Are You Ready for Six Saturdays and a Sunday? The Retirement Plan You Need the Most, but May Consider the Least

Part 2:? Diversification Applies to More Than Investing

In Part 1 of this three-part series, we explored the need to have a retirement plan that goes beyond the traditional financial plan in order to have a fulfilling next chapter. Backing this up, we learned from over 300 survey respondents that being emotionally prepared to retire has a higher correlation to high levels of personal fulfillment, than being only financially prepared. And, like the financial component, emotional preparation needs to begin while you are still working.

Transition expedition.? From a retirement preparedness view, the group of employees between the ages of 55 and 65 are typically called “transitioners.” This means that this group should consider reviewing their asset allocation and possibly transition to a more conservative allocation strategy while staying appropriately diversified.? There are droves of financial professionals who can help this group with these investment strategies, and given how complex this can be, everyone can benefit from a good Financial Advisor to guide them through it. That said, there’s another type of diversification rarely discussed during the planning process that can help this demographic to holistically navigate and succeed in their retirement transition, and into their next chapter.

?Build and Diversify Your Life Portfolios:

?Social portfolio.? What percent of your friends are through work?? Once you retire, many of those friends may still be working and have different priorities and availability than you.? If you’re overweighted in friends through work, it might be a good time to explore how to expand your friend community through other means. To start, you may look to places of common interest such as through religious organizations, the gym, or your hobbies.? And what if your only activities are work-related? That’s not uncommon. If you fall into this group, it might be time to get involved with additional things that interest you.? Maybe you can start with just one or two activities that don’t take up much time while you are working, and then expand your involvement once you retire.

In my retiree survey, of the individuals that were somewhat or very involved in outside activities while working, 63% increased their outside activities once they retired.? Start while you’re working, and you have a good chance to find additional activities, while naturally building meaningful connections outside of work.

When you’re new to exploring outside ventures you may ask yourself “how do I even begin to explore new interests and communities?” Anything new can be overwhelming and intimidating until you take that first step.? Survey respondents shared that their top outside activities included travel, volunteering, church, and education.?

To explore activities that pique your interest you might try reading a book I came across, 101 Fun Things to Do in Retirement by Stella Rheingold.? Phoenix Monroe takes this idea further in 1001 Fun Things to Do in Retirement .? (I haven’t yet found a book on 10,001 Fun Things to Do in Retirement, but I will keep looking.)

Passion portfolio. After a period, you may decide to “unretire.” ?I’m not suggesting that you go back to do the same thing you were doing, but for a different company. I am suggesting that you explore a passion, find a way to get paid for it, and put it into your life plan at your desired pace.? In Hyrum Smith’s book, Purposeful Retirement , he suggests that you ask yourself these probing questions:

·????? What do you feel passionate about doing?

·????? What brings you joy?

·????? Besides getting paid, what did you like about your last day job?

·????? What skills, talents, and business contacts can you take with you?

Your answers might lead you to find the perfect part-time job - providing some fulfillment and joy, yet at a pace that suits you.? Whether it’s 2 days a week, or 20 hours per week, all that matters is that it be an opportunity where you can apply your wisdom and experience in an area that you’re passionate about.? It’s a great way to meet people and open new networks.? It’s also a way to help you ease into your new lifestyle.

?A concept that I recently read a book about, and many of you may be aware of, is the Japanese idea of Ikigai.? It is defined as something that gives a person a sense of purpose, a reason for living. I found the Ikigai chart to be very compelling and supports much of what we are addressing in this article, and is another take on Hyrum Smith’s work. The four key components to identify in Ikigai are:

·????? What you love to do

·????? What you are good at doing

·????? What you can be paid to do

·????? What the world needs

A link to the Ikigai chart is here . When two circles of the Venn diagram intersect you can have a vocation, a profession, a mission, or a passion. The intersection of all four components is where your purpose resides. What better time to take on this pursuit than when you have additional time available, and the desire to find it.

If you’re interested in learning more about Ikigai, there are many books on the topic.? I enjoyed reading Ikigai, The Japanese Secret to a Long and Happy Life by Hector Garcia and Francesc Miralles.

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Pro-bono portfolio.?? Giving back and volunteerism is a huge topic of its own, but important to examine here. You’re retiring with incredible knowledge and experience that many non-profit organizations could use for board participation or projects.? I recently listened to a podcast by Ken Dychtwald , a great gerontologist and founder of Age Wave (and my first 401(k) customer back in 1989). He blew me away when he said that only 25% of retirees volunteer. There’s such an opportunity for the remaining 75% to find fulfillment through volunteering while applying tremendous amounts of wisdom and experience to a great cause.

“There is a fountain of youth:? it is your mind, your talents, the creativity you bring to your life and the lives of people you love.? When you learn to tap this source, you will truly have defeated age.”? ---Sophia Loren

To find the right organization, there are websites to guide you. Here in Colorado, www.volunteermatch.org has a search engine where you can input your location and select from a long list of target-community categories, and the site points you to a list of non-profit organizations with their current volunteer openings.

Sometimes one volunteer opportunity will open doors to another opportunity and another organization, and organically your network will grow. This is also an outstanding way to diversify your friend community.? I’ve always found my volunteer efforts to be very rewarding and I’m so grateful for the incredible relationships I’ve gained through them. Volunteerism can play a key role in your ideal retirement.

“If you want happiness for an hour, take a nap.

If you want happiness for a day, go fishing.

If you want happiness for a year, inherit a fortune.

If you want happiness for a lifetime, help somebody.”

----Chinese Proverb

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So, I ask you: As you think ahead and envision what your “day in the life” in retirement looks like, do you have a diverse array of activities to point your energy toward, and could you benefit from looking at your own life portfolios?

Ponder as you plan:

1)???? What does your current social circle look like, and are your friendships adequately diversified between in work and outside of work?

2)???? Do you participate in enough activities outside of work that you’ll be able to continue with and expand on as you approach retirement??

3)???? Do you currently volunteer for any non-profit organizations?? If not, do you have an idea of which organizations or causes you would like to explore?

4)???? Should you explore your own Ikigai as pre-work to unearth your unique, purposeful lens on your next chapter?

5)???? Have you thought about a passion project or pursuit that could transition into a part-time role?? What area of work would it be?? Do you know of organizations that do that type of work and could use some help?

Thanks for reading and I welcome your comments on how these diversified life portfolios can be a contributor to having a truly “rich” retirement.? And, are there any other areas you suggest transitioners diversify or explore as they move to their next chapter?

If you haven’t yet, follow me to catch Part 3 dropping next week, where we’ll look at how marriages and partnerships are affected by this impactful transition.

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