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 believe you have a solid grasp of your financial situation, the reality is that you may have misjudged retirement. Drawing from my extensive experience in the financial services realm, having conversations with hundreds, if not over a thousand people, it’s often not the mortgage or car payment that poses the greatest challenge — it’s the day-to-day expenses that accumulate.

Those seemingly inconspicuous amounts, like $5 here, $50 there, or $250 here, collectively add up to significant money each month—a phenomenon commonly referred to as financial leakage. While everyone experiences it, some individuals are more adept at controlling it than others.

Consider this quote from another article I’ve penned on the subject:

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.

From my years of working with clients, I’ve observed that within three to six weeks, and certainly within six months of retirement, individuals often develop a different philosophy towards money. This shift is typically towards a more conservative approach, prioritizing spending less to preserve their financial assets.

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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