ORIENTATION
Sometimes I feel as though I must be a naturally lazy person to enjoy being retired as much as I do. Then I remind myself of the half century of continuous professional work I put in, often being involved in several different areas of endeavor at the same time. Early on I worked many hours, sixty or seventy each week. My wife sometimes kept my daughter up past midnight when she was still a toddler so I could have time to play with her. My wife feared that otherwise my daughter would not truly know her father. I feel that she was such a great mother, she more than made up for any deficiency on my part. My daughter says that we both were great parents and that’s all that really matters.
I often wonder if the milieu I grew up in had something to do with how easily I have gone from a busy work schedule to retirement. I grew up poor, the son of immigrant parents. We lived in what is now called the Bedford-Stuyvesant section of Brooklyn, New York, in a transitional period for that neighborhood. I had many bright friends, who at a young age discussed worldly matters in quite an adult fashion. Today young people choose professional athletes or movie stars as their idols. We most envied the European nobility who didn’t have to work, living in luxury without monetary worries. Listening to our parents complain about hardships of the working poor—long hours and low wages—obviously had an impact.
Being indoctrinated, at a young age, into a culture of living frugally because of need, orientation or desire during the Great Depression and fearing the next economic downturn had a great influence on the decisions I have made in steering a conservative course in my life. It is reasonable to deduce that I have been guided unconsciously to emulate the lifestyle of the idle nobility I romanticized as a child.
SECURITY
It can be frightening to voluntarily walk away from a good job that is challenging and entertaining to begin an uncertain, relatively idle future. However, it is not as devastating as having to acutely adjust to an unemployed state due to corporate downsizing or an unforeseen bankruptcy. In either case, proper preparation can mitigate the trauma.
Longtime employment in one location can create a sense of security, belonging and trust. When this trust is broken, the harsh realization that each individual employee is ultimately on his or her own leads to the detriment of the sense of security. It is therefore important that each worker, whether low-level employee, self-employed, middle management or executive, understands that the comfort of their future and the comfort of their family is their sole responsibility. From the first day of eligibility, the worker should become knowledgeable about the pension benefits due him or her. Like the security all federal government workers have in knowing that a pension awaits them when they retire, all non-government workers should keep informed about the safety and availability of the benefits they can count on after they retire and the dollar amount they are due. If a union is involved, a representative should be sought out for clarification of the details. Many workers have chosen lower-paying positions with better benefits over higher-paying jobs with lesser benefits.
Even in more secure situations, where there are adequate funds available, the uncertainty of market fluctuations, with severe downturns an ever-present danger, the decision to give up earning and to depend solely on investments can be a difficult one to make.
HEALTH
The state of one’s health is always a factor in determining if and when one should retire. Robust individuals, constantly reassured by comforting medical check-ups, often assume they are just as hardy as they were years before and feel they can take on a workload equal to or even beyond the capabilities of younger, less experienced competitors. Sometimes this is foolish and leads to dire consequences, but on many occasions this proves to be a true assessment of one’s vitality and ability. No one who can fully carry out his duties, loves what he does, is good at it and gains satisfaction in the adequate completion of the tasks laid before him should consider voluntarily retiring unless forced to do so by factors not under his control. One of those important factors is failing health.
Ranking among the most common medical problems interfering with productivity, cardiac disease can be, in its most severe form, life threatening. The initial symptoms, such as anginal chest pain, should always be regarded as a wake-up call to let a person know it is time to slow down, reduce working responsibilities, or even consider quitting work altogether if possible. In many cases the condition may remain a minor one and no major changes would then be necessary; however, constant vigilance should be exercised to detect a worsening of symptoms and the need for further stress reduction. With the latest cardiac surgical procedures, such as bypass and stent emplacement, many workers may return to a reasonable facsimile of their previous schedule after a short recovery period. Those who cannot should be considered to be candidates for retirement.
Although patients with longstanding, especially terminal, illness are usually dismissed from work on medical leave, some self-employed individuals may find distraction from the unpleasantness of their affliction and side effects from therapy by continuing to perform whatever duties of their cherished occupation they still can. The rest should be afforded a well-deserved retirement.
STATUS AND RESPONSIBILITY
I have known people who wanted to retire, could afford to retire, but due to their status or responsibility could not. One, a successful businessman, could not find a suitable buyer for the company he started and since he was not expendable, due to a unique artistic talent he possessed, he could not find a replacement for himself. Not wishing to dissolve his company and feeling responsible for the welfare of his employees, he continued to go to work each day until he died. He wanted very much to retire to a carefree life, but morally he could not live with the knowledge that he would put two hundred people out of work.
In some families, after the children have been raised, educated and have left home to live separate lives, the burden of caring for older parents falls on the “in-between” generation, often interfering with retirement plans. Even if they don’t live in the same house, although that would be an obvious diversion, the need to be close by and on call for any of a myriad of geriatric emergencies would interfere with any desire to relocate. If the parent or parents are financially dependent, the cost burden might be just enough to derail any retirement plans until the death of all those dependents.
LIFESTYLE
The very affluent do not have to be concerned with downsizing after retirement, but the majority of retirees may find that they do have to curtail their lifestyles in relation to the success or failure of their financial planning. Hopefully those who adhere to the formulas outlined in this book and start at a young enough age will avoid the need to cut back on their reasonable expectations. Most projections of the financial needs of retired families anticipate that most, if not all, liabilities, such as mortgages and other loans have been satisfied. Retiring with large debts not covered by substantial assets is not advised.
The question must be asked if a family could be comfortable giving up some of the everyday luxuries they have become accustomed to and still function acceptably. Which ones? How much has to be sliced from the family budget? How should spending be curtailed? Should shopping sprees be eliminated? Should we move to a smaller home or buy a less expensive car?
To some individuals the status of being able to spend freely and accumulate “stuff” is very important in
