CHOICE The main factor that affects retirement happiness is: CHOICE. If you feel that you have choice, you will feel less stressed and more in control of your life path. Money gives people choices. But the ones who are content are those who’s choices are not expensive.
Spend less than you have. NEED LESS.
Sounds simpler than it is, but in all honesty, what we see is that the retires that are the most happy are not those with the most income or the most retirement assets. The happiest retires are the people who have saved very well and consistently and they have lived on a modest income their entire lives. In retirement they continue to live on a modest income because that is their normal. They travel and do everything they want to do but what they want isn’t out-of-control. They are balanced.
Choice is also highly coupled with control of your investment accounts. If all of your money is in IRAs (or like-IRA accounts, i.e. 401Ks), the IRS has some control over those accounts, they have rules regarding how much you can put in and when you can take it out. They say you can’t take it out and then they say that you have to take it out. They say who can own it. They say how it can be invested. They say how it will affect your taxes.
Having a non-IRA account, a flexible bucket of invested money, that is not controlled by the IRS, can be an important factor to give you retirement choice. Either for a 2nd home, an adventurous vacation, a new car, dental work, old-age care, Disneyworld with the grandkids … it is nice to have CHOICE.
By Cammie Humke, Investment Adviser at The Humke Group, Inc Located at 555 S. Randall Rd in St. Charles, IL, phone 630-584-7343
The Humke Group, Inc is an independent firm offering securities through Summit Brokerage Services, Inc., Member FINRA/SIPC. Advisory Services offered through Summit Financial Group Inc., a Registered Investment Adviser. Opinions expressed are that of the author and are not endorsed by the named broker/dealer. All information herein has been prepared solely for informational purposes, and it is not an offer to buy or sell, or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular trading strategy.