Navigating Retirement: Beyond Just Numbers and Finances
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Chapter 1: Rethinking Retirement
Retirement evokes a variety of interpretations for different individuals. A common inquiry is, "How much do I need to save for retirement?" This question is akin to asking, "How long is a piece of string?" as it lacks a straightforward answer. Having been retired for two years, I have encountered similar financial queries repeatedly, and while I'm not a financial expert, I feel familiar with the patterns.
The Primary Challenge
For many, the central challenge goes beyond identifying the ideal retirement savings. Numerous individuals have strong opinions about their retirement plans. Some are eager to leave jobs they dislike without contemplating how to fill their time afterward. Others hesitate to quit because they lack a clear plan for the future. Many find themselves with insufficient savings, leading them to believe they must work indefinitely. For those who retire, a significant concern is how to utilize their newfound free time. Some dive into part-time jobs in search of purpose, while others, like me, face the dilemma of having too many interests.
I Thought I Knew What to Expect
In my younger days, I believed that discovering purpose in retirement would come easily. Years ago, a friend and I organized a Japanese Animation (Anime) festival called Anime Sound & Vision in Chicago, drawing talent from Japan and across the U.S. Although we had around 500 attendees and enjoyed the experience, we ultimately lost money. I also operated a website selling Japanese animation production cels and attended several conventions with my sons. I anticipated that after retirement, I could dedicate my time to such activities, but the market for collectibles diminished, and my sons grew out of attending conventions with me.
Fast forward two decades, my retirement unexpectedly arrived when my position at a large market research firm was eliminated at age 60. Initially, I was determined to find a new job, meeting with various executives, but I soon realized my passion had waned after over three decades in the industry. I decided to retire, leaving me pondering how to spend my time meaningfully.
Finding Focus Amid Many Interests
Having an abundance of interests can be both a blessing and a curse, especially in retirement. After leaving the corporate world, I needed time to reflect on what truly mattered to me, so I recommend taking a break of 6–12 months post-retirement to assess your interests without rushing into commitments. This can be challenging, but I started listing my hobbies and testing them out. Here’s what I discovered, hoping it might inspire your own retirement journey.
Music
If you play an instrument, this could be the perfect opportunity to reconnect. I participate in my church's band, surrounded by young people, which helps keep my spirit youthful.
Pokémon GO
Some may view gaming as frivolous, but playing Pokémon GO has encouraged me to engage with others while staying active.
Consulting
If feasible, consider consulting on your own terms. I established an LLC and signed a contract with a Japanese market research firm I had previously collaborated with. I enjoy this work, which provides a manageable number of projects each year.
Travel
I cherish traveling and had a trip to Nashville planned shortly after my job loss. For the first time, I could explore without work obligations. Although my wife, who continues teaching piano, limits our travels, we still make the most of our opportunities, despite the disruptions caused by COVID-19.
Writing
Consider enrolling in writing classes. I found a course at the University of Chicago's Graham School, which led me to write a book about my experiences in Japan and self-publish it. I've spent over a year promoting it and have also contributed articles on various subjects.
Reading
Now is your chance to tackle that reading list. I created a Goodreads account to track my books, rating them as I go. I enjoy biographies and a wide range of fiction and non-fiction, including literature on retirement.
Managing Finances
I decided to manage my finances myself, leveraging Fidelity's free advisory services for guidance while making my own trades.
The Essence of a Fulfilling Retirement
Ultimately, the secret to a successful retirement lies in pursuing your passions and maintaining a youthful mindset. Engaging with younger individuals in organizations can provide a sense of purpose. For me, this involvement revolves around music, church, Japan, and staying updated with contemporary culture. Begin by evaluating your hobbies and interests, and if you haven't discovered them yet, seize this moment to explore new activities. Scheduling catch-ups with old friends can reveal how others are spending their time outside work. Many retirees use this phase to connect with family or recent retirees. Since I retired earlier than many peers, I’ve become a resource for them, offering insights into this new chapter of life. Regardless of your choices, embrace this time and keep your heart young!
The first video, Your "Magic Number" For Retirement Is Different Than You Think, explores how personal factors influence retirement savings goals, emphasizing that there's no one-size-fits-all answer.
The second video, Retirement Planning is More Than Just Numbers - Common Cents on the Prairie, highlights the importance of incorporating life satisfaction and personal interests into retirement planning beyond mere financial figures.