Money experts reveal the often overlooked aspects of a happy retirement. How much do you ignore?
Think about all the numbers associated with retirement. Should I hang up my hat when I’m 62 or 65? Should you wait until age 67 or 70 to receive Social Security benefits? What will happen to the 4% rule? Do you really need seven figures in your nest egg? And how many times do you second-guess yourself trying to figure all of this out?
By the time you add it up, you’ll probably despair that you’ll ever get calculus right. However, one retirement expert and author supports the claim that “retirement is not a mathematical problem.”
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“If you’re all focused on your calculator or whatever, stop it,” Christine Benz said on the Sept. 17 episode of Morningstar’s podcast, “The Long View.” he said. So here’s the thing… There are some aspects of living a happy and successful retirement that may not be discussed enough. ”
What is overlooked in the retirement equation
When writing “How to Retire: 20 Lessons for a Happy, Successful, and Wealthy Retirement,” Benz consulted with other personal finance enthusiasts. Among them are Ramit Sethi, host of Netflix’s How to Get Rich, who talks about optimizing happiness, and host of the HerMoney Podcast, who talks about how women should change their mindset in retirement. This includes Mr. Gene Chatsky.
“People might be surprised to see my book, which is half non-financial, and maybe not even half of it is written,” Benz told MarketWatch. “But I feel like people focus too much on the financial side and not enough on the non-financial side.”
To be clear, Benz, director of personal finance and retirement planning at Morningstar, isn’t suggesting we abandon our attempts to calculate and estimate portfolios. In fact, one of her co-authors is the Morningstar Mutual Fund Guide.
And to that end, How to Retire reveals several financial strategies for retirement security. Regarding withdrawal rates from your portfolio, Benz points out that it’s wise to adjust your withdrawal rate from year to year based on the health of your holdings.
Read more: These 5 magic money moves will propel you up America’s net worth ladder in 2024. Each step can be completed within minutes.
But she also emphasizes the need to appreciate and embrace the non-financial aspects that make retirement a worthwhile adventure, something she learned while writing her new book. It’s a lesson. On the Morningstar podcast, Benz talked about how physician and personal finance expert Jordan Grumet influenced her when creating her final chapter.
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“He talks about what he calls his ‘Big P’ purpose, which is something really ambitious, like climbing Machu Picchu or starting a foundation.”
So how do you balance the math facts and the facts of life in retirement?Here are three ways to rebuild your life after work for the better .
Redefining retirement success
Maintain and build relationships: Retirement “community” involves more than just joining a retirement community. Get together regularly with friends and family and nurture your relationships with those closest to you. “Some of our interviewees strongly objected to that concept: the importance of maintaining the relationship even after the fact,” Benz said.
Stay ahead of life’s health changes: If you’re in good health at age 60, it’s easy to assume that you’ll stay that way. But smart retirement focuses on planning for a time when your mobility may decrease or you may no longer be able to drive, for example. Beyond finances, you may be able to help yourself in practical ways. “It’s never too late to make a difference,” Benz said, “and people who may have been careless about their health in the past need to make some modest lifestyle adjustments, even in their 60s.” said.
Calm down and relax: Similar to hitting the brakes on a speeding car, going from working full time to not working at all can be very disorienting, leading to feelings of loss and burnout. may worsen. Gradual retirement eases the transition. Benz himself is taking a “mini-retirement,” or sabbatical, from his day job to rest and explore education options. “I want to continue the impact aspect of my work,” she told MarketWatch. “And I’m thinking about letting go of the things I don’t really enjoy.”
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