THE REALITY OF RETIREMENT
This stage of your life may be very different from what you envisage it to be.
My wife and I recently had the privilege to embark on an extended holiday which included an ocean cruise of almost a month. It truly was a fantastic experience. What I did not expect was the fact that my wife (she is about a decade younger than me – that sounds terrible …) and I were probably in the 10% youngest group on the ship.
Although I can probably be considered to be of retirement age (60+), I still actively work. Although I can probably afford to retire, I choose to work because I love my work, and hopefully, I will be able to continue to do so for many more years (hopefully, my colleagues don’t cringe when they read this).
I don’t think that I will stick it out like Charlie Munger, who recently passed away at age 99, and Warren Buffett, currently aged 93. Munger worked until his death, and everybody knows Buffett, who still goes to the office every day while heading up Berkshire Hathaway, the most successful investment business in the world. I believe that Warren will follow Charlie’s example and work until his death.
Berkshire Hathaway employs around 400 000 people, so one can assume that investment decisions are made by many investment strategists and investment teams and not by Buffett and, up to recently, Munger. Yet not many people know any other name associated with Berkshire Hathaway except Buffett, with Munger a close second. These two distinguished gentlemen truly built a phenomenal business and personal wealth, yet to the end, they remain humble and generous. A lesson all of us can learn. Google these two gentlemen. You will be surprised how simple their lives were/are and how little value they placed on extreme luxuries, including fancy houses.
By now, you may be wondering what my cruise and Munger and Buffett have to do with a financial-related article. Well, during our cruise, I witnessed a vast variety of people from all walks of life and of varying nationalities on the cruise. I also had the privilege to interact with many people, and their stories and lives are fascinating. It really hit home that there are some facts that we just must accept in life and many that we cannot avoid while getting older.
In past articles, I alluded to our company motto, “Live life fully now”. We make an effort, and it is a crucial part of our financial planning process, to guide clients to enjoy their lives while they still have the health to do so. Everyone should have a bucket list and goals. Something to look forward to. Something to work for. Retiring comfortably is not a goal simply because you have no control over what your health will be like as you age, and that places a totally different spin on “comfortably”. What will retirement look like? Reality check: retirement may be very different from what you envisage it to be.
Our recent cruise was on my bucket list. It was earmarked for “when I am retired”. I am grateful that we were enticed to join the cruise now rather than later. It was not planned, but we were “lured” into it and for that, I thank our friend Sibylle. Why do I say this?
Firstly, many of the passengers could not enjoy some of the activities on the ship nor most of the excursions offered when we were in ports. Health issues like mobility challenges causing difficulty in walking due to bad hips, damaged backs, breathing difficulty due to lung and heart problems, and general frail conditions hampered many people.
I doubt that any of these people anticipated these health issues 10 or 15 years ago when they dreamt about their cruise. I have no idea what my health will be like in 15 years’ time or even in five years’ time. What I do know is that five years ago, I would have been able to participate much more vigorously in some of the more challenging excursions and that five years from today, I will probably not be able to enjoy the excursions that we enjoyed this time round as much as I did now. That is unfortunately a fact of life. One that we too often choose to ignore.
We all age, and we cannot escape ailments irrespective of the money we have. It was ironic seeing old timers with massive gold chains around their necks, Rolex watches, brown-tanned bodies and colourful Speedos strutting their stuff around the various pools. In spirit, they are still in their 20s, but the evidence became clear on the dance floors at night when discos and dance classes were over-populated. Their moves were just not the same as in their heyday …
It was, however, fantastic to witness everybody having a good time. Even those in wheelchairs had a silent giggle at some of the dance floor antics. While I was playing judge of those who thought they were on a talent show, I thought how much more they would have enjoyed the antics 10 and 15 years ago, especially those who could not partake in the joyous mood. Herein lies my message. Don’t wait for retirement or “someday” in the future. Live life fully now because you just don’t know what five years from today will look like. Work it into your plan.
Secondly, the breakaway and the time of just doing nothing were precious. Unfortunately, our stopovers in Egypt, Jordan and Yemen were cancelled due to threats to shipping liners in the Suez Canal and the Red Sea. This increased our time at sea and gave us extra time to laze around next to the pools and even riding the super tube, which is a story on its own. People who know me will testify that this is something I am no good at. Doing nothing, in my view, is a total waste of time. How wrong was I! I learnt to relax, clear my mind, and just think of nothing. I cannot emphasize enough the importance of taking the time to unwind and just chill. Everybody needs that.
This article probably had no financial planning advice with targets, funds, returns etc. But planning is more than just about the money. Life planning is equally important, and you do not need to go on a cruise to experience it. In our beautiful country, there are many places we can go and experience “us time” to clear our minds. I most certainly plan to do that more often than in the past.
Check your bucket list. Move those planned dates forward and enjoy them to their fullest while you can. Don’t be the spectator in the wheelchair. Set the dance floor alight while your legs still allow it.
Live life fully now. With careful planning, you may just be able to move your bucket list a bit closer to today.
