Retirement Planning at Hampton Wealth Management

When most people think of retirement, it may seem far away. However, the reality is that retirement has several stages. The stage that you will find yourself in is largely driven by where you are in life, not necessarily age.

Not Your Parents' Retirement

One thing is for certain: notions of retirement have changed over the past 30 years. This is definitely not your parents' retirement, which will probably continue to evolve from Baby Boomers (born 1946-66), to Generation X (born 1967-76), to Generation Y (born 1977-87), and onward down the line.

Considering the following:

Our discussion on retirement planning will focus on larger trends to make you aware of what's going on out there. Of course, we have available a full array of retirement accounts and investments available at any brokerage firm: Traditional IRA's (Contributory or Rollover), Roth IRA, Small Business Plans (SEP-IRA, SIMPLE-IRA, Profit Sharing Plans, Pension Plans, 401(k), 403(b)(7), even Annuities, etc...) You can find more details by visiting the websites of any of our custodial partners. If they can do it, then we certainly can too then. We would like to go beyond the obvious and delve deeper into demographic trends, emotions surrounding lifestyle issues, financial readiness, and the portfolio considerations that will manifest themselves throughout various stages of retirement.

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Increasingly, retirement is not a finish line. The old days of kicking back and doing nothing are gone. Today's retirees as well as tomorrow's are focusing on what will be the next chapter in their lives' great adventure... without relying on Social Security or company pensions... compounding them in different directions to include not just kids and aging parents, but also dysfunctional siblings. As people have left the rat race, they have come to realize that giving back and having loving family and friends are the keys to happiness in life and staying youthful longer.

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Four Stages of Retirement

  1. Accumulation — During this stage, we all like to imagine what retirement might look like, say, up to 25 years from now, as we gradually contribute to our retirement vehicles and personal savings. From a lifestyle perspective, we are concerned about achieving meaning through our career rather than via our retirement. Our emphasis in planning is more on growth rates than cash flow, because so much can change over the next 25 years, let alone the short term.

  2. Transition — During this stage, say 10 years from your target retirement date, the focus changes from imagination to anticipation. Lifestyle issues relate to: timing of retirement, superannuation (outliving your money), whether to work or not in retirement for meaning, expense management, health, and legacy considerations. As retirement draws near, it becomes imperative to map out the details with a financial planner as a reality check. It is also time to consolidate assets to get a better handle on where you stand vis-à-vis retirement, if you haven't done so already yet.

  3. Distribution — During this "go-go" stage, anticipation finally turns into liberation, as you have more time to pursue interests that you may have put off throughout life, to rekindle family relationships, and to explore new hobbies. From a financial perspective, annual reviews with your financial advisor would be important to make sure the spigot keeps flowing and replenishing your liquidity pool.

  4. Legacy — During this "slow-go/no-go" stage, liberation eventually fades into reorientation. After the initial euphoria wears off, the quest for meaning begins. In other words, what do you want to be remembered for when you leave this world? From a financial perspective, one would hope that you have already tested and selected a trusted advisor who can manage your financial affairs and partner with any other relatives or professionals to make sure you are taken care of, especially as your mental faculties start to become fuzzy. Please see our link on Estate Planning for more details.

So, you can see that at Hampton Wealth Management, we want to focus on the lifestyle and emotional issues, as much as we focus on the planning and investment issues. We need to understand who you are and what you're all about in order for us to configure your financial plan and investments accordingly. Without addressing both sides of the equation, we are not really having an integrated discussion. It's not just about making you money. Tactical brilliance and prudent investment strategies are only a means to an end. At the end of the day, we want you to know that we genuinely care about our clients as friends and will do everything we can to develop and maintain long term trust.

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Different Strokes for Different Folks

Hampton Wealth Management can help get you to retirement, whether you just need the map (i.e. financial plan), want us to be your wingman (i.e. validation on a nondiscretionary basis), or even be your pilot and fly you there (via fully delegated, discretionary money management). Whatever level of help and advice that you need, we can be certain to find a role in helping you achieve your vision for retirement, while pointing out the pitfalls along the way too.

Please contact us for a free one hour consultation. We are absolutely positive that you will find the conversation engaging and informative. You can also briefly learn more about how Hampton Wealth Management can partner with you over time to breathe life into your future plans — no matter what stage you are in currently.

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