Exploring: Replacing An Outdated Paradigm For The “Retirement Years,” And Exploring a New Phase of Life

By Erik O. Strid

Traditional language identifies this stage as "The Retirement Years". However, it appears that a new definition is required to describe the emotional, physical, and psychological changes which are experienced. The term "Retirement" implies an ending, but it is now becoming clear that this stage of life is actually a new beginning – a complex, uncertain but exciting stage of life.

This book is intended to help provide a clear vision for these years, and to anticipate what is likely to come.

• Language: English
• Publisher: BookBaby
• Release date: Oct 1, 2019
• ISBN: 9781543982879

Book preview

© Erik O. Strid 2019

Print ISBN: 978-1-54398-286-2

eBook ISBN: 978-1-54398-287-9

All rights reserved. This book or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of the publisher except for the use of brief quotations in a book review.

Disclaimer

The opinions expressed in this book are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security. It is only intended to provide education about the financial industry. To determine which investments may be appropriate for you, consult your financial advisor prior to investing. Any indices referenced for comparison are unmanaged and cannot be invested into directly. As always please remember investing involves risk and possible loss of principal capital; please seek advice from a licensed professional.

Contents

Acknowledgements:

About the MIT Age Lab

Living Life 8,000 Days at a Time

Entering New Territory

Exponential Increases in Life Expectancy

Uncharted Territory

Destroying an Old Stereotype

Exploring Your Freedom: The Honeymoon Phase

Who Are You? What Do You Do?

Where Is My Paycheck?

Goal Setting and Budgeting

Assessing Your Income Streams

Running the Numbers

Develop a Written Plan

Invest for Success

Execute Your Plan

Do the Kids Get to Come on the Honeymoon?

A Complicated Transition

Settling in: The Big Decision Phase

Where Will We Live?

3 Key Questions

Decisions, Decisions

Finding your Purpose

Growing Older: Navigating Longevity

Health Care Administrivia

Daily Living Administrivia

Caregiving

Managing Financial and Legal Affairs

Changing Social Well Being

Staying Connected with our Network

Discover New Connections:

Staying Mobile

Embracing Technology

Transportation

Extending Working Life

Maintaining our Social Network

The Connected Home

Staying Healthier

Climbing the Learning Curve

The Final Chapter: The Solo Journey

Revisiting the Honeymoon Phase

The Role of Work

Income Planning

Managing Family Dynamics

Revisiting the Big Decision Phase

Revisiting Navigating Longevity

Maintaining a Social Network

A Time for Peak Satisfaction

Life, Liberty, and the Pursuit of Happiness

Our Fundamental Rights

Is This All There Is?

What Are You Retiring To?

Retirement Planning

How Can Concentus Wealth Advisors Help?

About Concentus Wealth Advisors

Exploring Issues: Self-Assessment Exercise

Acknowledgements:

I owe a debt of gratitude to all of those who helped to make this book possible, as well as those whose accumulated wisdom is the foundation of the concepts discussed here.

First and most importantly, it would never have been possible to write this book without the comprehensive research and insights of the great people at the MIT AgeLab. Dr. Joseph Couglin and his colleagues at the AgeLab provided the research and the insight to develop the 8,000 days framework described here, as well as the various stages of aging in the Exploration stage of life. Their work is the primary basis for this book. I would also like to recognize the Hartford Funds for having the foresight to create a partnership with the AgeLab, and for making their research available to financial advisors throughout the country. It is through that partnership that I was exposed to the wonderful work of the AgeLab.

I also owe a huge debt of gratitude to author Nick Murray, whose philosophy of investing and wealth planning inspire my wealth management practice.

I also thank my dedicated team at Concentus Wealth Advisors, the foundation of my success in business: my father Jerry, who started it all; my brother Paul, who keeps our business running smoothly and efficiently; and my team: Tom Greco, Nathan Hayward, Bryan Dalesandro, Jack Liberatore, Donna McNally and Tracy Hudash, who bring passion and a deep sense of commitment to client service with them to work every day.

I would also like to thank all of the clients who have entrusted our team with the financial well-being of their families. These wonderful relationships, many of them lasting many years, have enriched my life tremendously, and provided me with the framework under which to develop many of the insights that I write about in this book.

Finally, I could never be the man I am today in business or in life without the incredible relationships I have with my wife Karen, and our children Carter, Max and Emma. They make me incredibly happy, and their support encourages me to be everything that I am today.

About the MIT Age Lab

The AgeLab was established at MIT in 1999 as a multidisciplinary research program that works with business to improve the quality of life of older people and those who care for them. The AgeLab applies consumer-centered thinking to understand the challenges and opportunities of longevity and emerging generational lifestyles, to encourage innovation across business markets. Their insights are critical for anyone who is nearing retirement, or who has loved ones such as parents, aunts, or uncles who are entering this stage of life.

The folks at the Hartford Funds have a keen interest in studying the future of the wealth advisory industry, and trends which will impact the delivery of financial advice in the future. They had the wisdom and foresight to partner with the AgeLab to develop content specifically tailored to helping financial advisors better understand the needs of investors as they live through the Exploration stage of their lives. This book is based on the research and insights which were developed in the MIT/Hartford partnership, which they have generously made available to our team at Concentus.

Living Life 8,000 Days at a Time

We have a longevity paradox. Now that we have achieved what humankind has tried to achieve since it has walked – living longer – we really don’t have a good idea of what to do with all that additional time.

– Dr. Joe Coughlin, PhD, Director

of the MIT AgeLab

The MIT AgeLab has come up with an interesting model to describe the basic math about modern lives. Let’s assume that a person, with a college education and good income, is now likely to live well into their 80s. This person’s life can be divided into four segments, averaging approximately 8,000 days, or 22 years, each. Your first 22 years of life are spent Learning, primarily attending school. You graduate from college when you are right around 22, and you enter a period when you are Growing. Perhaps you get married, and take on a first job, you buy your first home and start raising young children. Then right around the time you hit 44 or so, you reach a period we traditionally call Middle Age, when you are Maturing: your kids are getting older, and probably heading off to college. Your professional capabilities are really growing, as are your financial responsibilities. Finally, right around age 66 comes a time we traditionally call Retirement. We can think of these life segments in the following way:

Learning (Birth to Age 22)

The first stage of our lives is mostly about learning, and our primary focus is on obtaining new skills and knowledge to prepare us for the challenges and opportunities we will face over the rest of our lives. During these years, we spend most of our time in school, and are taught and mentored by our parents, grandparents, teachers and coaches.

Growing (Age 22 – 44)

In the next stage, we begin to build upon all that we learned in the first 22 years of our lives. This is the time for us to strike out in the world and use that knowledge to build our own lives. We begin our professional career, establish a relationship or find our spouse and marry, possibly have babies and raise young children, and buy our first home.

Maturing (Age 44-66)

Between age 44-66, we are hitting our stride professionally and experiencing our peak earning years. That is a good thing, because our lifestyle is also becoming more expensive. We may now be paying for college for our children, or even supporting our own aging parents. We buy a nicer car, a bigger house, and perhaps a vacation home. We may even welcome grandchildren. These are busy years in which our responsibilities are at a peak: our professional responsibilities are the most demanding of our lives, we are focused on the task of raising adolescent and teenage children, and we may even be responsible for caring for our own parents.