Marathon, Not a Sprint: Longevity Planning for the Modern Retiree
By Kraig Kleeman
Picture this: you’re sitting down for coffee with me, Shawn Carpenter, ready to chat about your retirement plans. As 2025 draws near, you’re juggling between the allure of ETFs and the siren call of single stocks. Let me share some wisdom, garnished with a bit of humour and real-life stories, from my experience as a financial advisor.
Making Your Money Last: It’s Not Just About Meeting Your Advisor
So, you’re worried about outliving your savings? You’re not alone. It’s like planning a road trip without knowing the distance. Here’s a personal tip: think of ‘Income Layering.’ It’s like building a lasagna – each layer must be perfect for the dish to work. You’ve got Social Security (your base layer), maybe a pension (the meaty part), and your investments (that’s the cheese). Online tools can help simulate different income scenarios, but they’re just starters. For the main course, a good financial advisor is irreplaceable.
The Tax Monster Under the Bed: It’s Real and It’s Lurking
Many of my clients initially treated taxes like a mythical creature – frightening but inaccurate. But taxes in retirement can bite and bite hard. Think of them as in-laws. They might not be your favourite, but you’ve got to deal with them. I often suggest looking into Roth IRA conversions or investing money into tax-efficient ETFs. Keep abreast of tax changes – they can flip faster than a pancake in a skilled chef’s pan!
Inflation: The Silent Dream Snatcher
Inflation is like a leaky faucet – ignored until it floods your bathroom. I’ve seen many clients who didn’t factor in inflation’s sneaky impact. Diversify your portfolio with stocks or real estate, and don’t forget about TIPS. They’re not glamorous, but consider them your portfolio’s insurance policy against inflation’s whims.
Playing the Longevity Game
Planning for retirement is more a marathon than a sprint. I once had a client, let’s call him Bob, who arranged for a ‘standard’ retirement, only to live 30 years more than he expected! To avoid a similar surprise, consider longevity insurance products like deferred annuities. They’re your financial plan B, ensuring you don’t run out of funds even if you hit a century. And remember, flexibility is vital. Your withdrawal strategy should have the rhythm of a jazz tune, ready to adapt to life’s ups and downs.
Bonus Brew: Sipping Through the 2025 Retirement Scene
As we look towards 2025, let’s focus on ETFs and single stocks. It’s about balance. ETFs are your portfolio’s whole-grain bread – healthy and essential. Single stocks? They’re like the occasional decadent chocolate – exciting but to be enjoyed in moderation. And keep an eye on the horizon for tech and healthcare advancements. They’re game-changers that could make your retirement look different than what’s on your current map.
So, as we finish our coffees, remember: retirement planning is more than crunching numbers. It’s about crafting a life you can enjoy with the occasional indulgence and plenty of safeguards. With a mix of careful planning and adaptability, you’re not just surviving your golden years; you’re thriving in them. Here’s to a retirement filled with joy, comfort, and a bit of adventure!
About Shawn Carpenter
Shawn Carpenter is an experienced entrepreneur and executive in the fintech industry, known for his visionary leadership and expertise in investing and analysis. As the co-founder of YCharts, a leading financial analytics and investment research firm, he led the company through a remarkable journey of growth and success. Under Shawn’s stewardship as CEO, YCharts expanded its user base to millions and secured $14.5 million in funding, demonstrating its profound impact on the market. This growth trajectory culminated in the acquisition of YCharts by LLR Partners.
Shawn’s experience also encompasses a pivotal role as Chief Marketing Officer at Guaranteed Rate and a strategic position in Google’s Revenue Intelligence group, contributing significantly to its early development.
In 2023, he expanded his influence in fintech by acquiring StockAlarm, a platform offering real-time alerts on stocks, futures, forex, and cryptocurrencies. His foray into Bitcoin mining underscores his commitment to staying at the forefront of emerging financial technologies. Shawn’s career is a testament to his strategic acumen and ability to guide companies through significant growth and evolution in the intersecting spheres of technology and finance.