AARP The New Retirementality E-Book

Mitch Anthony

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 456

Veröffentlichungsjahr: 2011

Beschreibung

AARP Digital Editions offer you practical tips, proven solutions, and expert guidance. With this latest edition of The New Retirementality, readers will quickly discover how to achieve the freedom to pursue their retirement goals-at their own pace, on their own terms-regardless of their age. Most people won't experience the same retirement that their parents did, nor do they necessarily want to. Page by page, top financial planner Mitch Anthony reveals how new opportunities will enable individuals to create tailor-made retirements. He includes new research and studies to back his insights and introduces readers to important concepts such as "wealthcare" and "return on life." Filled with engaging anecdotes and inspirational suggestions, this book will motivate readers to rethink the way they retire.

Leseprobe

MAKING YOUR MONEY WORK FOR YOU

Maybe you’re thinking it’s time to review your investment strategy and make the most of the money you have today. Maybe you’ve already built a financially successful retirement egg and want to protect what you’ve built. Or maybe you need to bulk up your earnings to ensure your family’s future.

Welcome to money for grown-ups. Where do you turn for credible information?

Dedicated to helping you protect your assets, stretch your dollars, and bolster your longterm security, AARP can offer you powerful solutions. Whatever your strategy for managing money, we’ve got suggestions that will help – from saving money on that next big purchase to planning your charitable giving. If you’re taking your job to the next level or building up a second career, we’ve got strategies that will help you make your mark.

You may think your money — or your financial advisor — should be working harder for you. You may be watching market trends and seeing new opportunities. And, of course, you want to protect yourself and your loved ones from scams and data breaches. We can give you the support you need.

And turn to us for fun, too. (Is it time for that car, that trip, that weekend home you’ve always wanted?) Because that, too, is what this time of your life is about.

AARP is a nonprofit, nonpartisan membership organization that helps people 50 and older improve their lives. For more than 50 years, AARP has been serving our members and society by creating positive social change. AARP’s mission is to enhance the quality of life for all as we age; lead positive social change; and deliver value to members through information, service and advocacy. This information in this book is for educational purposes and does not constitute financial advice.

Table of Contents

Title Page

Copyright Page

Dedication

Preface

The World Is Beginning to Listen

Our Means and Our Meaning

Acknowledgments

PART I - OUT WITH THE OLD

CHAPTER 1 - What “Retire” Meant

Retiring Old Ideas about Retirement

The Artificial Finish Line

Illusions, Delusions, and Hype

Old Messages and New Realities

CHAPTER 2 - The End of Social Insecurity and Other Retirement Fears

The Demise of Social Security: Fact or Fiction?

Seniors’ Refrain: “We Want to Work”

You’re Going to Get Options After All

Is the Financial Clock Ticking?

CHAPTER 3 - A Short History of Retirement

The Day After

CHAPTER 4 - The Great “Retiremyths”

Age 65 Is Old

Retirement Means You’re Not Working

You Have to Be 62 to Do What You Really Want to Do

Retirement Is an Economic Event Exclusively

A Life of Ease Is the Ultimate Retirement Goal

You’re Going to Spend Most of Your Retirement Income on Doctors and Pills

I Can Do This by Myself

A New Definition

CHAPTER 5 - End of the Work/Retire Ultimatum

The Talent Shortage

The Brain Drain

When Is a Paycheck Not a Paycheck?

A Smoother Transition

PART II - A NEW WAY OF THINKING

CHAPTER 6 - Work May Always Be a Part of Your Life

Keeping Our Shine

The Significance of Work

Retirement Whiplash

The Flow of Intellectual Capital

New Heroes for a New Era: Retirementors!

Rearview Mirror

End of the Ultimatum

New Retirement Realities

The Societal Payoff

CHAPTER 7 - You’re Old Only When You Think You Are

Thriving, Not Just Surviving

Out with the Old

“Golden, Schmolden”

How Old Would You Be?

CHAPTER 8 - Staying Connected to the World

Keys to Living Long

The Vitamin Cs of Successful Aging

Pumping Iron at 80

The Soul of Accelerated Aging

CHAPTER 9 - You Don’t Have to Be 62 to Do What You Want to Do

A Path Paved with Fool’s Gold

Rusty Success Models

What Do You Have to Lose?

CHAPTER 10 - Don’t Settle for a Lukewarm Life

Working It Out

What’s Stopping You?

CHAPTER 11 - How Much Is Your Paycheck Costing You?

Finding Breathing Room

Bloom Where You’re Planted

Personal Development Inventory

Calling In Sick

A Company’s Vital Signs

Subtle Counterfeits

Man’s Search for Meaning

CHAPTER 12 - More Than an Economic Event

Issues for Our Middle Years and Beyond

Lessons from the Sudden Retiree

Mental Challenges of Retired Living

CHAPTER 13 - Making a Meaningful Transition

The Seven Intangibles

The Meaningful Transition

PART III - NEW RETIREMENTALITY SOLUTIONS

CHAPTER 14 - Retire on Purpose

A Vision for Life

Your Story

Still Contributing

When You ‘re Done, You ‘re Done

A New View of Old

CHAPTER 15 - Your Money and Your Life

Moving from ROI to ROL

The Money/Life Puzzle

Moving from Financial Planning to Financial Life Planning

Financial Life Planning in Retirement

CHAPTER 16 - It’s Not Just about Me

Other People’s Money

Boomer Interrupted

What’s a Boomer to Do?

Solutions

CHAPTER 17 - Maslow Meets Retirement

Income for Life

Our Hierarchy of Financial Needs

Paying the Bills

CHAPTER 18 - Calculating Income for Life

Locate Yourself

Paying for Survival

The Good Old Days

Safety Money

How Much Risk?

Freedom Money

Money to Give

Dream Money

Paying for Your Life

CHAPTER 19 - Making Your Money Last

Looking Forward by Looking Backward

Health Care or Health Scare

Financial Disconnect

Protect Yourself . . . From Yourself

Working It Out

CHAPTER 20 - Wealth-Care Checkup

Investor Error 1: People Think They Are Smarter Than They Are

Investor Error 2: Too Much Focus on Past Returns

Investor Error 3: Hanging Out with Losers

Investor Error 4: Believing You Have an Information Advantage

Investor Error 5: Not Paying Yourself First

Think about Yourself

Reality: Your Money Matures Faster When You Do

CHAPTER 21 - Finding the Right Wealth-Building Partner

I’m Doing Just Fine on My Own

I Don’t Want to Have to Pay for Services That I Can Get for a Fraction of the Cost

I Don’t Have Enough Money to Talk to a Professional

I Don’t Think I Can Trust Anyone to Manage My Money

Finding a Wealth-Building Partner

A Personal Safety Net

CHAPTER 22 - Giving Your Life Away

Creative Benevolence

Volunteering Payoffs

Something to Give

New Rules of Engagement

Philanthropy with an Attitude

What Do You Believe In? What Do You Have to Give?

More to Life

Bibliography

Index

Copyright © 2008 by Mitch Anthony. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

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Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

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Library of Congress Cataloging-in-Publication Data:

Anthony, Mitch.

p. cm.

Includes bibliographical references and index.

ISBN 978-0-470-25508-7 (pbk.)

1. Retirement—United States. 2. Older people—United States—Finance, Personal. I. Title.

HQ1064.U5A69 2008

646.7’9—dc22

2008006156

This book is dedicated to my mother,Bettie Anthony Huntley,who has never been afraid toblaze her own trails and follow her dreams.A generous portion of her spiritguides my life as well.

Preface

When I wrote the first edifion of The New Retirementality in 2000, we lived in a different world than we live in today. Not only have many realities changed, but our level of awareness on many money/life issues has evolved as well. In 2000, my thoughts and theories about the anachronistic nature of traditional retirement were quite novel, yet they seemed to strike a chord of recognition and resonance with many people. These were people who either had retired to personally experience what I was describing or had made firsthand observations about the mirage of leisure/life retirement.

My goal in writing the book was to get the attention of the baby boomer crowd, who were nearing 55 years of age at the time and needed to reexamine the traditional retirement proposition carefully. It seems that I was a little early to the dance. Boomers were embracing the ideas but were delaying their personal preparations. Now that the front-edge boomers are entering their 60s and retirement is pounding on the door, many are ready to tackle the question, “What do I want to do with my life?” This is what The New Retirementality is all about.

What was viewed as avant garde thinking eight years ago has become almost universally accepted today. Such is the case with some of the myths surrounding retirement:

• Age 65 is no longer the marker for “old.”

• Retirement no longer means “not working.”

• A life of total ease is one step from a life of disease.

• You do not have to wait until you are 62 (or even 52) to live the life you want.

These traditional assumptions have begun to topple, and a new awareness has emerged that is impacting every aspect of our society. We have all seen, heard, and read enough to recognize that these ideals are applicable to us today; the evidence surrounds us. Studies have been conducted to prove that these issues are real and that there are huge implications in store for our society, our businesses, our careers, and, most important, our personal well-being. In the past several years, many books have examined the sociological and demographic story as well as a few others that have addressed the spiritual and philosophical underpinnings of this irreversible paradigm shift in our world.

The World Is Beginning to Listen

Since this book was first written much has happened in our world to accelerate some of the changes called for in the original New Retirementality. I wrote about being more reflective about our working lives and life in general; the world events that ushered in this millennium caused us all to make such an examination. I wrote about the need for a more realistic approach toward retirement funding and how the market events and corporate scandals that followed led us all down that path. I wrote about the need to find work that fulfills us because we may be working longer than we originally planned, and the ensuing pension crises only confirmed what we suspected about most corporations—they aren’t really looking after us first.

There have been some amazing inroads made as a result of this message as well. Since the book’s original release, I have had the opportunity to help many major financial service companies begin anew in how they help their clients prepare for the period of life known as retirement. They began to realize that their old, outdated models were no longer resonating with the public and that, as important as the numbers are, they are only there to serve the life that produced them. Possibly, you have seen a few of the television ads that talk about the need to understand your life and dreams for retirement as a critical exercise in retirement planning.

I shared that corporations were going to have to rethink how they dealt with their most precious resource—aging, experienced baby boomers—and to find new ways to keep from losing all the intellectual capital that was about to walk out the door. This trend is well under way, and the last few years have seen many companies realize that they need to demonstrate more flexibility in both how they let people work and how long they keep them around. We are seeing progress in this arena but need to see much more. This trend is too powerful to reverse, and millions more of us know that we have plenty to give, but we will be offering it on our terms, not theirs.

Financial Life Planning was a novel concept when we first introduced it in 2000 but today both individuals and companies that exist to serve your financial needs are coming to realize that crunching numbers alone, without considering what is happening in your life and what events are on the near horizon, is useless and shortsighted. Financial Life Planning is the future of both financial planning and retirement planning as more and more people realize that the central point in all planning should be me, my vision, and my unique situation in life. You don’t have to accept an approach at an inferior level any longer as plenty of professionals are now approaching retirement and financial planning in this manner.

I am hopeful and encouraged that we are beginning to understand that life itself is what matters, and it matters so much more than just collecting a paycheck. We can work as long as we wish and do what we want. We can add value and make a difference as long as it in our hearts to do so.

Our Means and Our Meaning

We must accomplish our life agenda within the bounds of reasonable returns on our investments. Finding partners to help us may take more work and scrutiny than we thought. We need to consider what we want to be when we grow up. These are the current realities in the new retirement—and to successfully navigate these waters will take nothing less than a New Retirementality.

I was convinced at the beginning of this decade—and I am exponentially convinced today—that we need a breakthrough approach to retirement planning that goes beyond the numbers and helps us plan the rest of our lives. Beyond just planning what we want to do, we must also plan how we are going to pay for what we want to do. It is about finding and funding our lives. This book is a unique hybrid of the philosophical and fiscal examinations necessary to fully liberate our lives into a state of balance and meaning that we so desperately desire, yet often prevent by our own choices.

I view money as a means to meaning. If managed properly, money can be employed as a utility, like a sail on a ship, to move us around the adventurous seas of exploration and the calm harbors of family togetherness. Misuse this utility and you’ll find your best intentions shipwrecked, tasting the bitter salt of failed dreams.

I wrote this book for a very simple reason. I want to see people live their best life NOW! That would be a life of balance. That would be a life filled with purpose. That would be a life that includes the joy of meaningful work.

This third edition of The New Retirementality addresses these issues and the new realities, and offers ideas, tools, and processes for “doing the math” of shaping a fulfilling life.

A great privilege comes with the release of this third edition of The New Retirementality. As the author, I already have seen the fruits of these ideas in the lives of others. I have crossed this continent for the past five years telling this story, and, every time, somebody walks up to me afterward, eyes wide open with a fresh epiphany. What I usually hear is something like, “I made up my mind while you were talking that I’m going to do what I want with my life. I don’t want to settle for retiring the way ‘they’ tell me I ought to retire.”

I have also received scores of letters from readers who shared how the message in this book changed their lives or the lives of their spouses who were trapped in a carousel of boredom or menial and meaningless pursuit. Some wrote to thank me for affirming what they always suspected. Others offered gratitude that I “gave them permission” to live life on their own terms, in spite of cultural expectations and norms. I especially love being told and receiving stories from people in their 80s and beyond, who tell me that this message is “right on the money” and that they wouldn’t be here today had they not lived in the manner I am speaking of in this book.

If you ever plan on retiring, make sure you retire on purpose. I suspect that you have many years ahead of you and that you have much to give and to live. I hope your life will be imbued with the New Retirementality, which is a belief that cannot be stated any better than by the words penned by George Eliot: “It’s never too late to be what you might have been.”

If you find this book helpful in planning the rest of your life, I hope that you will pass it on. If you have a New Retirementality story to tell, please share it with me so others can be inspired by your life as well. You can go to www.newretirementality.com/retirementors to post your story so others can learn from your experience. The world of retirement is truly changing, and we can all be a part of helping it to continue to change for the better.

MITCH ANTHONY

Acknowledgments

This book has an audience primarily because of the belief and encouragement provided by literary agent and publishing consultant, Cynthia Zigmund.

Whatever degree of refinement the reader finds in this text is due to the ever watchful and always caring eye of my wife and first-line editor, Debbie.

For her incisive eye and diligent archeology, I wish to thank my researcher, Megan Stubbendeck, for a job well done.

I wish to acknowledge the many authors quoted in this book whose ideas may have seemed to find the bleeding edge instead of cutting edge because they were ahead of their time. Their ideas about retirement life and changes are the seeds that have the power to ultimately enrich many frustrated souls.

M.A.

PART I

OUT WITH THE OLD

CHAPTER 1

What “Retire” Meant

THE END OF RETIREMENT AS WE KNOW IT

Things do change. The only question is . . . will society and man’s habits change quickly enough ?

—Isaac Asimov

The U.S. standard-gauge railroad track is four feet, eight and one-half inches wide. Why such an odd measure? Because that was the width in England and the United States when railroads were built by British expatriates.

Where did the English get that measure? The first rail lines were built by the same people who built the tramways that preceded railroads, and they built the trams with the same jigs and tools used for building wagons. The wagons were built to what is now the standard-gauge railroad track so their wheels would fit the ruts of England’s ancient long-distance roads.

The ruts had been made by the war chariots brought to England by the occupying imperial Roman army. And the chariots were four feet, eight and one-half inches wide to accommodate the rear ends of two horses. You’re not alone if you struggle with change.