After traveling recently with our three young children, I can tell you there is a cosmic difference between a vacation and a trip! A “vacation” is when Mom and Dad sit on the beach while reading a book, and the only concern of the day is if you are going to have one or two pina coladas. On the other hand, a “trip” involves packing up half of your house, unpacking half of your house at the destination, being on a strict eating/nap schedule, having enough snacks to feed an army, ordering food into the condo most nights, and lots of the same routines in a new and unfamiliar place. When comparing a trip and a vacation, a trip will involve more work, more stress, and a lot of organization/upkeep along the way.
Now, don’t get me wrong… Emily and I LOVE taking our family on trips. We recently spent a week in Crested Butte, CO and had a wonderful time outside of Hallie’s visit to the ER within an hour of arrival (everything was fine after her forehead was glued shut). I drove up with Hallie while Emily flew with Harper and Lawson. We spent a lot of time hanging outside, throwing rocks in rivers, walking (most people would not consider what we did hiking), and just relaxing. It was nice to escape the Houston heat on our first trip as a family of five.
Will YOUR Retirement be a Vacation OR a Trip?
It depends. It depends on what type of holistic planning you do prior to and also at retirement. It is very easy for retirement to become a “trip.” How much can you spend each month? How much stock/equity should you own in your investment portfolio? How do you generate consistent income when interest rates are so low? What kind of stocks should you own? How much can you gift to your grandkids’ 529 plans? When should you take Social Security? What will inflation do to your investment portfolio? Should you take the lump-sum or company pension? And the list goes on!
The fear of running out of money in retirement is also an interesting concept. It is not something that just happens one day… the fear of running out of money gnaws at you each and every day from the date you retire. It keeps you up at night. It is something you think about in your 50’s, 60’s, and 70’s. It can affect relationships and also your health. In our humble opinion, this fear/worry can be avoided by creating a Live Well Plan.
Our Live Well Plan encompasses and coordinates ALL areas of your personal finances. The Live Well Plan includes cash-flow projections and allows us to test adjustments in real time to predict your retirement readiness. This planning process helps us determine the proper investment portfolio you will need as you approach and walk through retirement. During this process, we will also develop a Family Index Number for you. This number represents the rate of return needed from your portfolio assets in order to achieve your goals and objectives with confidence.
During retirement, we update this Live Well Plan on a regular and consistent basis to make sure your goals are being met. Our retirement planning process can play a vital role in making your retirement a vacation!
Want to review your Live Well Plan? Or maybe you want help creating a custom retirement plan for your family? Give us a call.
About the Author
Matt Price serves as a Partner and Senior Vice President for The Price Group of Steward Partners. He resides in Houston with his wife, Emily, their three children and the family golden retriever. Matt studied at the University of Pennsylvania – Wharton School of Business for his Certified Investment Management Analyst (CIMA®) designation after receiving his undergraduate degree from the University of Tennessee - Knoxville. Over the past 10 years, Matt has helped families make high quality, common sense decisions regarding their wealth and their legacy. Matt firmly believes that everyone needs a wealth coach!
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