The 5 Most Important Decisions You Will Make In Retirement

The 5 Most Important Decision You Will Make In Retirement – Welcome to the Webinar (0:00)

Alex Call: My name is Alex Call. I’m a Certified Financial Planner™ here at Peterson Wealth Advisors, and I’m really excited to talk about what I believe are five of the most important decisions you’ll be making during retirement.

Before we dive in, I have a few quick housekeeping items. If you have any questions during the presentation, feel free to use the Zoom Q&A feature located at the bottom of your screen. My colleague, Zach Swenson, will be fielding these questions. Zach is another advisor at the firm, and he’ll respond to your questions as best he can.

At the end of the webinar, I’ll take some time to answer a few general questions. However, if you have more personalized questions, please don’t hesitate to reach out. We’re happy to hop on the phone, schedule a consultation, or just talk through your specific concerns. We’re here to help.

Finally, at the end of the webinar, a survey will be sent out. I would greatly appreciate any feedback or suggestions you have for future topics. Your input is incredibly valuable as it helps us improve and better address your needs.

Before jumping in, a quick disclaimer: The information provided in this webinar is not intended to constitute legal, investment, or tax advice. All information, content, and materials shared are for general informational purposes only. With that said, let’s go ahead and get started.

In the early 2000’s, Netflix approached Blockbuster with a proposal to sell Netflix for $50 million. As many of you know, Blockbuster was the giant in video rentals at the time, and they declined the offer. Netflix co-founder Marc Randolph mentioned that Blockbuster executives laughed them out of the room. Fast forward to today, Netflix is worth upwards of $300 billion, while Blockbuster has become an infamous case study, with its stores virtually extinct.

Another story from 1955 involves Morris Chang, a recent college graduate who was offered two different jobs—one at Ford for a salary of $479 a month and another at Sylvania Electric for $480 a month. Ford seemed like the better opportunity, so Chang asked if they could match Sylvania’s offer, which was just $1 more per month. Ford declined, so Chang took the job at Sylvania, where he learned about and became an expert in the growing field of transistors and microchips. Chang eventually founded Taiwan Semiconductor Manufacturing Company (TSMC), which today is worth upwards of $800 billion—15 times the value of Ford—and produces 60% of the world’s microchips.

The common theme in these stories is that seemingly small decisions can lead to massive consequences. I’m sure you can reflect on your own life and recall small decisions you’ve made that have had significant impacts. It could be the job you did or didn’t take, the move you made, or even deciding to go on that fifth blind date of the month, which led you to your now-spouse. There are countless other examples, I’m sure, that come to mind as you reflect.

Today, I want to discuss the five most important financial decisions made in retirement. Mistakes made during your working years, although painful, can usually be mitigated. In other words, you have time and income to make adjustments. However, mistakes made at or during retirement can be very unforgiving—they will impact you for the rest of your life. While we won’t be able to cover every decision you need to make today, I want to highlight what I believe are the top five, and they’re not listed in any specific order.

#1 Choosing Trustworthy Advice and Resources (4:36)

The first is choosing trustworthy advice and resources. Investing and saving during your working years is very different from investing and spending your savings during retirement. These are two different skill sets. The financial advice you follow during retirement can significantly impact your financial well-being.

So, where do we get advice from? I break it down into two categories: financial advisors and financial media. For some, financial advice may come from a professional advisor; for others, it might be a trusted contact. Financial media, on the other hand, has changed dramatically over the past 5 to 10 years. There’s now an overload of information from new types of media like podcasts, blogs, YouTube, and social media, in addition to traditional sources like magazines, TV, newspapers, and books.

How should we determine who or what to listen to? When it comes to financial advisors, I believe they should possess three key traits before you discuss your situation with them.

The first trait is integrity. There are many highly trustworthy financial advisors, but unfortunately, like in any industry, there are some bad actors. Early in my career, I had a colleague who was solely focused on earning a commission from selling a product—the client was an afterthought. Although he was well-respected in his community, he always put his personal financial interests ahead of his clients.

It’s important to find someone who is not only legally obligated but also has the integrity to put your interests ahead of their own financial interests.

The next trait to look for is competence. You want to find someone who specializes in what you need. Similar to going to a doctor—if you need a knee replacement, you’re not going to see a dermatologist. If you’re planning for retirement, you need to work with someone who specializes in retirement, not someone who primarily works with young tech executives or business owners.

The third trait is experience. Turnover is very high in the financial services industry. I’ve spoken with dozens of people who, at one point or another, wanted to help a friend’s son, a niece or nephew, or a youth they used to lead in their church. These people had just entered the industry, and while well-intentioned, they sold an annuity or life insurance policy. Fast forward five years, and the client is stuck in that product, but the person who sold it to them is now out of the industry.

So, how do you determine if a financial advisor possesses these three characteristics?

First, ask for referrals. Find someone you trust and ask them for recommendations. This could be an accountant, an attorney you already work with, or a good friend who is approaching or already in retirement. Ask them who they recommend and what they’re doing.

Next, use reputable organizations. You can visit the CFP (Certified Financial Planner) or NAIFA (National Association of Insurance and Financial Advisors) websites and use their advisor search tools. These advisors have been vetted and have promised to put their clients’ interests ahead of their own.

Additionally, when you’re looking to hire a financial advisor, ask questions. You can do a quick Google search to find numerous questions to ask. The CFP Board and the SEC also provide lists of questions that can guide you in your search. Here are five key questions I recommend asking when you’re interviewing and looking to hire a financial advisor:

1. Tell me about your qualifications, education, and background. You want to listen for experiences and skills that demonstrate they can help you create an income plan for retirement. Be cautious of someone who is new to the industry, works part-time, or doesn’t specialize in working with retirees.
2. Describe your ideal client. Ideally, they should describe someone who is in a similar situation to yours—someone approaching or currently retired, with the same challenges and goals that you have. It shouldn’t be, as mentioned earlier, a tech executive or business owner.
3. How are you compensated, and what services are included? You need to know if they are paid by a fee from you, if they receive commissions from selling you a product, or if they get kickbacks for placing you in one investment over another. Once you understand how they are compensated, you’ll want to know exactly what services they provide and what you’re getting for that fee.
4. Explain the process of developing an income plan. Ask them where your money will be coming from and how it will be managed. Are they truly going to get to know you, your situation, and your retirement goals? Or are they more focused on churning and burning, making a quick buck, and moving on to the next client?
5. How often will we meet, and how quickly do you respond to inquiries? You want to understand what the client experience will be like and how it will feel to work with this individual. How accessible will they be? If you’re working with an advisor, they should respond to you no later than one business day. They need to be available when you have questions.

Besides financial advisors, you’ll also find financial advice through the media. Here’s a funny example of how financial media can sensationalize everyday events: Imagine a comic where, on a plane, the pilot says, “We’re going to experience a little turbulence, please fasten your seat belts.” One passenger panics, saying, “We’re going to die!” while the calm lady next to him remarks, “He’s a financial reporter.”

Another way to think about financial news is through a quote I like: “Do you know what investing for the long run while listening to market news every day is like? It’s like a man walking up a big hill with a yo-yo, keeping his eyes fixed on the yo-yo instead of the hill.”

When reading financial news, consider asking yourself, “Will I care about this in 1, 5, or 10 years?” The ultimate goal of information for retirees should be to help you make decisions between now and when retirement ends. You’ll quickly see that most financial news does not meet this goal.

Here’s a chart that illustrates this concept. Consider categorizing everything that catches your attention based on its relevance. I believe there’s a spectrum of news and information that looks something like this:

First, there’s clickbait and rumors. These are very common and mostly just noise. Examples include headlines like, “Is your 401(k) about to be wiped out? Find out what you need to do now!” or “The secret to becoming a millionaire in six months.”

Top Wall Street executives or experts reveal all—this type of news can be very time-consuming, and it is also harmful to your finances, often getting you emotionally charged to do something you probably shouldn’t do.

The next type of news is smart but not relevant. A perspective can be highly relevant to one person and completely irrelevant to another if they have different time horizons or goals. You should ask yourself whether the advice is directed at a day trader or a long-term investor. I recommend asking yourself if you are the intended audience for the advice being given.

The most important, but also the rarest, type of financial news is that which requires immediate action. The reason this is so rare is that actionable takeaways are scarce—financial media doesn’t know your goals or have any context for your life. Therefore, it’s very uncommon to find news that demands immediate action.

I believe that good financial media generally pushes you in the right direction, but it rarely provides any immediate, actionable takeaways.

To summarize, while you’re consuming financial media, be aware that there’s a lot of clickbait and rumors you can and should ignore. There are many smart financial journalists and bloggers with valuable information to share, but their content may not be relevant to you. Then, there are those few pieces of advice that do require immediate action. For most news, you should have little tolerance, and asking yourself where it fits on this spectrum before diving in is vital—it gives you permission to move on quickly to find something more relevant.

Who you listen to will help you make the next few decisions, which I feel are framed by two competing goals that all retirees have.

These goals are: first, having a comfortable standard of living throughout retirement, which usually means maintaining your current standard of living, and second, not running out of money. Too often, I see people overcompensating one way or the other. So, how do you reconcile these two competing goals?

#2 Choosing to have an Income Plan (15:58)

I would say that the answer lies in choosing to have an income plan. Without an income plan, how will you know how much money you can spend during retirement?

When it comes to spending, there is a spectrum with two different personality types on each end: the spenders and the savers. Spenders have the attitude of, “I’ve been saving my whole life for retirement. Now that I’m retired, I’m finally going to spend whatever I want.” They feel wealthy because they have more money than ever before and feel entitled because they’ve scrimped and saved for decades. However, they risk depleting their savings in the first decade of a three-decade retirement.

On the opposite end are the savers. They are afraid of spending any of their retirement funds. They know this money needs to last their entire lives, and they’re cautious because of their frugality. Savers became wealthy through sacrifice and dedication, often penny-pinching during their working years. In retirement, they struggle to change their frugal habits, living well below their means and denying themselves simple pleasures, like visiting their grandchildren or picking up the tab when dining out with them.

Both types can ruin their retirement—spenders by spending too much too early and savers by living well below their potential. Regardless of where you fall on the spectrum, having an income plan will help you find the right balance. For spenders, it will rein in their spending, and for savers, it will give them permission to spend.

Now, the purpose of this presentation is not to create an income plan. If you’re interested in that and haven’t received Scott’s book, Plan on Living, we’re more than happy to send it to you or provide a presentation dedicated to creating an income plan. But today, I want to talk about what an income plan is versus what it is not.

So, what is an income plan?

First and foremost, it’s a set of guardrails on spending. It establishes guidelines on how much to spend to ensure long-term financial security.

Next, an income plan needs to be customizable and flexible. It is tailored to you and your family’s individual needs and circumstances, including lifestyle and personal financial goals. Additionally, it should be flexible enough to adapt when life happens, allowing you to make necessary changes.

An income plan is also a comprehensive investment strategy. It includes a diversified investment approach to balance growth and risk, ensuring sustainable income throughout your retirement. Ultimately, it matches your investments with your income needs.

Moreover, it should include all sources of income, such as Social Security, pensions, investments, rental income, and anything else. The goal is never to maximize any single source of income but to maximize your overall retirement income.

Lastly, it needs to be focused on longevity. The plan aims to ensure that your retirement savings last for your entire retirement period, taking into account your life expectancy and inflation.

Now, what is an income plan not?

It is not a product. It’s not a life insurance product or an annuity. It is a comprehensive strategy involving multiple components.

It is not just about investments. While investments are a part of any income plan, the plan is not solely focused on investment strategies. It encompasses budgeting, tax planning, and withdrawal strategies as well.

It’s also not a guarantee of high returns. If something sounds too good to be true, it likely is. Be cautious of anyone promising higher-than-average returns.

Additionally, an income plan is not a guarantee against all risks. It does not eliminate financial risks such as market volatility or unexpected large expenses, but it helps mitigate them through careful planning.

An income plan is also not a “set it and forget it” solution. It is not unchangeable; it requires regular updates and reviews. Whether you’re working with an advisor or managing it yourself, you should review your plan multiple times a year.

Before jumping into the next decision, one last thought on the importance of having an income plan:

For new retirees, this often represents access to the largest sum of money they will ever have. This can create a sense of wealth that may lead to giving more than you can afford. Beware that no matter how worthy the cause, it’s important to consider your financial limits. Ultimately, your income plan functions like your salary. If you take a large sum from your investments, you will need to lower your income moving forward. Be wise and remember that this money needs to last a very long time.

#3 Choosing When to Retire (21:10)

This leads into the next decision you have to make: choosing when to retire. This decision will have the biggest impact on your income plan, aside from how much money you’ve saved throughout your working career.

When it comes to choosing when to retire, there are financial and non-financial considerations. The two biggest financial considerations, in my opinion, are Social Security and compounding growth.

It’s almost obvious that the earlier you retire, the less money you will have compared to if you retire later. But let’s look at just how much of a difference this actually makes.

For Social Security, at age 67, you are entitled to receive 100% of your benefit. If you claim your benefits earlier, you will receive 6% less per year. For example, if you claim your benefits at age 62, you’ll receive 70% of your Social Security benefit. Conversely, every year you delay claiming beyond age 67, you receive an 8% increase per year, with the latest you can claim being age 70.

So, if you claim your benefits at age 62, you’ll receive only 70% of your full benefit. However, if you wait until age 70, you’ll receive 124% of your benefit.

Now let’s look at compounding growth. This chart shows what it would look like if you invested $10,000 a year for 30 years and achieved a 7% rate of return. Your total balance would end up being just over a million dollars.

If you examine the first five years of that 30-year period, your account balance would grow from zero to $60,000, with your investments accounting for $10,000 of that growth.

However, if you look at the last five years, from years 25 to 30, your account would grow from $750,000 to a million dollars, with $200,000 of that growth coming from your investments.

You can see that leaving your money invested for an extra five years could give you an additional $250,000.

Let’s consider an example: Suppose someone wants to retire at age 62. Between them and their spouse, their Social Security benefit at age 62 would be $3,500 a month, and their portfolio is valued at one million dollars.

Now, consider the same person who waits an extra five years to retire at age 67. They would receive $5,000 a month in Social Security benefits between them and their spouse, and their portfolio would have grown to $1.25 million.

When we input this into our income software, the Perennial Income Model, the person who retires at age 62 would have a monthly income of $7,400. In contrast, the person who waits until age 67 would have a monthly income of $10,000.

You can see that by waiting five years to retire, your income could increase by 20 to 30%.

While this sounds great, we know that the decision to retire is not always about the money. There are many non-financial considerations to take into account.

The first is health. If you’re in poor health or have a family history that doesn’t look favorable, you may consider retiring early.

However, remember that this isn’t just about you—it’s about your spouse too. Just because you may not plan on living long doesn’t mean your spouse won’t live a long life. I’ve had multiple conversations where the husband is so hyper-focused on his own situation—such as a family history of early deaths—that he overlooks the fact that his wife’s parents are still alive in their mid-nineties and she is very healthy, expecting to live a long time. You need to consider both situations when planning for retirement.

Another consideration could be serving a senior mission. If this is something you’re passionate about, it’s worth noting that a senior mission might actually cost you less than your day-to-day living expenses in retirement.

If that’s the case, what we’ve seen many people do is retire early, take less income, and allow their investments to continue growing while they’re on their mission. They may also choose to delay taking Social Security until they return from their mission. If you’re interested in this, we have a six-part series that we can send to you, which covers the financial considerations of serving a senior mission.

The next consideration is career fulfillment. If you’re in a job you hate and can’t wait to leave, the thought of retiring five years from now might seem unbearable compared to someone who loves their job and finds a lot of fulfillment in their career. You need to balance this with the quality and standard of life you have while working versus what it would be like in retirement.

We have many clients who quit jobs they don’t like and take lower pay so they can delay claiming Social Security or allow their investments to grow further.

Finally, sometimes you don’t have a choice. You might get fired, be phased out of your job, or health issues might force you into retirement. In these situations, it may be out of your control, which is why it’s important to remain flexible.

For most of you, balancing how much time in retirement you want with how much income you need in retirement is crucial. Having an income plan and running different scenarios will greatly assist you in making that decision. If you can understand what your income would be like if you retired at 62 versus 67, it will provide you with more information to help you make a more educated decision.

When it comes to income in retirement, it’s not just about how much you’ll make, but also about how much you’ll keep.

#4 Choosing to have a Tax Plan (29:31)

The next decision will help you maximize how much you keep: choosing to have a tax plan.

Many studies indicate that taxes can be one of the largest expenses in retirement and should not be overlooked. I love the quote from Morgan Stanley: “You must pay taxes, but there’s no law that says you have to leave a tip.”

Choosing to have a tax plan will help you keep as much of your money as possible. Today, I’m going to explain what tax changes happen during retirement.

In retirement, your income sources and tax situation change. Before retirement, your income comes from W-2 wages or self-employment. After retirement, your income typically comes from withdrawals from retirement accounts, Social Security, pensions, and other sources.

A key change is that before retirement, you had to pay FICA or payroll taxes, which amount to just over 7.5% of your wages if you were a W-2 employee, and just over 15% if you were self-employed. You no longer have to pay these taxes on your retirement income.

Additionally, your deductions will likely change. You’re no longer contributing to a 401(k) or an HSA, and your mortgage may be paid off, meaning you might not be itemizing your deductions anymore. It’s more likely that you’ll take the standard deduction in retirement.

Let’s dive deeper into how you’re taxed on your investment accounts, such as IRAs and 401(k)s. You essentially have three main account types, each with distinct tax benefits:

1. Tax-Deferred Accounts (e.g., IRAs, 401(k)s): These accounts are funded with pre-tax contributions, which lower your taxable income in the year you contribute. The savings grow tax-deferred, meaning you don’t pay taxes on the gains while the money is in the account. However, when you withdraw this money, it is fully subject to income tax.
2. Tax-Free Accounts: Contributions to these accounts are made with after-tax dollars, so they don’t reduce your current taxable income. The savings grow tax-free, and withdrawals are also tax-free.
3. Taxable Accounts: These accounts involve after-tax contributions and include savings accounts, brokerage accounts, etc. You can deposit, withdraw, or sell investments at any time without penalties. However, investment income is taxed in the year it’s earned, and capital gains are taxed when investments are sold for a profit.

A quick warning: Choosing the wrong accounts or investments to withdraw from can hurt your future income. For example, taking a large lump sum from retirement accounts to pay off a mortgage can be risky. While paying off your mortgage early is a great goal, it might be smarter to withdraw the money gradually over several years. This strategy can help you avoid higher taxes and potentially save up to 20% in taxes.

This is why it’s important to know which account to take money from and when, which ties into creating a solid tax plan.

Another tax you need to be aware of in retirement is what I call the “Medicare premium tax,” or the Income-Related Monthly Adjustment Amount (IRMAA). While you are on Medicare, your premium will increase depending on your adjusted gross income.

As you can see, if you’re married and your adjusted gross income is less than $206,000, you’ll pay $175 per person in this Medicare tax.

And then that premium increases depending on how much money you are making or, more specifically, depending on your adjusted gross income, with the maximum being $675 per person for any income above $750,000.

How they determine this is based on how much you made two years ago. This means that if you’re going to enroll in Medicare at 65, they will determine how much you pay in premiums based on what you earned at age 63.

You might think this doesn’t seem fair, especially if you were working and earning more at age 63 than you are at 65 when you’re retired. If that’s the case, I recommend filling out form SSA-44. This form allows you to inform the Social Security Administration that your income has changed due to a life-changing event, such as work stoppage or work reduction, if you’re planning to retire.

Now, as you enter retirement, how are you going to pay your tax bill? You’re no longer associated with an employer who withholds taxes from your paycheck every couple of weeks. So how does this work?

The federal tax system is “pay as you go,” meaning taxes must be paid throughout the year, just like during your working career. If you pay too much throughout the year, this results in a tax refund or an overpayment. Conversely, if you pay too little, this results in a tax liability, meaning you’ll owe additional money when you file your taxes.

Tax returns are simply a return of overpaid taxes—they’re not a gift from the government. During retirement, there are two primary ways to pay your taxes throughout the year.

The first is tax withholding. Just like you withheld taxes from your paycheck as a W-2 employee, in retirement, this withholding comes from income sources like pensions, Social Security, IRAs, or 401(k)s.

For those who don’t have the option to withhold from these sources, estimated tax payments are the alternative. These are taxes paid to the IRS on a quarterly basis and are for when withholding is not an option.

Some of you might be thinking, “Why not just wait until I file my taxes to pay?” The reason is that this can lead to an underpayment penalty from the IRS. It’s important to withhold enough throughout the year to avoid these penalties.

Managing tax withholding in retirement can be challenging and requires careful tax planning to avoid over- or under-withholding.

A quick warning on the taxation of Social Security: You may see seminars that use fear tactics, suggesting that the government could tax up to 85% of your Social Security benefits. Know that this is simply not true. These tactics are often used by advisors to get you to attend the seminar, where they will then try to sell you an annuity or a life insurance policy.

The truth is that Social Security benefits are taxed based on your total income. The more money you make from other sources, the more of your Social Security benefits may be taxed. However, you’ll never pay taxes on more than 85% of your total Social Security benefits.

If you only have Social Security income, you will not be taxed on it. But most people need additional income for their lifestyle, and the key to reducing your Social Security tax is to lower your other types of taxable income.

Going into those strategies is beyond the scope of today’s webinar, but if you’d like to learn more about lowering your taxable income, please send us an email, and we’ll provide you with a presentation and resources dedicated entirely to that topic.

#5 Realizing it’s not all about the money (39:07)

Now, the final decision you need to make in retirement is realizing that it’s not all about the money. Often, when we think about retirement, we focus on financial readiness, but we don’t consider the emotional readiness required for this significant life change.

I’ve seen many times where the emotional impact of retiring is overlooked. The reason is that we tend to focus so much on Social Security, taxes, pensions, investments, and other financial matters—which are all important and necessary to focus on. But retirement is not just about having money to live; it’s about knowing how you will live your life.

For many, work provides a sense of purpose, belonging, and structure. Without work, retirement can feel empty.

We’re going to go through the five stages of retirement because we always talk about what you are retiring from, but there’s not enough discussion about what you are retiring to. What are you going to do with the rest of your life? If your decision to retire is based solely on reaching an arbitrary age or qualifying for Social Security, you may have a disappointing retirement. On the other hand, if you are retiring because there are other things you want to do or goals you want to accomplish, your retirement can be fulfilling and potentially some of the best years of your life.

Stage one is the big day: all smiles, handshakes, and farewells. This is the day filled with anticipation, excitement, and perhaps a bit of sheer terror. During this phase, many get excited about the thought of no longer having to work. You look forward to visiting your family whenever you want and achieving other ambitious goals.

After this, you then move into the second phase, which is the honeymoon. The feeling of “I’m free!” is exhilarating. During this time, you may have family or coworkers congratulate you on your retirement, throw you a party, and you finally get to experience what every other retiree talks about.

Suddenly, you have all the time in the world to sleep in, watch movies, read books, and tackle that long-neglected to-do list. I’ve seen this honeymoon period last for weeks for some people and years for others.

But just like a honeymoon after a wedding, this time will come to an end, and you’ll begin your new life as a retiree, starting to develop your new normal.

After the initial excitement of retirement, some people who may not have a purpose or something to look forward to might start feeling disappointment or frustration. That’s okay—this is a time of adjustment. Once you settle in, you might think, “So this is it? This is retirement? What now?”

During this time, you might feel like you’re supposed to be happy and excited because you’ve been thinking about retirement for many years. The challenge is that it may be difficult to reconcile how you thought you were supposed to feel with how you are actually feeling.

For married couples, a quick side note: no matter how much you love your spouse, going from them working 40 to 50 hours a week to being with you 24/7 can be an adjustment. It might be helpful to have a conversation about needing your own space, deciding who will handle which chores, how much time you’ll spend together versus pursuing individual interests, and really, what you’re both going to do with your lives.

I know that the picture here might depict the saddest person we could find—it’s not really that bad! But it’s important to understand that having a sense of purpose is what moves us on to the next phase.

I really like this quote from Theodore Roosevelt: “Far and away, the best prize that life offers is the chance to work hard at work worth doing.” What this reminds me of is that retirement is not the end of meaningful endeavors. Whether it’s part-time work, volunteering, diving into hobbies, or spending time with family, the chance to work hard at work worth doing is always available. You just need to know what you’re going to be retiring to.

This brings us to the next stage: reorientation, or building a new identity. As you move through retirement, you may find yourself building a new identity beyond your professional life. This can be an enriching period of self-discovery.

As we work with many members of The Church of Jesus Christ of Latter-day Saints, we often see that the Church will put you to work if you let them. What I’ve found is that this can be a very rich and rewarding experience, keeping people actively engaged in wonderful causes. This could be through church callings, ministering assignments, missionary work, family history, temple work, or, if you’re not a member, community volunteering, or just reaching out and getting involved in helping others.

There’s a great quote by Elder Packer that I like: “In your golden years, there is so much more to do and so much to be. Do not withdraw into retirement from life. Do not withdraw into a retirement of amusement that, for some, would be useless, even selfish. You are never released from being active in the gospel.” For some, this may mean serving a mission; for others, it may mean taking care of aging parents. It’s up to you to figure out what being active in the gospel means for your retirement.

As you figure out what that means for you, you’ll then enter the final phase of retirement: having a new routine, moving on with purpose and contentment. Eventually, this is where retirees come to terms with and accept their newfound retirement life. Some of the happiest retirees I know tell me that they don’t know how they ever found time to work! Your retirement can be a vibrant and fulfilling time if you approach it with intention and an openness to new experiences.

The last thing I’d like to say about the emotional preparedness for retirement is that, having worked with hundreds of retirees, I’ve learned that it’s the non-financial aspects of retirement that ultimately determine its success, much more so than finances. These non-financial aspects often influence the rest of your retirement plan.

To recap the five decisions: choosing trustworthy advice and resources, choosing to create an income plan, choosing when to retire, choosing to have a tax plan, and realizing that it’s not all about the money—there’s an emotional component to retiring as well.

Now, before I open it up to questions, I wanted to quickly mention something since we’ve had a lot of people asking about it. Many, if not all, of you attending today have a copy of Scott’s book Plan on Living. If you don’t, let us know, and we’re happy to send you one. This is the book where Scott Peterson wrote down the details of our sound investment knowledge and explains how we recommend creating an income plan with our Perennial Income Model.

Since we’ve received so many questions about it, I just wanted to put it out there that if you’d like to share a copy of the book with a friend, you absolutely can. Just feel free to email us at marketing@petersonwealth.com with their name and address.

“And if you’d like, we can send the book directly to them or to you so you can pass it along. Just let us know.

Before opening it up to questions and handing it over to Zach, I want to thank you all for attending today. Please take a moment to fill out the survey about today’s meeting when it ends. Your feedback would be greatly appreciated.

Question & Answer (48:47)

Zach, any questions?

Zach Swenson: No open questions yet, Alex. Let’s give it a minute to see if anything comes through, but nothing yet.

Alex Call: Okay. And if there are no questions, that’s great too. Thank you, everyone, for attending. If you do have any questions, please feel free to send an email. Thank you very much.