ST. CROIX INSIGHTS

We got retirement all wrong

BY BRETT ANDERSON/ST.CROIX ADVISORS, LLC

retirement all wrong

We got retirement all wrong, but we don’t want to admit it. It’s not surprising. It’s something I hear on a regular basis. Just change the dollar amount for how much your household makes. I bet most of us can relate especially when you have a couple of kids, mortgage, car payment, are saving for retirement, etc.

Even if you think you have it all figured out, you may have gotten retirement all wrong. Over my vast experience in the financial services world, talking with hundreds if not over a thousand people, it’s generally not the mortgage or the car payment, but rather just everyday life that really gets us. It all adds up. $5 here, $50 there, $250 here- it all adds up to real money each month. It’s financial leakage. We all have it, yet, some of us are better than others at controlling it. 

Here’s an excerpt from another article I’ve written about the topic:

Chances are you’ll hit the retirement lottery one day and it may well be your biggest payday ever.

For most it comes in one of two forms – the sale proceeds of your business or that 401(k) you’ve been saving in for the last thirty years. Either way you are going from working for a paycheck to “mailbox money.” And I have to tell you nothing beats mailbox money because it just shows up for your retirement enjoyment.

When you cash in your “retirement lottery ticket” I have a few observations from many years of working with clients. When you go from working day in/day out and earning a paycheck every two weeks for the fruits of your labor, you’ve had one philosophy for your money. But after you retire, and often within three to six weeks and certainly within six months, you’ll develop a different philosophy towards money. And chances are you’ll become more conservative, desiring to spend less to preserve what you have.

During this time, I would recommend you do not to commit to any major purchases that you may regret.

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Ask yourself- can my portfolio support my lifestyle in my retirement? 

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