6 Important Takeaways from the First Year of Retirement

‘People falsely imagine they’ll spend less in retirement. I have never seen that to be consistently true’
retirement
Image credit: © Oleg Dudko | Dreamstime.com

I helped my father, a truck driver in Texas, retire last year. I’ve watched this “regular guy” closely since then.

Here are six takeaways we’ve learned about his first year of retirement:

No. 1: Rest period

My dad is good at this, almost too good. After years of stress on his body, he’s taking at least the first full year to relax.

I don’t know what hobbies he’ll pick up, but that’s a problem for later.

No. 2: Spending has gone up

He has free time now and needs to entertain himself. Many of these fun costs wouldn’t happen if he were at work.

People falsely imagine they’ll spend less in retirement. I have never seen that to be consistently true.

No. 3: The financial plan changed in six months

We created a plan which empowered him to quit last year. In six months, life changed, and that plan is already stale due to a new relationship, inheritance from family, and a new lifestyle for which he was unprepared.

Life happens, and we have shifted with it.

No. 4: Retirement income is a mystery

There’s been a big learning curve in how he will manage his money. His language is focused on “income” (based on his upbringing around pensions and annuities), so we’ve taken baby steps getting used to how it will work, even without annuities.

No. 5: Extra cash makes him feel better

It’s weird not receiving a paycheck after 50 years of work. He’ll be spending down his savings, which also feels weird. To cope, we’ve decided to let him sit on extra cash (compared to normal standards).

No. 6: Our relationship has changed

Anyone who’s worked with family and close friends can relate. Every conversation now has “work” mixed in. It’s taken time to adjust, but I wouldn’t trust anyone else with this job. I’m glad it’s me.

To sum up

My dad is one of the most “regular” guys I know, complete with all the stereotypes. Even so, his behavior is pretty close to every client I’ve worked with, no matter the size of wealth.

People are people. Once you understand them, you’ll be able to help.

Bryan Hasling is a Partner Advisor, CFP®, EA with Alamo, Calif.-based Lodestar Private Asset Management. He helps ambitious professionals and successful families reach financial independence. 

Bryan can be reached at bryan@lodestarpam.com.

Bryan Hasling

Bryan Hasling is a Partner Advisor, CFP®, EA with Alamo, Calif.-based Lodestar Private Asset Management. He helps ambitious professionals and successful families reach financial independence.

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