A Real World Retirement Story

My father was ready for retirement. We had several discussions about picking the right time. Choosing when to retire is always a big decision. Conventional wisdom suggests the longer you wait, the better. You have more time to save and eliminate debt. Your Social Security benefit could be higher. On the other hand, how many people do you know who died before they could retire? There is something to be said for “getting out of the game” and enjoying your life.

We discussed a myriad of items. In the interest of brevity, let’s talk about two of them: finding the right insurance coverage and managing your time.

Health care is a big ticket item. No matter how well we take care of ourselves, our bodies will need more attention as we get older. Finding the right coverage is vital. Individuals over age 65 have Medicare Part A. Most people obtain supplemental insurance coverage since Part A does not pay for everything. Some plans are very expensive. Some plans provide minimal coverage at a reduced cost. Penalties can be incurred if one does not sign up for Medicare when required. And, if someone retires before age 65, coverage must be found to bridge the gap between the retirement date and Medicare eligibility.

I was overwhelmed. I arranged for my parents to meet with an insurance agent who specializes in Medicare plans.

Thanks to the draft, my dad spent a few years in the Army. His service gave him a permanent distaste for peeling potatoes. More importantly, it provided him with access to health care benefits. His previous employer’s insurance plan was awful, so he used the VA coverage as a supplement for years. He said the prescription drug discounts are good.

The agent found appropriate policies for both of my parents. My father’s supplemental policy needs were reduced by the VA coverage, whereas my mother needed increased coverage. It helped to have someone with Medicare knowledge guide them through the process. I highly recommend seeking help instead of trying to research it on your own.

She could not help us with the other problem: occupying my dad’s time. He is not a “lounge around the house” kind of guy. He must stay busy. He made a plan for the first year of retirement. He wanted to remodel the kitchen – build cabinets, replace the countertop himself, install new flooring, et cetera. He planned to tackle some home improvement projects at my house (yeah!). He wanted to get a dog which would give him a buddy and an excuse to get outdoors. Then, in about a year, he hoped to get a part-time job at a nearby home improvement store. He would be perfect for the job, and the store employs a lot of older workers.

He knew he could not be happy unless he was busy doing something. When considering retirement, it is very important to think about how one will occupy time previously spent working. We all have fantasies about what we would do. When faced with the reality of filling those hours, though, it can be a daunting task.

In the end, my father did retire. I saw an immediate “lightness.” He smiles and laughs easily. Plagued with ulcers and wicked reflux most of his life, his gastro issues have greatly improved. Retirement definitely agrees with him.

Someday, you may have the same conversations with your parents. My advice is to get help from people who know more than you – financial advisors, insurance experts, estate planning attorneys – whenever you encounter unfamiliar issues.

The same advice applies if you are considering retirement. There is more to the issue than whether or not you will have enough money. My parents and I spent almost a year talking about it. Just as you took time to find the right career or the right house, care should be taken with retirement planning too.

Of course, Parsec is here to guide you. Retirement matters are too complex to tackle alone.

Cristy Freeman, AAMS®
Senior Operations Associate

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Does Jiro Dream of Retirement Too?

I recently moved to the Asheville area after living in Atlanta for twelve years. Ironically, the seeds of my move started around the time I purchased my very first home in Brookhaven, a charming neighborhood in Atlanta. I say ironically because for the prior ten years I held a fairly good and financially stable job, yet had never considered buying a house. Why not you ask? Well, I wasn’t sure myself until last week when I watched the documentary, “Jiro Dreams of Sushi” – which, by the way, I highly recommend.

Jiro is a world-renowned – – perhaps the world-renowned – – sushi chef, operating a tiny ten-seat restaurant inside one of Tokyo’s hundreds of subway stations. Jiro seemed to have no worries about money as far as I could tell, and at age ninety-something, he wasn’t quite ready to retire either. Something about Jiro, his perspective on- and relationship to his work prompted questions within me, questions about my own career, my relationship to my work, and my dreams for the future. Because as far as I can tell, most of us, myself included, work and save, plan and invest, with the hope and dream of one day retiring so that we no longer have to work. But in Jiro’s case, his work was his dream. It was one and the same. Which really hit a nerve in me and at the same time provided some clarity.

What I realized was that for the ten years prior to buying my first house, despite having a good job that would allow me to do it, my dreams and plans for my future life did not involve doing the work I was doing at the time. Meaning, I was not fully engaged in my career or my life and as a result I was often on the lookout for an escape route – and buying a house would have been a major impediment to escape. The job was a good one, interesting enough, and certainly gave me financial stability, but I believed happiness lived in some other job, at some other firm, pursuing some other career. I became so hungry for change that in 2008 I actually quit my job and moved to France for nine months. Interestingly enough, despite a fantastic, and in many ways, unexpected trip, I came home to find myself in almost exactly the same place. I say almost because while the circumstances, people, and places looked about the same, my perspective had changed.

I returned to my old job, worked with the “old” coworkers, and rented another apartment in the same old city. But having lived across the pond, having had the experiences I had, and having returned, I saw in the end that there actually was no escape. Good news really, because before France I planned and saved my money to escape my life, but after France I planned and saved my money to live more deeply into my life. As a result of this small shift, life and I were much more on the same page. It was in the midst of this shift that I started taking a deeper interest in my work as a financial analyst. I became more curious and engaged, and in turn the work itself grew more engaging and satisfying. A virtuous cycle had begun and continues today. It was when I finally stepped into my life and stopped trying to escape it that a new life, as such, presented itself. Just a year and half after purchasing my first house in Atlanta, a new and exciting career and life opportunity presented itself, and in my dream-city (Asheville), no less.

All this to say, that while planning for retirement, setting goals, and making smart choices are hugely important and necessary components of a satisfying and rewarding retirement, so too is engaging with our current circumstances, in our current jobs, and in our current lives, just as they are today. Thanks Jiro.

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