It's Not Just About The Money

By Mark Mills

Still following up with some reflections from the Boomer Business Summit.

I interviewed James Weil, Managing Director of Successful Aging for LifeCare, Inc.

He talked about a coming overhaul in planning for retirement. For years, he said, it has been all about the money. All the planning has revolved around saving to build up a nest egg, and crunching the numbers to see how much you could withdraw from your savings each year for the rest of your life. Unfortunately, says James Weil, for most people the numbers don’t look too good, and they get discouraged.

Weil says a new model is emerging, and will be dominant within 5 years. He says the future will be about life planning, and less about number crunching. Boomers need to save and plan the financial side of their retirement, but they should look at the future more broadly. If you haven’t saved a million bucks it doesn’t mean you’re doomed to a lifetime of Hamburger Helper.

Boomers won't have to retire cold turkey. They can "retire" from a primary career, says Weil, and then supplement their incomes by working in jobs that turn them on. Find an outlet for a passion and make a little extra money at it. Maybe you love golf. OK, so you can’t make it on the Champions Tour. But maybe you can get a job managing a club, or assisting in the pro shop, or working as the starter on the first tee. Earning extra income in a field you enjoy will stretch your retirement savings, and make those numbers look a lot better. And maybe you can sneak in some free golf in the off hours.

Do you love art? Work part time in a museum. Love to cook? Maybe you can do some short-order work in a diner. Are you a handyman? They need you at Home Depot.

These may all be lower paying jobs than you have had. But you would not be building a career at this stage. Just finding something you enjoy doing that brings in some extra money.

James Weil says he has seen many pre-retirees visibly relieved when they look at the big picture and all its possibilities. Let's not obsess over those discouraging spread sheets that show you going broke in 8 years. There are plenty of ways to make some extra money, and plenty of ways to cut expenses so you won’t need a 7-figure nest egg.

Let’s think about our lives, and not just about the money.