"QUALITY OF LIFE" (I think you'll
find this interesting. Or jump to the Bottom Line.)
Everyone's definition of "retirement" is different. One client I met with recently wants to "throw in the towel,
mortgage his home to buy a second home, and travel the world" at age 55. Another client who loves his job and current lifestyle, wants to
continue working through his 60's and 70's ("as long as they'll have me"), but in a reduced capacity.
Financial advisors use a rule of thumb that a person will need 70-80% of their current income at
retirement. Notice the 2 very distinct interpretations of retirement above. In your opinion, who is more likely to
fit the 70-80% rule, and who is likely to need 100% or more of their current income?
It is for that reason that I've chosen to ask "QUALITY OF LIFE" questions when I do retirement projections and
planning. It's not a dollar amount we are shooting for; it's a definition of lifestyle that we want to achieve. Some people are
achieving their optimal quality of life RIGHT NOW, working 9 to 5; others feel as though they have to suffer 30 years of indentured-ness
until they can call it quits.
Bottom line: Your definition of retirement
affects your quality of life both now and once you retire. Your likelihood of success is determined by how well you balance your present and
future resources.
