“So, When are You Going to Retire?”
This is a
question I’m often asked. Instead of my
usual flippant reply, I thought I’d provide a more thoughtful response.
This was supposed
to be the last year of my office lease.
Several months ago, I told my wonderful landlord, Sam, that I’d probably
move out at the end of the lease and move my office into my home. Two
days later I changed my mind.
I’m 67 now
and will be 68 in August, but surprisingly, I don’t feel a day over 66. Seriously, I still think I’m
young. I’m still fascinated with my
always evolving job. I like helping my
clients/friends. I walk a mile or so to
work 2-3 times a week. I walk 18 holes
of golf most weeks. I was away from the
office almost 8 weeks last year, and enjoyed some memorable trips with
Bella. I’m at The Weatherstone daily for
my morning coffee. Some afternoon coffee
breaks there have become beer breaks, particularly in the summer. Life is good
and I hope this will continue.
In 1978 I
answered a want ad for a “Financial Planner,” a relatively new occupation. Over the decades, I acquired clients and
tried to help grow their assets. Lately,
I’m more likely to be helping my clients prudently liquidate their assets. My clients seem to be aging as fast as I am. Some have actually retired.
During a
recent analysis of my clientele, I discovered this:
24% are 70 or older, 53% are in their sixties; 16% are in
their fifties; and only 7% are under 50.
Based on this demographic, it’s not surprising that three times as many
of my clients are regularly withdrawing from their accounts, as are those
adding money.
In many ways
this withdrawal phase is a time when having a trusted financial advisor is most
important. So, it’s not a good time for
me to retire. Besides, my work doesn’t
put much wear and tear on my body; it’s not like I’m operating a jack hammer
every day. I’m better now with helping
my clients deal with stressful financial issues than when I was younger. There is something to be said for wisdom
earned with age.
I’ve always
believed in positioning my clients’ accounts in well-diversified mutual funds
and managed accounts. Most of those
accounts are socially screened and automatically rebalanced. This means that even if I’m not immediately
available to help, these accounts should remain aligned with your most recent
risk profile. If you feel that it is
time for you to become more or less aggressive with your investments, or you
think that you will withdraw most of your funds within the next five years, you
should schedule an appointment with me.
There was a
long-time financial advisor at Protected Investors. He died in his early 90s shortly after
retiring. Once a week he came into PIA’s
Montgomery Street office to meet clients.
I admired Mr. G, a gentleman and professional, who always wore his
business suit. I’d like to be like Mr. G,
except for the business suit-part.
So, I don’t
know when I’ll retire or move my office home, but I suspect circumstances will
dictate my future. I’ll move on if I start
to feel old and tired; or if I don’t care as much as I do now; or if I outlive
most of my clients; or if dramatic changes in the financial industry make my
job less fun, or if a serious a health issue arises. Until then, be assured that I do have an emergency
succession plan in place and a longer term retirement succession plan as well;
part of my work every year involves preparing for this transition, whenever it
happens.
For now, keep me in your cell phone
contact list…or in your tattered old Rolodex.