Home About Archives RSS Feed

The Independent Investor: Unhappily Ever After

By Bill Schmick
iBerkshires Columnist

Over the next decade roughly 75 million Americans will retire. While most of us are well-aware of the need to plan, save and invest for that momentous moment, very few of us are actually prepared for the non-financial challenges of retirement itself.

Recently, as a result of one local company’s early retirement incentive plan, as well as the bankruptcy of a local hospital, I have had some firsthand experience in dealing with the expectations of retiring clients in this area. What I have found is that the majority of men are ill-prepared for retirement, more so than women. At the same time, their spouses are extremely worried — with good reason.

Studies show that men have a much harder time adjusting to retirement than do women and are far more naive in understanding what retirement does to one’s quality of life. Those who retire unexpectedly due to sickness, job loss, those who have become accustomed to working long hours or who bring their work home with them have the most difficulty in retirement.

It seems that most men tend to define themselves and their self-worth on the basis of their careers and the money they make. After 30 or 40 years of polishing their identities as providers, senior workers and/or producers, they find themselves at a loss when that ends. Many men are suddenly faced with an identity crisis they have not confronted since they were teenagers. The more of a workaholic they are, the less likely they will have developed other outside interests that could help define and transition them to a new identity and role.

Women, on the other hand, are much more likely to have several roles — worker, mother-caregiver, community activists, etc. — throughout their life, all of which aid in a transition to retirement. Women are much more likely to have had their working careers interrupted by child-rearing or by taking care of elderly parents than men.

I know my own wife, Barbara, the COO of our company, also maintains a successful career as a photographer, has a large network of friends and acquaintances and is a member of several community organizations and social groups. In general, I believe women tend to be more engaged with others and more connected to their communities in terms of social support and networking. Retirement, to them, may be just another change in a life that is full of changes.

Seventy-five percent of workers believed that their quality of life would improve once they retired, but only 40 percent of retirees found that it actually did. So if you are planning to retire, forget about your dreams of being perfectly happy walking on the beach every day or playing golf or minding the grandkids. None of that is guaranteed to fulfill you, or even hold your interest beyond the first couple of months. There is no free lunch in retirement.

The only sure thing in retirement is that at some point you will die. Your problems do not disappear, they just change in nature and many times, your problems actually grow in size and importance (since you have little to distract you).  Sure, you may live longer by retiring from a stressful job that was either physically or mentally taxing, but that doesn’t mean you will live healthier.  Your chances of becoming addicted to alcohol, narcotics or prescription pills actually increase.

Finally, the most important truth of all is that you will never be able to save enough money to retire happily ever after because money and happiness have nothing to do with each other. In my next column, I will give you some pointers on how to become one of those 40% of retirees who actually enjoy retired life. I’ll leave you with a big hint — it starts with your spouse.

Bill Schmick is registered as an investment adviser representative with Berkshire Money Management. Bill’s forecasts and opinions are purely his own. None of the information presented here should be construed as an endorsement of BMM or a solicitation to become a client of BMM. Direct inquires to Bill at 1-888-232-6072 (toll free) or email him at Bill@afewdollarsmore.com.

0 Comments
     

Support Local News

We show up at hurricanes, budget meetings, high school games, accidents, fires and community events. We show up at celebrations and tragedies and everything in between. We show up so our readers can learn about pivotal events that affect their communities and their lives.

How important is local news to you? You can support independent, unbiased journalism and help iBerkshires grow for as a little as the cost of a cup of coffee a week.

News Headlines
Cecropia, Our Sylvan King
Letter: 180 Households Are Saving With Community Solar
Big Names, Great Popular Music Land in Berkshires
Classical 'High Season' Bursts Upon the Scene
Don't Let Your Investments Go on 'Vacation'
Cultural Pittsfield This Week: June 20-26
Berkshire County Juniors Golf Series Kicks Off July 9
BRPC: Chapter 90 Spending Trails at Least a Year Behind
Yola Esther Developer Settles With State, Asks Pittsfield to Accept Roads
North Adams Airport OKs Hangar Space for Kelly

Bill Schmick is registered as an investment advisor representative and portfolio manager with Berkshire Money Management (BMM), managing over $200 million for investors in the Berkshires. Bill’s forecasts and opinions are purely his own and do not necessarily represent the views of BMM. None of his commentary is or should be considered investment advice. Anyone seeking individualized investment advice should contact a qualified investment adviser. None of the information presented in this article is intended to be and should not be construed as an endorsement of BMM or a solicitation to become a client of BMM. The reader should not assume that any strategies, or specific investments discussed are employed, bought, sold or held by BMM. Direct your inquiries to Bill at 1-888-232-6072 (toll free) or email him at Bill@afewdollarsmore.com Visit www.afewdollarsmore.com for more of Bill’s insights.

 

 

 



Categories:
@theMarket (261)
Independent Investor (356)
Archives:
June 2018 (4)
June 2017 (2)
May 2018 (8)
April 2018 (7)
March 2018 (6)
February 2018 (7)
January 2018 (7)
December 2017 (8)
November 2017 (5)
October 2017 (5)
September 2017 (5)
July 2017 (2)
Tags:
Crisis Bailout Economy Greece Interest Rates Euro Debt Ceiling Rally Europe Energy Jobs Currency Debt Fiscal Cliff Metals Wall Street Taxes Stock Market Pullback Retirement Election Congress Oil Stocks Federal Reserve Housing Recession Europe Deficit Banks Markets Japan Stimulus Selloff Commodities
Popular Entries:
The Independent Investor: Don't Fight the Fed
@theMarket: QE II Supports the Markets
The Independent Investor: Understanding the Foreclosure Scandal
@theMarket: Markets Are Going Higher
The Independent Investor: Does Cash Mean Currencies?
The Independent Investor: General Motors — Back to the Future
@theMarket: Economy Sputters, Stocks Stutter
The Independent Investor: Why Are Interest Rates Rising?
The Independent Investor: How Will Wall Street II Play on Main Street?
The Independent Investor: Will the Municipal Bond Massacre Continue?
Recent Entries:
@theMarket: Trump's $50 Billion in Chinese Tariffs Trashes Markets
The Independent Investor: How to Avoid Recession? Emigrate to Australia
The Independent Investor: Trump's trade war
@theMarket: Another Week of Market Volatility
The Independent Investor: Italy's Crisis Threatens Financial Markets
@theMarket: Nothing Memorable in the Markets this Week
The Independent Investor: It Is No Longer Enough to Simply Manage Money
The Independent Investor: Are Americans Saving Enough for Retirement?
@the Market: Stocks Look Ready to Reach New Highs
The Independent Investor: What's Up With Oil?