
Request a FREE consultation:


Who Will Take Care of Mom and Dad?

Sign Up

Sign up for our exclusive Sunday Paper with a weekly market commentary, insightful personal finance blogs, and life changing education guides.

Email sign up

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. oXYGen Financial is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice.

This site is published for residents of the United States only. Registered Representatives of Kestra IS and Investment Advisor Representatives of Kestra AS may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed. Not all products and services referenced on this site are available in every state and through every representative or advisor listed. For additional information, please contact Kestra IS Compliance Department at 844-553-7872.

PLEASE NOTE: The information being provided is strictly as a courtesy. When you link to any of the web sites provided here, you are leaving this web site. Kestra IS and Kestra AS makes no representation as to the completeness or accuracy of information provided at these web sites. Nor is Kestra IS and Kestra AS liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, web sites, information and programs made available through this web site. When you access one of these web sites, you are leaving our web site and assume total responsibility and risk for your use of the web sites you are linking to.