The “Retirement Red Zone”: The 5 Years Before and After You Retire
My Dad’s Financial Advisor Gave Him a Terrifying Football Analogy
My dad is 62 and calls the years right around retirement the ‘Red Zone.’ His planner told him it’s like the last 20 yards in football. A big market crash right now would be like fumbling on the one-yard line—there’s no time left on the clock to recover the loss. He’s had to shift his investments to be much more conservative, sacrificing growth for safety. Watching his stress has been my biggest lesson. The more I save and grow my money now, the bigger my lead will be, so I won’t have to sweat the Red Zone later.
I Moved My Entire Portfolio Into “Safe” Investments. Here’s What Happened.
My Aunt Played It Safe, and Now She’s Losing
My aunt, who is 60, got spooked by a news report about a potential recession. She sold all her stocks and moved her entire $800,000 portfolio into a savings account, thinking she was protecting it. But with inflation running high, her “safe” money is losing purchasing power every single day. She protected herself from a market crash but exposed herself to the silent thief of inflation. Her situation taught me that being too safe with your money is its own kind of risk, especially when you have decades for it to grow.
The Sequence of Returns Risk: The Monster That Can Kill Your Retirement
My Dad’s Story of Two Identical Millionaire Retirees
My dad explained this terrifying concept to me. Imagine two people retire with a million dollars. One retires and the market soars for three years. The other retires and the market crashes for three years. Even if their average returns over 30 years are identical, the second person could run out of money. Why? Because they are selling their stocks at low prices early on to live, permanently damaging their portfolio’s ability to recover. His lesson was simple: the market’s performance in your first few years of retirement is pure luck, so you better have a big enough cushion.
How I’m Building a “Recession-Proof” Retirement Income Stream
My Mentor’s Plan to Get Paid Even When the Market Crashes
My mentor, who plans to retire in five years, is obsessed with creating income streams that don’t rely on the stock market. She just bought her second small rental condo. Her goal is for the monthly rent checks to cover all her basic living expenses—food, utilities, and taxes. That way, if the market crashes the year she retires, she won’t have to sell any of her stocks at a loss to pay her bills. She can just live off the rent and wait for the market to recover. It’s a brilliant strategy for de-risking her future.
The Million-Dollar Question: When Should You Actually Claim Social Security?
The Annual Argument My Parents Have About Free Money
My parents, both 63, are having a huge debate about when to claim Social Security. My mom wants to take it now for a smaller check. My dad wants to wait until he’s 70 to get a much larger monthly payment for the rest of his life. He argues that for every year he waits past his full retirement age, his benefit grows by about 8%. It’s a massive, risk-free return. Watching them debate this has made me realize Social Security isn’t just a simple benefit; it’s a strategic decision that can be worth tens of thousands.
My “Test Run” Retirement: I Lived on My Retirement Budget for a Year
The Year My Boss Decided to Practice Being Retired
My boss, who is 58, wanted to know if her retirement budget was realistic. So for an entire year, she did a “test run.” She calculated her expected retirement income from pensions and investments, transferred that exact amount into her checking account each month, and tried to live on it. She said it was an eye-opening experience. She learned she had underestimated her travel and healthcare costs but overestimated her utility bills. It gave her time to adjust her plan before she actually quit her job, avoiding a painful surprise.
The Roth Conversion Ladder: How I’m Creating Tax-Free Income for Retirement
The “Tax Loophole” My Cousin is Using to Retire at 50
My cousin is planning to retire at 50. I asked him how he’ll get money from his 401(k) without paying a penalty before age 59 and a half. He told me about his Roth Conversion Ladder. Each year, he’s converting a portion of his traditional 401(k) to a Roth IRA and paying the income taxes on it now. After a five-year waiting period, he can withdraw that converted amount tax- and penalty-free. He’s building a five-year “ladder” of conversions now so he’ll have a steady stream of tax-free cash waiting for him.
Why I’m Moving to a State With No Income Tax
The Math My Uncle Did on a Napkin
My uncle is 62 and lives in California. He did some quick math for me on a napkin. He showed me that if he retired there, his state income tax on his retirement withdrawals would be almost $15,000 per year. By moving to Nevada, a state with no income tax, he’s giving himself an instant $15,000 raise in retirement. He said that after a lifetime of paying taxes, he wants to keep every dollar he can. It made me realize that your location is one of the biggest and simplest levers you can pull to optimize your finances.
The Healthcare Cost That Blindsided Me Right Before Retirement
The $10,000 Surprise My Mom Got at 64
My mom retired at 64, a year before she was eligible for Medicare. She thought she was covered because she could get a plan on the healthcare exchange. But she was blindsided when she saw the price. Because she no longer had an employer subsidy, a decent plan for that one-year gap was going to cost her nearly $10,000. It was a huge, unexpected expense that ate into her savings right at the starting line. Her costly lesson taught me to meticulously plan for the healthcare bridge between work and Medicare. It’s a gap many people forget.
The One Document You MUST Have in Place Before You Retire (It’s Not a Will)
The Paper That Saved My Friend’s Family From a Nightmare
My friend’s 63-year-old father had a sudden stroke and became incapacitated. It was a terrible time, made worse because he didn’t have a durable power of attorney for finances. No one could pay his bills, manage his investments, or even access his bank account to cover his medical care. It took them months of expensive legal battles to gain control. His wife told me, “Everyone has a will for when they die, but no one plans for being unable to make their own decisions.” I had a power of attorney document drafted the next week.
I’m 60. Should I Pay Off My Mortgage or Invest the Cash?
The Two Paths My Dad Considered for His Final Bonus
My dad got one last big bonus before retiring. He was 60 and had to decide what to do with the $50,000. Should he pay off the last chunk of his mortgage to be debt-free? Or should he invest it? His mortgage rate was only 3%, but he knew he could likely earn a 7% average return in the market. He chose to invest the money, reasoning the math was on his side. But he admitted the psychological comfort of paying it off was almost worth the lower return. It’s a classic math vs. emotion dilemma.
The “4% Rule” is Dead. Here’s What I’m Using Instead.
The New Rule My Financial Planner Dad Follows
My dad used to swear by the “4% Rule”—the idea you could safely withdraw 4% of your nest egg each year. But now, as he nears retirement at 61, his planner says that rule is too risky in today’s world of lower expected returns and higher inflation. Instead, he’s using a “guardrails” approach. He’ll start by withdrawing 3.5%. If the market has a great year, he might adjust his withdrawal up to 4.5%. If the market crashes, he’ll pull back to 3%. It’s a more dynamic and realistic strategy for making his money last.
How to Create a “Pension” for Yourself When You Don’t Have One
The Income Machine My Aunt Built
My aunt never had a pension, so at 55 she decided to build her own. She took a portion of her retirement savings—about $500,000—and bought a portfolio of blue-chip, dividend-paying stocks and bonds. Her goal wasn’t for the portfolio to grow wildly, but for it to generate a steady, predictable stream of income from the dividends and interest. It now pays her about $20,000 a year, just like a small pension. This “income machine” covers her basic expenses, giving her the peace of mind a guaranteed paycheck provides.
The Emotional Rollercoaster of Leaving a 30-Year Career
The Identity Crisis My Dad Had After His Retirement Party
My dad’s retirement party was amazing. Everyone celebrated his 30-year career. But the Monday after, I found him sitting alone, looking lost. He told me, “For 30 years, I was ‘Dave the Engineer.’ I knew what to do every day. Who am I now?” He had spent decades planning his finances but zero time planning for the loss of identity, structure, and social connection that came with his job. Watching him struggle taught me that a good retirement plan isn’t just about money; it’s about figuring out what you’re retiring to, not just what you’re retiring from.
I Did a “Fear-Setting” Exercise for Retirement. Here’s What I Learned.
The “Pre-Mortem” My Manager Ran on Her Retirement
My manager, who is 59, did a “fear-setting” exercise before she submitted her resignation. She made a list of all her worst fears about retirement: running out of money, getting sick, being bored and lonely. Then, for each fear, she wrote down specific things she could do to prevent it or to repair the damage if it happened. She said defining her fears made them feel manageable instead of terrifying. It turned a vague cloud of anxiety into a concrete list of problems she could solve. It was a pre-mortem for her future.
Long-Term Care Insurance: Is It a Scam or a Necessity? A Real Story.
The Insurance Policy That Saved My Grandfather’s Legacy
My grandfather bought a long-term care insurance policy when he was 60. My dad thought it was a waste of money. But at 82, my grandpa needed full-time nursing home care, which cost a staggering $9,000 a month. The insurance policy covered most of it. Without it, his entire life savings would have been wiped out in two years, leaving nothing for my grandmother. My dad now says that policy was the single best financial decision his father ever made. It didn’t just protect his health; it protected his family’s financial future.
The Pre-Retirement Checklist: 25 Things You Absolutely Must Do
The Giant Whiteboard in My Boss’s Office
In the year leading up to her retirement, my boss kept a giant whiteboard in her office with a 25-item checklist. It had everything from “Review Social Security options” and “Understand Medicare plans” to “Create a Power of Attorney” and “Consolidate old 401(k)s.” There were even non-financial things like “Find a new volunteer hobby.” She said that seeing the list every day kept her on track and turned the overwhelming process of retiring into a series of small, manageable tasks. It was the ultimate project plan for the end of her career.
How to Talk to Your Adult Kids About Your (And Their) Inheritance
The “Money Talk” My Parents Sat Me Down For
When my parents turned 60, they sat me and my sister down for a talk I was dreading. But it wasn’t awkward at all. They explained their will, where to find important documents, and who their executor was. My dad said, “We’re not telling you this because we’re sick. We’re telling you this so if something happens, you can focus on grieving, not on a scavenger hunt for paperwork.” It was an incredible gift. That one conversation removed so much future stress and uncertainty, for both them and us.
I’m Retiring Into a Bear Market. Here’s My Exact Survival Plan.
The Calm in My Neighbor’s Voice During the Crash
During the last market downturn, I saw my neighbor, who had just retired at 65. I asked if he was panicking. “Not at all,” he said. He explained his plan for this exact scenario. He had two years of living expenses saved in cash, so he doesn’t have to sell any stocks while they are down. He’s also suspending his international travel plans and delaying a kitchen renovation to reduce his spending. Because he had a specific bear market playbook ready, he felt in control instead of feeling like a victim.
The Hidden Costs of Retirement Nobody Talks About
My Aunt’s Budget-Busting Surprises
My aunt retired last year and told me about all the hidden costs that surprised her. She knew about healthcare, but she didn’t budget for the huge increase in property taxes, the cost of maintaining her home without her handy husband, or how much her travel budget would balloon now that she had unlimited free time. She also didn’t realize how much she’d spend on new hobbies just to stay busy and social. Her “fixed” retirement income suddenly felt a lot less fixed. It was a huge lesson in budgeting for the life you want to live.
“I Have a Pension.” Why That Might Be a False Sense of Security.
The Hard Math My Uncle, the Firefighter, Had to Face
My uncle was a firefighter for 30 years and always bragged about his “bulletproof” pension. He planned to retire at 55 and didn’t save a dime outside of it. But when he got his final pension estimate, the reality hit. After taxes and accounting for the fact that it doesn’t increase with inflation, the amount was barely enough to cover his basic bills. He’s now 57 and works part-time at a hardware store to supplement his income. His story taught me that even a great pension might not be enough. You have to build your own savings.
How I Fought “One More Year” Syndrome and Finally Retired
The Question That Finally Convinced My Mentor to Quit
My mentor had reached her financial independence number at 58, but she kept working. She was afraid to leave, always saying “just one more year” would make her feel safer. This went on for three years. Finally, a friend asked her, “You’ve spent your whole life saving money to buy back your time. Now that you can afford it, why won’t you let yourself have it?” That question hit her hard. She realized she was trading her healthy, active years for a number on a spreadsheet that was already big enough. She retired a month later.
The Pros and Cons of an Annuity: A Real-Life Case Study
The Annuity That Split My Grandparents’ Finances
When my grandfather retired, he used a large chunk of his savings to buy an annuity, which gives him a guaranteed check every month. He loves the security. My grandmother, however, hates it. She points out that the fees were high, the money is locked up so they can’t access it for a big emergency, and when my grandfather passes away, the payments stop completely, leaving her with nothing from that investment. Their experience showed me that annuities aren’t good or bad; they are a tool with very specific trade-offs: predictable income in exchange for flexibility and growth.
What to Do With Your 401(k) When You Leave Your Job for the Last Time
The Choice My Dad Made With His Life’s Work
When my dad retired, he had a big decision to make about his $1.5 million 401(k). He could leave it with his old company, but he didn’t like their limited investment options and high fees. He could cash it out, but that would trigger a massive tax bill. Instead, he chose to do a direct rollover into an IRA. This gave him unlimited investment choices, lower fees, and more control over his withdrawals. Most importantly, it moved his life’s savings from his former employer’s control into his own, which he said was a huge psychological relief.
The Psychological Shift from “Saver” to “Spender” in Retirement
The Hardest Thing My Thrifty Grandma Had to Learn
My grandma was a lifelong super-saver. She clipped coupons, drove old cars, and prided herself on her frugality. This was great for building her nest egg. But when she retired at 65, she couldn’t flip the switch. She had a million dollars in the bank but felt intense guilt spending $20 on lunch with friends. It took her years to get comfortable with the idea that it was okay to spend the money she had worked so hard to save. It taught me that the mindset that makes you a great saver can make you a miserable retiree if you can’t learn to enjoy it.
How My Spouse’s Retirement Plans Differ From Mine (And How We’re Compromising)
The “His and Hers” Retirement My Neighbors Are Planning
My neighbors are both turning 60, and their retirement dreams are completely different. He wants to sell their house, buy an RV, and travel the country. She wants to stay put, be close to her grandkids, and tend her garden. For a while, it caused a lot of tension. Their compromise? They’re keeping the house as a home base, but they bought a smaller, used RV. For three months a year, they travel. The other nine, she gets her home and garden. It’s a great lesson in how retirement planning as a couple requires just as much communication and compromise as marriage itself.
I Downsized My Life, Not Just My House
The “Subtraction” Project My Aunt Undertook at 60
When my aunt retired at 60, she sold her big family house and bought a condo. But she told me that was the easy part. The real work was downsizing her life. She got rid of boxes of sentimental clutter, resigned from stressful board positions, and ended draining friendships. She unsubscribed from dozens of mailing lists and simplified her finances down to just a few accounts. She said the goal of her retirement wasn’t just to stop working, but to subtract everything that didn’t bring her joy, leaving her with more time, energy, and peace.
The Strategic Medicare Decisions You Need to Make at 64
The Overwhelming Mail Pile on My Parents’ Table
The year my parents turned 64, their mailbox was flooded with a mountain of complicated marketing materials for Medicare. They had to choose between Original Medicare with a supplemental plan or a bundled Medicare Advantage plan. Each had different networks, costs, and drug coverages. It was a dizzying and irreversible decision. They spent weeks researching and building spreadsheets to compare plans. Watching them stressed me out, but it taught me that signing up for Medicare isn’t automatic. It’s one of the most complex and important financial decisions you make before retirement.
How Inflation Became the Biggest Threat to My Retirement Plan
The Grocery Bill That Terrified My Retired Neighbor
My neighbor retired five years ago on what he thought was a comfortable fixed income. But last year, he told me that inflation had become his biggest fear. “My income stays the same,” he said, “but my grocery bill is up 20%, my gas is up 30%, and my property taxes went up 10%.” That slow, steady erosion of his purchasing power was a far greater threat to his lifestyle than a stock market crash. His situation was a stark reminder that a good retirement plan doesn’t just need to beat market risk; it needs to outrun inflation for 30 years.
Building a “Bond Tent” to Protect Your Portfolio: A Simple Guide
The “Safety Net” My Dad’s Advisor Built Around His Retirement Date
As my dad approached retirement, his advisor said they were building a “bond tent.” I had no idea what that meant. He explained that in the five years before and after retirement, they were increasing his allocation to safer investments like bonds. This creates a “tent” of stability over his most vulnerable years. If the market crashes, he can live off the bonds instead of selling stocks at a loss. As he gets further into retirement, they will slowly reduce the bonds and add back more stocks. It’s a smart way to protect against sequence of returns risk.
My Last Day at Work: An Emotional and Financial Diary
The Exit Interview I Did with My Retiring Boss
On my boss’s last day after 35 years with the company, I asked her how she felt. Financially, she said she was secure and ready. She’d run the numbers a hundred times. But emotionally, she was a wreck. She was excited for the freedom but also grieving the loss of her work friendships, her daily routine, and the sense of purpose her job gave her. “It feels like a breakup and a graduation day all at once,” she said. It made me realize that retiring is an emotional journey just as much as a financial one.
The “Bucket Strategy” Explained: How I’m Segmenting My Retirement Funds
My Uncle’s Three Buckets for a Good Night’s Sleep
My uncle, who is 66 and retired, never worries about the stock market because he uses a “three-bucket” strategy. Bucket one has two years of living expenses in pure cash. It’s his emergency, short-term fund. Bucket two has about ten years of expenses in stable, income-producing bonds. Bucket three has all the rest of his money in growth-oriented stocks for the long term. He says this system lets him sleep at night. No matter what the stock market does, he knows his next decade of income is safe and sound.
What I Learned from Interviewing 20 Happy Retirees
My Professor’s Advice for a Happy Retirement
In a college class, my professor assigned us a project: interview someone who is happily retired. I spoke to my 70-year-old neighbor. He told me the happiest retirees he knows have three things in common, none of which are a specific net worth. They have a strong social circle, a hobby or purpose that gets them out of bed in the morning, and their health. He said, “Money can buy you a comfortable retirement, but it can’t buy you a happy one. You have to build that yourself, starting long before you quit your job.”
The Part-Time “Bridge Job” That’s Making My Retirement Stress-Free
Why My Retired Dad Works at a Golf Course
My dad retired from his stressful accounting job at 62. Now he works 15 hours a week at a golf course. He doesn’t need the money, but he calls it his “bridge job.” The small paycheck covers all their “fun” expenses—travel, dinners out, and gifts for grandkids. This allows them to leave their main retirement portfolio untouched, letting it grow for a few extra years. Plus, he gets free golf. It’s the perfect, low-stress way to ease into full retirement while reducing the financial strain on his nest egg.
Why My Emergency Fund is Now Bigger Than Ever
The “Go-To-Hell” Fund My Mentor is Building
My mentor is 58 and getting ready to retire. I was surprised when she told me her top priority was increasing her cash emergency fund to an amount equal to two years of living expenses. I asked why, since her income would be more stable. She called it her “Go-To-Hell Fund.” It gives her the power to say “go to hell” to a bad stock market, allowing her to live off cash for two years instead of selling stocks at a loss. It’s her ultimate insurance policy against the sequence of returns risk.
Consolidating Old 401(k)s: The Clean-Up Job I Wish I’d Done Sooner
The Financial “Junk Drawer” My Mom Finally Cleaned Out
For 30 years, my mom left a trail of old 401(k)s at every job she left. By the time she was 59, she had four different accounts with different fees and investments. It was a nightmare to track. Before retiring, she spent a month consolidating them all into a single Rollover IRA. She said it was the best thing she ever did. It simplified her life, lowered her fees, and gave her a clear picture of her finances for the first time. Her hassle convinced me to roll over my old 401(k)s immediately.
The Shocking Truth About How Much You’ll Spend on Healthcare After 65
The Number That Blew Up My Parents’ Retirement Budget
My parents meticulously planned their retirement budget. They thought they had it all figured out. Then they saw the official estimate: a healthy 65-year-old couple retiring today can expect to spend over $300,000 on healthcare costs throughout retirement, and that’s after paying for Medicare premiums. That number completely blindsided them and forced them to re-evaluate their entire plan. It was a shocking lesson for me. Healthcare isn’t just a small line item in retirement; it’s one of your biggest single expenses, and you have to plan for it.
How to Calculate Your “Personal” Rate of Inflation
The Spreadsheet My Grandpa Keeps
My grandpa is 80 and says the government’s inflation number is meaningless to him. He tracks his “personal” rate of inflation. Because he spends a much larger portion of his income on healthcare and property taxes—two areas where costs have soared—his actual inflation rate is much higher than the national average. He adjusts his budget based on his own spending, not a generic number. It’s a brilliant reminder that the only inflation that matters is the one that affects your specific lifestyle, and you have to plan for your own reality.
I’m Retiring Single. Here Are My Unique Challenges and Strategies.
The Solo Retirement Plan of My Favorite Aunt
My aunt, who is 62 and single, is planning her retirement, and her challenges are unique. She has to save more because she only has one Social Security benefit and one 401(k). Her biggest fear isn’t money, though; it’s isolation. She’s proactively building a strong social network and has a plan for who will be her power of attorney if she gets sick. She told me, “When you’re single, you have to be your own partner in retirement planning. You have to be the planner, the backup, and the safety net, all in one.”
The Tax “Time Bomb” Hiding in Your Traditional 401(k)
The Tax Bill That Shocked My Uncle
My uncle retired with a million dollars in his traditional 401(k) and felt rich. He didn’t realize that every dollar he withdrew would be taxed as ordinary income. He calls it his “tax time bomb.” He thought he had a million dollars, but in reality, he shares it with the IRS, and after taxes, his nest egg is worth significantly less. His painful surprise convinced me to put as much money as possible into my Roth 401(k) and Roth IRA now. Paying the taxes today, in a lower bracket, is a gift to my future self.
The Non-Financial Side of Retirement: Finding Purpose and Community
The Two Retirees on My Street
I have two retired neighbors on my street. Both are financially comfortable. Mr. Smith, 68, quit his job and now spends all day watching TV. He seems miserable. Mrs. Jones, 72, also quit her job but is rarely home. She volunteers at the library, takes painting classes, and organizes a neighborhood walking group. She is vibrant and happy. Their example is a powerful lesson. A big bank account can fund your retirement, but it can’t give it meaning. Purpose and community are assets you have to build yourself.
How to “Gift” Money to Your Kids Without Hurting Your Own Future
The “Living Inheritance” My Grandparents Gave Us
Instead of leaving a large inheritance, my grandparents, who are in their late 70s, decided to give “living inheritances.” They helped pay for a portion of my cousin’s down payment and my college tuition. They used the annual gift tax exclusion to do this without any tax implications. My grandmother said, “Why should we wait until we’re gone to see our money make a difference in your lives?” It’s a smart way for them to help family while ensuring they don’t give away money they might need for their own future care.
The “Guardrails” Approach to Retirement Spending
The Driving Analogy My Dad Uses for His Withdrawals
My dad, who just retired, uses a “guardrails” approach for spending. He told me to think of his 4% withdrawal rate as the center lane on a highway. If the market has a great year and his portfolio grows significantly, he allows himself to drift into the “fast lane” and spend a bit more, maybe 5%. If the market crashes, he hits the guardrail and immediately pulls back into the “slow lane,” reducing his spending to 3% until things recover. This flexible system helps him adapt to market conditions and ensures he never drives off a cliff.
I’m Delaying Retirement by 2 Years. The Financial Impact is Staggering.
The Power of “Two More Years”
My boss was planning to retire at 63, but decided to work two more years. He showed me the staggering financial impact. First, it’s two more years of saving his maximum 401(k) contribution. Second, it’s two fewer years of withdrawing money, allowing his entire portfolio to keep growing. Third, it increases his Social Security benefit permanently. He calculated that those two extra years of work would increase his secure income for the rest of his life by nearly 25%. It was the most powerful lesson in the math of delayed gratification I’ve ever seen.
Is a Reverse Mortgage Ever a Good Idea? The Unbiased Truth.
The Tale of Two Neighbors and Their Houses
I watched two of my elderly neighbors grapple with being house-rich and cash-poor. One took out a reverse mortgage. It gave her the cash flow she needed to stay in her home, but the high fees and compounding interest ate up almost all her equity. When she passed away, her kids had to sell the house just to pay back the loan. The other neighbor sold her house, downsized to a condo, and invested the profit. She has less stress and will leave a real inheritance. It showed me a reverse mortgage can be a last resort, but rarely the best one.
How to Stress-Test Your Retirement Plan Against a Market Crash
The “Financial Hurricane” Simulation My Dad Ran
Before my dad retired, he had his financial planner run a “financial hurricane” simulation. They took his exact portfolio and retirement plan and stress-tested it against historical market crashes, like the 2008 financial crisis and the 2000 dot-com bust. They wanted to see if his plan would have survived. The simulation showed he needed a slightly larger cash buffer to weather a severe downturn in the first few years. Running that test gave him the confidence to know his plan wasn’t just a guess; it was battle-tested.
The Legal Paperwork I Finalized a Year Before Retiring
My Mom’s “In Case I Get Hit By a Bus” Folder
In the year before my mom retired, she created what she called her “In Case I Get Hit By a Bus” folder. It contained updated copies of her will, a living will (healthcare directive), and her durable power of attorney for finances. She also included a master list of all accounts, passwords, and contacts. She walked my dad and me through the entire folder. She said organizing her legal and financial life was the last major project of her career and the greatest gift she could give to her family.
Why I’m Keeping a Small Amount of Stock in Retirement
My Grandpa’s Secret to Beating Inflation
My grandpa is 85 and still keeps about 30% of his portfolio in stocks. My dad asked him why he takes the risk. My grandpa laughed and said, “The biggest risk isn’t the market crashing; it’s me living to be 95! I need my money to grow for another decade just to keep up with the rising cost of prescriptions and groceries. Bonds and cash give me safety for today, but stocks are what will pay my bills when I’m 90.” It was a powerful lesson that your investment horizon doesn’t end on the day you retire.
The Surprising Social Security Rules You Need to Know
The Social Security Secret That Netted My Aunt an Extra $50,000
My aunt got divorced at 55 after a 15-year marriage. She was worried about her retirement until she learned a surprising Social Security rule. Because her marriage lasted more than 10 years and she didn’t remarry, she was entitled to claim a spousal benefit based on her ex-husband’s higher earnings record. This benefit was significantly more than she would have gotten on her own. This obscure rule ended up being worth over $50,000 to her over her lifetime. It taught me that it pays, literally, to understand all the detailed rules.
“Am I Ready?” The Final Gut-Check Before Giving Your Notice
The Three Questions My Boss Asked Herself Before Retiring
My boss had her resignation letter written for six months before she could bring herself to submit it. She said before she could, she had to answer “yes” to three final gut-check questions. One: Is my financial plan solid enough to withstand a market crash? Two: Do I have a clear plan for how I will spend my time and find my purpose? Three: Am I running to a new life I’m excited about, or just running from a job I’m tired of? Answering those three questions gave her the clarity and confidence to finally make the leap.