THE RETIREMENT LIFECYCLES

Cory and I flipped the script on this week’s episode of Upticks—I knew little to nothing prior to hitting the record button on, The Retirement Lifecycle. We talked about the different phases of retirement, which are often called the Go-Go Years, the Slow-Go Years and the No-Go Years. Make sure to tune in to hear our entire conversation about retirement’s stages, as well as Jake’s recent win at the Falcon Wealth Advisors Tour event at Sycamore Ridge Golf Club.

Cory: When we develop financial plans for clients, we’re often planning for a 30+ year retirement. Many people think of retirement as the second half of their life. Jake, let’s first focus on the Go-Go Years, which are typically the first 10 or so years of retirement. What advice would you give to someone preparing for this first phase of retirement?

Jake: I’m in my 17th year as a wealth advisor, which means I’ve seen some of my original clients live their Go-Go Years from start to finish. My advice for someone entering their Go-Go Years is to go do the things you’ve wanted to. You shouldn’t totally throw caution to the wind—it’s important to make sure your financial plan remains on a positive trajectory—but if there’s a trip you’ve wanted to take, a vacation home you’ve wanted to buy, now is the time. I even encourage some clients to spend a little more than they were planning to in the Go-Go Years, because most people spend less later in retirement.

It’s also fun to see some clients make a little money and fill their time in their Go-Go Years with a job they genuinely enjoy, whether it’s being a rideshare driver, blogging or any number of paths.

Cory: I recently read someone write about “early retirement adventures,” “mid-retirement realities” and “late retirement reflections.” When you started saving in your 401(k), what did you envision you would be doing when you were done working? The Go-Go Years are indeed the time for adventures.

Jake: Yes! It’s also a good time to check in on your values and purpose. We want you to spend your money with intentionality. It’s as important as ever to align your spending and values in retirement. Aim to cut out items that cost you money but don’t bring you joy or satisfaction.

Cory: To that point, someone’s perspective at 55 or 60 is going to be different than it was 20 years prior. I’ve worked with a lot of retired clients who are more interested in traveling and spending time with their families than driving a fancy car or living in a big house.

Let’s now talk about the next phase of retirement, the Slow-Go Years, which usually happen somewhere between 70 and 85. What advice do you have for these clients?

Jake: They’re often looking to simplify and cut costs. They’re done spending, traveling less, and they want to enjoy their health, families and friends. Not all clients want to slow down in their 70s, which is great, but many do want to step back and simplify their lives.

Sometimes these years are the best years of someone’s life. After a long career and checking off boxes in the Go-Go Years, now they can go with the flow and enjoy life.

Cory: I totally agree. It’s another natural time to reassess your goals, plans and what’s important to you.

Let’s now talk about the No-Go Years, the time for those late retirement reflections. What advice do you give to these clients?

Jake: Simply to enjoy the day, stay as healthy as they can and take care of themselves. It’s of course not too late to learn and grow, but these years are about focusing on health and happiness. Clients often want to make sure their family is taken care of and that they’ve planned for their legacy, which can include charitable giving.

Cory: While these years can be sad and difficult, many people still find happiness and contentment during the No-Go Years. Change is of course a big part of life.

The other advice I give to Falcon Wealth Advisors clients in the No-Go Years is to find ways to have social engagements with others. Having networks of people close to you is important in these years. And you often also have to come to terms with physical limitations during these years.

Jake: I think it’s awesome how many of our clients have long retirements. At Falcon Wealth Advisors, we’re humbled to be so involved in their retirements, as we work with clients to help ensure they can have the retirement they’ve wanted.

Cory: Indeed, helping clients get where they want to go and do what they’ve wanted to do is one of my favorite parts of my role. Our team strives to help clients understand what their financial plan means to them so they can accomplish their goals and pursue their passions.

To end our show, Jake, how do you advise people to do what they want in that first decade of retirement without jeopardizing their future?

Jake: We can plan for clients to spend more on their Go-Go Years than the other phases of retirement. But we make sure clients understand they can’t keep up this rate of spending for 30 years. And if a client’s spending is putting their financial plan in jeopardy, we of course have honest discussions about that. That’s why it’s so important to meet with your fiduciary wealth advisor regularly.

What’s nice about a financial plan is it’s not a roadmap set in stone. It’s a living, breathing document. Taxes and market performance can change it, as can your spending. Just like everything in life, financial planning requires being nimble and open to change.

Cory: And while many people successfully financially prepare to retire, they don’t take the time to think about what a 30+ year retirement will look like. Before you retire, it’s important to think about how you will spend your time and what your purpose will be in retirement.

Jake: This was a good topic, Cory. Next week we are overhauling the entire format of Upticks so be sure to tune in!? And if you have any general questions you would like us to answer on Upticks, please email them to our communications manager Luke Sullivan. Lastly, we will no longer be transcribing our show as our new format will be more conversational and will cover more current events.? Be sure to listen or watch!? Have any feedback?? Let us know by sending anyone of us an email.

If you would like to meet with Falcon Wealth Advisors to discuss how you can plan for the 30 year retirement you want, please don’t hesitate to reach out. You can reach us directly at [email protected] and [email protected].

Clients choose to work with us to enhance their financial literacy and explain exactly what their financial plan means to them.

Hightower Advisors, LLC is an SEC registered investment adviser. Securities are offered through Hightower Securities, LLC member FINRA and SIPC. Hightower Advisors, LLC or any of its affiliates do not provide tax or legal advice. This material is not intended or written to provide and should not be relied upon or used as a substitute for tax or legal advice. Information contained herein does not consider an individual’s or entity’s specific circumstances or applicable governing law, which may vary from jurisdiction to jurisdiction and be subject to change. Clients are urged to consult their tax or legal advisor for related questions.