By Eric Reich
In the last few articles, we have covered what to do in the years leading up to retirement and what to expect in the early years of retirement. Now we are moving on to the mid-years of retirement.
This may be characterized by feeling like the novelty of retirement has worn off, and you are settling into your “golden years”. Retirees often laugh and tell me that this is the boring part. What I believe they are referring to is that they are starting to slow down in terms of activity. This might be characterized by less travel and less dining out. This is what I refer to as a normalization of retirement.
This can be a great time for many retirees. The reduced feeling of constantly being on the go may be replaced with a contentment of simply enjoying retirement and the time spent with family and friends. Sometimes this stage doesn’t happen by choice, but rather because of health reasons. Again, this is why working diligently to maintain your health is so important.
Characteristics of mid-stage retirement include:
- Reduced expenses
Now that the newness of retirement may be wearing off, traveling, dining out, and completing bucket list items may not be the same priority that they were at the beginning of retirement. Expenses may start to reduce. This is where I often see families with multiple cars start to consolidate. This saves in multiple ways, including reduced insurance costs and maintenance and repairs. This is a good time to reassess expenses in general. Are you really watching 1200 TV channels, including all the premium subscriptions?
2.Downsizing
It is not uncommon for retirees at this stage to begin to think about downsizing. This certainly goes along with reducing expenses. Downsizing can save money on virtually everything in your home: insurance costs, taxes, utility bills, repairs, maintenance, and the list goes on. I prefer to consider downsizing at this stage instead of waiting until the final stage, which is often at an age when you may be physically less able or inclined to want to make a big move.
- Less stuff
Like downsizing your home, mid-stage retirement is a great time to consider downsizing your life. Having less stuff makes life less complicated. Start thinking about what you should part with and how. This is when I suggest thinking about who gets what when it comes to your stuff. I feel like many retirees wait until the late stages of life to begin this process, and many of them say they wish they started the process earlier.
Mid-stage retirement, while perhaps not as exciting as the early stage, can be a great time to just enjoy life. Getting prepared for the final stage of retirement now can make life a lot easier when you have prepared as many things as possible in advance. After all, the point of retirement is to enjoy yourself, and waiting until the last minute with anything in life rarely makes it more enjoyable.
Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Reich Asset Management, LLC is not affiliated with Kestra IS or Kestra AS. The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor with regard to your individual situation. To view form CRS visit https://bit.ly/KF-Disclosures.
Eric is President and founder of Reich Asset Management, LLC. He relies on his 25 years of experience to help clients have an enjoyable retirement. He is a Certified Financial Planner™ and Certified Investment Management AnalystSM (CIMA®) and has earned his Chartered Life Underwriter® (CLU®) and Chartered Financial Consultant® (ChFC®) designations.
