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1. Don’t assume you’ll be spending less money. Most financial investment formulae underestimate the amount of money required for retirement because people assume they will continue their pre-retirement standard of living. Even if you’re lucky enough to have your house paid off, you should not overlook ways of cutting back: eating out, multiple vacations, leasing new cars every two years, two homes, not banking your adult children, wasting money on life insurance, and subscribing to multi-year (more than four) long-term care health insurance. The rule of thumb is that one will need 70% of their pre-retirement income to maintain their standard of living.



2. Free time costs money. Get a hobby and stay busy to keep from dumping money in extravagant toys. Travel constitutes the largest expense for retirees; the more practical option is to plan early and buy property where you want to retire; instead of retiring in a tourist area (e.g. Sedona, Arizona), you can pick a working class town 30 miles away (Cottonwood).



3. Consider working in your retirement. Your brain is the most important commodity you have and your ability to earn an income does not diminish with age. Work will avoid major identity issues with workaholics. The more all consuming your career, the more difficult your retirement without some work outlet.



4. Make sure you and your spouse are compatible because you will be spending a lot of time together. Couples need to renegotiate their time together and their routines, just as they did early in their marriage, according to Phyllis Moen, a sociology professor at the University of Minnesota. Developing common interests keeps relationships strong. One couple I know started a boutique baking business, selling cakes and desserts to upscale restaurants in Houston; another couple bought a cruise franchise and now plan trips for other retirees, with unlimited cruises for themselves. But be skeptical of franchise offers, as mentioned in my book, Retirement is for Sissies (Amazon.com), because the average 400 franchise cost cannot be recouped the first four years.



5. Consider working for your kids. This may sound strange, but many extended families have bonded together economically to offer mom and pop a part-time job that allows them to maintain their pre-retirement standard of living at the same time providing valuable mentoring to their children. This only works if your children own their own businesses and work conflict is avoided (remember your children are the bosses). If you sold the business to your children, have a third-party design an exit strategy for yourself.



6. Finally, the most important lesson of all—take time to smell the roses. Work at a more leisurely pace: breakfast at 10 am, do not respond to crises, take time for fun and exercise, mentor the young, enjoy a long lunch, and take a 20-minute power nap.

Buy my book, Retirement is for Sissies, to gain additional insight that retirement is a myth. Work is an action verb for those who are adventurous, healthy, and spiritually connected.


If you’re in your 30s and 40s, stay away from retirement seminars that focus only on money. Remaining a contributor to society rather than only a consumer changes one’s perspective from present to future-oriented.


3. Instead of a retirement party, give yourself an “engagement” party to continue to enjoy life with a network of family and friends. Emotional health is key to enjoying your “retirement” years.

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