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Steve Gresham
The Trimesters Of Retirement
Don ’ t be fooled by the early stages — longevity has implications .
I
’ M OFTEN CHALLENGED BY ADVISORS AND INDUSTRY EXECUtives , who say , “ We don ’ t hear a lot of complaints from retirees . So why do you say most retirements will be a train wreck ?”
Would it be in poor taste to observe that there were very few complaints from the passengers of the Titanic during the first four days of the voyage ?
“ Retirement ” is a terribly misleading concept . For many people , it is a destination — a long awaited moment to cast off a job they don ’ t love , a boss they despise or customers that are too demanding . Now it ’ s their time — time to travel , to relax , time for hobbies , for family or to just do nothing . The most popular word I hear associated with retirement is “ freedom .”
But the cruise ship of retirement faces icebergs — the type of obstacles you encounter when you live longer ( legal troubles , health scares , etc .). The longer you cruise the SS Retirement , the more chances you have to run into something that ’ s going to sink the boat .
Would it be in poor taste to observe that there were very few complaints from the passengers of the Titanic during the first four days of the voyage ?
Never Say ‘ Unsinkable ’
The Titanic ’ s captain , Edward Smith , infamously ignored warnings by other captains on his course and was on record for years before the tragedy extolling the virtues of modern shipbuilding to the point where he “ could not imagine any condition which would cause a ship to founder .” He sounds like a devotee of Monte Carlo simulations who doesn ’ t acknowledge the statistical reality that 70 % likelihood is not a guarantee of success .
So what if his passengers had been told there was only a 35 % chance of success ( albeit in a short side trip in a lifeboat )? Would John Jacob Astor IV , a billionaire in today ’ s dollars , have bought that ticket for himself or his pregnant wife ? Astor drowned at 47 along with 65 % of the passengers and crew ( though his wife survived and the child was born ).
Mind The Trimesters Remember the three phases of retirement : “ go-go ,” “ slow-go ” and “ no-go .”
Way back when I was an advisor to families , I met a couple who had already quit their jobs . At 61 and 60 , Dick and Ginny were active true go-go retirees . They had his pension and were financially secure . From me , their first ever advisor , they were looking more for validation of their choices .
“ Tell me about your plans ,” I asked . They enthusiastically described winters of skiing and summers of sailing their boat along the coast of Nova Scotia . “ Wow ! That sounds great !” I said . “ So what ’ s next , when one of you may not be up for that effort ?” I went on to share how it ’ s very common to have great plans but that Mother Nature has her own and longevity can be a spoiler .
I developed this attitude of being straightforward and skeptical after see-
28 | FINANCIAL ADVISOR MAGAZINE | SEPTEMBER 2023 WWW . FA-MAG . COM