I will turn 70 next month. I have been semi-retired for five years and fully retired from my last full-time employer for three years. I find a number of my close friends, who elected to keep working after age 65, are now shifting to full or partial retirement at age 70 and I thought I would share with readers of this blog some of the advice I have been informally providing to friends.
For high achieving Baby Boomers with well established careers, it is scary to think of giving up a career in which you are still investing more than 40 hours per week, which provides status and professional recognition, and which is the nexus for many of your social relationships. A number of my friends are very concerned about how they will fill their time post-retirement.
I was fortunate in being able to cut back with my full-time employer, from working 50+ hours per week as a stock analyst covering seniors housing and care stocks and healthcare REITs to working 20 hours per week in investment banking focusing on business development and providing input on industry trends and corporate strategy for M&A transactions and capital raises. This step-down in time, together with a shift in my responsibilities, kept me productively engaged while allowing me to ease into retirement. I believe employers today are more open to these types of arrangements but, based on feedback from friends, this seems to work less well for law firms and other employers that bill by the hour.
When I ceased working as an investment banker part-time for my long-time employer – Stifel Nicolaus, it was my choice to end the relationship. I was spurred to retire by my older brother’s death, which increased my desire to enjoy more of life while I was still healthy. However, I still wanted to remain professionally engaged post-retirement, so I set up Robust Retirement, LLC as a vehicle though which I could provide consulting services with a liability shield and set up this blog to allow me a platform from which to comment on industry issues. Setting up and maintaining an LLC and a web blog is not very difficult. In the years since I fully retired, I have done a number of consulting assignments through my LLC and served on the Board of Directors at the publicly traded healthcare REIT – Quality Care Properties.
My advice to pending retirees or those contemplating retirement.
- Don’t do too much pre-planning of your time in retirement or make a lot of commitments.
- Take some time to clear your head and reflect on what’s really important to you.
- Observe and talk with friends and neighbors about how they transitioned to retirement and what they like and dislike.
- Dabble – take some courses, try some organizations and see what you like before you commit.
- Avoid getting over committed to too many volunteer organizations or projects. It’s okay to say no – my own rule is no more than one board or major volunteer assignment at a time.
- Free, unstructured time is okay.
- Commit to an exercise regime. Vigorous exercise is one of the few things that can extend your good health. My current program includes boxing/intensive cardio twice a week, yoga and tai chi each once a week, weight training once or twice a week and golf once or twice a week now that the weather is turning warm.
- Consider a move to a condo before or shortly after you retire unless you really enjoy yard work. My wife and I moved to a high rise condo with a doorman and valet parking. One story living with someone to help with deliveries will allow us to stay in our current home for many more years and, if you are looking for more than two bedrooms in a well-located condo, these can be relatively hard to find.
- Stay connected with professional colleagues – I belong to one professional association with a local chapter that keeps me connected and make a point of connecting to former colleagues for lunch or drinks from time to time.
Notice some things not included in the above list – buying a second home, relocating to a warming climate or lower tax state. These reflect my personal preferences. I don’t want the added work of maintaining two homes and prefer to remain in a location where we are closer to family and long-time friends.
We do travel a lot but that is not for everyone. This past winter, we traveled a week a month to someplace warm (Hilton Head, SC and the Caribbean) and over the last several years have traveled to Scandinavia, Israel, Northern Italy, Costa Rica, the Galapagos and more. A planned Spring trip to Japan was just cancelled by our tour operator but eventually the virus will pass and we will be on the road again.