Safe 4 Retirement: The Four Keys to a Safe Retirement

Safe 4 Retirement: The Four Keys to a Safe Retirement

ISBN: 978-0-615-52007-0

Copyright © 2011 by Jack Tatar

Pennington, NJ 08534

Library of Congress Control Number: 2011915415

Published by PeopleTested® Publications

www.PeopleTested.com

Printed in the United States of America. All rights reserved under International Copyright Law. Contents and/or cover may not be reproduced in whole or in part in any form without the express written consent of the Publisher.

Introduction

In 2009, my dad died after a battle with prostate cancer.

Six months later, my mom and our family enjoyed a beautiful Sunday afternoon on the back deck of my house. The next day, I had to take my mom to the hospital where she died two days later due to a toxic condition and colon cancer (which she had left untreated and had told none of her family or friends about).

My parents had been married for over 50 years and retired for nearly a decade.

In my sorrow, a few weeks later, I ventured cross-country to spend a weekend with my friend, Sam Kirk, in Los Angeles. His recommended treatment of drinking tequila, smoking cigars, and watching planes fly over his Santa Monica home all night allowed me to open up and discuss my grief with one of my closest friends.

We discussed how people would often say that it was not uncommon for a spouse to die so soon after the loss of the other spouse. If this were true, I wondered why it was so.

Sam, who has been involved with family and social issues for decades in Los Angeles, felt that much of it has to do with the fact that many people are thrust into retirement and often aren’t prepared for all of the aspects of it that are new and different for them. For some retirees, they’re unable to change their lives to a new schedule and often fall into a comfort zone with their spouses while missing the social aspects they enjoyed when working.

Sam said that he had seen many retirees neglect their health and become grumpy and irritable simply because they were unable to deal with all of the free time they now had. He said that he had recently been working with seniors on creating a channel for volunteering opportunities for them because many of them didn’t know what to do with their free time. He felt that this becomes an even more critical issue when a retiree loses their spouse or a close friend.

There’s plenty of books about being financially prepared for retirement, but there aren’t books that consider all of the aspects that are needed to consider when someone retires. How to take care of their health? What to do with their free time? How to stay connected to friends and create more friends? How to stay positive when your family and friends are moving away and/or dying? Ultimately, they need to understand how to create a safe retirement.

Sam, who works with many young mothers as well, continued, "They have a What to Expect When You’re Expecting book for new mothers, but there needs to be a similar book that explains all of the things needed to prepare for and enjoy a safe retirement."

This book grew out of that conversation.

Writing this book was not in my plans three years ago. In fact, many people have told me that writing a book is painful and will take too much time away from my business.

I run a market research business called GEM Research Solutions that requires me to travel frequently and speak with thousands of individuals each year, either in focus groups or face to face or over the phone through one on one interviews. Because of the work I do, I’ve seen commercials that no one will ever get to see and I’ve asked people to eat food products that no one will ever eat again (and that’s a good thing!). I get paid to listen to people and gather their opinions and insights about new products and marketing efforts for some of the largest companies in the world today.

Because of my many experiences in the financial industry (I tend to specialize in that industry as I was a financial advisor with Merrill Lynch prior to starting my market research business), I have the opportunity to speak to financial advisors, retirees, and pre-retirees about the challenges and concerns of retirement in the current environment.

This book incorporates what I gleamed from speaking to these many individuals as well as from the current research in the field of retirement and from personal insights I’ve gained from my own experience in considering retirement as the next step in my life.

It’s not an exhaustive study, and I’ve come to learn that things change so frequently in this area that I’ve had to constantly edit and update information prior to publication.Because of this, I’ve created a Web site that is a companion to this book, www.Safe4Retirement.com, where the latest information on these topics will be updated and available for free. I’ve also included many footnotes in each section that provide links to valuable Web content and helpful information on the topics covered in a section.

It’s been a big undertaking to do this book and Web site. This is not something I’ve done because of profit motives or recognition, but rather it’s something that I’ve been compelled to do since my mom’s death.

Writing it has helped me to make some sense of my parents’ deaths, and I know that they would want me to do this. I can hear my mom saying. If it can help at least one person to view their retirement differently and allow them to spend more years on this wonderful planet with their loving family than they would’ve if they hadn’t done something that this book recommends, then you did the right thing.

The book is dedicated to

my parents,

Bob and Ellen Tatar.

I miss them every day.

Above all, this is a book that I wish

they’d been able to read before they died.

Realizing the Dream

Retirement. It’s what some of us dream of from the moment we take our first jobs.

We study, perhaps earn a degree (or even a lot of them), work, raise our families, and all so we can achieve the Golden Years. So for the vast majority of us, what determines when we’re finally ready to hang up the spurs?

This is a good question and often the primary way to answer this is to see if we have enough money. I believe that thinking about retirement is more that just understanding if we can financially do it.

Most books about retirement written today deal exclusively about financial planning for retirement. This is not one of those books.

My intent with this book is to present a holistic approach to retirement planning and living in retirement, more than what you’ll find in most other books about retirement.

My dad used to have a big keyring dangling from his pants. On it were all the keys that he felt were necessary to carry with him every day. I can still remember him running out the door to answer the volunteer fire alarm and hearing those keys clanging on his way out the door. His belief was that he needed to always carry all of his keys so he never lost one or forgot one.

It was thinking about that clanging bulky keyring that made me consider that all retirees need to possess similar multiple keys to ensure their own safety in retirement. This has less to do with the fact that when we retire, we may forget where we place things. Rather it has everything to do with the fact that in retirement, life will be wonderful, but life will also come with its challenges. We all have the opportunity to live a wonderful and safe retirement. I believe that our ability to do this will depend on our discipline in maintaining a keyring that contains these Four Keys as we proceed through our retirement:

Financial Preparedness

Health and Wellness

Mental Attitude

Staying Involved

This book will explore all four of these keys in depth and provide you the reasons why they are important and a game plan that will allow you to effectively address what is needed to ensure success in each of these areas.

When reading through this book, it’s important to understand that everyone’s situation is different. The important thing is that you gather what pertains to you and act upon it.

This book is to be used by those planning to retire, as well as those already in retirement. It is also appropriate for the working children of retired or soon to be retired parents, in order to not only advise your parents, but also to prepare yourself for what considerations may be needed as your parents begin, and live longer in, their retirement.

The intent of this book is not to be a James Patterson page-turner, but rather to function as a book that you can pick up at any page and hopefully pick up some good advice or a helpful hint that can help to create a safer and longer retirement.

However, if you want to read it as a James Patterson page-turner, you won’t be disappointed. I believe that retirement is a journey, and I’ve tried to convey that journey in the structure of this book.

As I’ve mentioned, most books on retirement today deal exclusively with the aspects of having enough money to retire. We cover this and more in the first section where we discuss our concept of Financial Preparedness. This section provides a game plan and requires work on the part of the reader. This is necessary work, and when completed, it should answer the questions that you have about being financial prepared for retirement.This topic is often the one that brings the most questions from those retiring or in retirement. Will I have enough? What happens if I need more money? That’s why you notice that this section is structured in a manner to respond to the questions that the reader has.

At the end of this section, I hope that you’ll be in a better and more secure place and will have your questions answered, or at least be well on your way to knowing what you need to do in order to be financial prepared for retirement.

The difference with this book from others about retirement is that where most other retirement books would stop, this one is just getting started!

To me, it’s common sense that a safe retirement not only depends on how much money I have but also on how healthy I am. Remember that old uncle who always said, If you don’t have your health, you have nothing? Well, he was right.

So the next section covers the vital topic of ensuring that we keep our health and wellness in check. Although everyone’s situation is different and the scientific landscape keeps changing and evolving, the reality is that we now know enough about what we need to do to monitor and improve our health. This section is therefore appropriately structured as a how-to on these matters of health and wellness.

As parents, many of us complain when our children don’t listen to us when we tell them to do things that we know are good for them to do. You know from experience what those are and you are frustrated when your kids don’t listen to you and take your advice.

Well, the reality is that there is enough knowledge and information out there about taking care of your health; what you need to do is to follow this advice!

So, the section on the Second Key, Health and Wellness, provides you with this information. Don’t be a knucklehead. Follow the advice and tips in this section along with what your doctor and children tell you.

Once you’ve read this far, you’ll soon be at a point where you have a plan for your financial and physical well-being. At this halfway point, you can take a deep breath and begin to focus on you. By this I mean that you need to take a good hard look at your own personal mental attitude. In retirement many things, both good and bad, will occur. You need to be in a good place mentally and spiritually to ensure that you’ll have a Safe Retirement.

The Third Key focuses on your mental attitude. I need to stress the your. No one else can tell you how to think or how to feel. This is a very personal section of the book and certainly provides a unique perspective for a retirement book. But let’s face it, how many people do we see enjoying their retirements simply because they have a positive outlook on things? They’re the people smiling, enjoying themselves, and helping others. If they’re not insane, we envy them.

We’ve all seen the other side as well—the grumpy old man or woman who has been beaten by life and is spending their retirement awaiting little more than his or her own death. They live their retirement full of regrets, anger, and loneliness. This is not a Safe Retirement, and since you’ve spent the money for this book, I will not let that happen to you.

Section Three is the me section. This will be your opportunity to explore who you are and how you want to live the rest of your life. For many this may be the first time that you’ve been able to do this and explore, really explore, who you are and what makes you happy. This is actually my favorite section of the book and the one that I hope becomes your favorite as well.

After you’ve done your exploring, it’s time to really kick your retirement into gear. The Fourth Key is all about enjoying retirement. The way to do this is to get and stay involved. It’s impossible for this section to list all of the activities and opportunities that you have ahead of you in retirement. Even though we try our best to maintain a comprehensive listing on our companion Web site, www.Safe4Retirement.com, the reality is that these opportunities are limitless and range from mission trips to Asia to simply playing bingo or bridge with friends.

This section is personal to me. After my dad’s death, my mom was not as involved with others as she could have been. Ultimately, this had an impact on her well-being and probably had much to do with her death six months after my dad passed.

I don’t want this to happen to you. Retirement is a time to celebrate, a time to live and enjoy. The way to do that is to get involved with old friends and new friends. I hope this last section, the Fourth Key, can help you find those opportunities. It is a vital piece in your ability to create and maintain a Safe Retirement.

Creating and living a Safe Retirement.

That’s what this book is all about.

Enough of my yakking. Let’s get going! Your Safe Retirement awaits you.

Wait! One more thing…

I need to thank the following people for making this book possible:

First, my dear friend, Sam Kirk, without whom this book would not exist. Love you, buddy! Thanks!

The lovely and talented Karen Lacey for all of her writing and editing assistance. No KLacey, no book! Thanks!

Diane Young, who I have the good fortune of having as a wonderful friend and who is one of the leading experts on retirement planning in the country. Your insights were critical! Thanks!

My literary mentor, Ira Dittersdorf, for his guidance and advice and for helping me get through college English. See you on Bloomsday!

My sister, Regina, and her children, Sean and Jillian. This book is for you as well!

My kids, Eric and Grace. Success in life lies in one’s ability to know your priorities. You guys are my priorities and without you, I’m nothing. You are two of the bravest people I have ever met. You are the world to me!

Most importantly, my wife, Maude, who has suffered through three decades of me and my many crazy ideas. Thanks for sticking with me. I know that God exists because He gave me you. I love you always.

What Does

Financial Preparedness Mean?

Most books on retirement written today focus on the aspect that many consider to be the end point of retirement planning: having enough money to retire. It’s often the measuring stick that people use to decide when they can retire and what lifestyle they can afford to have in retirement.

I call it Financial Preparedness, and although it’s important, it’s only one of what I consider to be the Four Keys that are critical for achieving a safe retirement.

This first section is not intended to be an exhaustive and complete guide to all of the financial aspects of retirement planning. There are enough books out there that are dedicated solely to that purpose. Rather, this section will provide you with enough information and direction to make the important decisions about your ability to be financially prepared for retirement.

Throughout the book, we’ll direct you to our companion Web site, www.Safe4Retirement.com, which will provide you with current and updated Web links, worksheets, and further information that you should evaluate on your own to fully gain the financial insights and details that are specific to your own situation.

I find that most financial books on the market today that discuss retirement planning come with an agenda and a set way of doing things. You will find that I also have strong opinions on things as well. However, this section is not intended to be the be all and end all of financial information, and it’s important to understand that everyone’s situation is different and no book could completely satisfy everyone.

The value of this section will be in its ability to help guide and motivate you to gather information, prepare a plan, and understand your financial preparedness for retirement. However, with the advice in this book and with any advice you gain from anyone regarding your finances, you must remember that it’s your money and, therefore, decisions related to that money should always be your decisions. These decisions may be made with your family, but it’s critical to remember that you’re the one in control.

To start, let’s think of where we are today. Many of us may still have financial obligations—mortgages, perhaps car and/or student loans, credit card debt, kids we’re putting through college, and maybe parents whose health has failed and need extra help of one kind or another.

Or we could be single, divorced, or widowed and on a sole income with or without any of the combination of events above. But the end goal is the same when thinking about retirement—when do we have enough money to say, adios amigos, see you at the beach?

Although it may be the amount of money we have that determines if and when we can retire, the reasons for wanting to retire vary—spend more time with the family, take on new projects, follow those dreams or hobbies that have lain smoldering for all those years.

In this chapter we’ll seek to answer the vital questions that will help you secure the First Key to a Safe Retirement: Being Financially Prepared for Retirement.

How do we know when our financial situation provides us the opportunity to confidently and safely consider retirement?

How do we avoid being a case of someone who had to interrupt a safe retirement because of not being financially prepared for retirement?

So, what do we mean by the term, Financial Preparedness?

At its simplest, financial preparedness consists of doing three things:

Step 1: We determine exactly where we currently are financially and what we need to retire.

Step 2: We create a plan for maintaining that financial level.

Step 3: We allow for things to go wrong.

A traditional definition of a financially safe retirement means having enough money for you and your immediate family to live comfortably off without being forced to go back to work, and with enough of a cushion to allow for a realistic deluge of the unexpected.

However, today’s baby boomer doesn’t necessarily fit what would be considered the traditional category.

Checkered golf slacks and once a week bridge games may or may not be what you have in mind for yourself or your spouse when you think of retirement. Many soon-to-be-retirees have plans to travel, to start new businesses, to write the book they’ve always wanted to, or any of a million other activities that previous generations less willingly ventured into. Others of you will want to do nothing but swing in your hammocks, whether it’s in Florida, Minnesota, or on a tiny island in the Caribbean, and sip the libation of choice.

The point here is the dream itself can be anything. That’s the good news.

What’s mandatory is to have a written goal and a plan related to your finances. And that’s where this section can help.

Sure, people retire all the time without a plan. "Plans are for sissies," they rumble into their pinot noirs. I know how much I’ve got and that’s all I need to know. Fine, I say to them. If you’ve got it all down, bully for you.

But moving ahead with a plan, and a plan based on sound financial advice and follow through, may not fully allow you to eliminate risk, but it will at least cushion