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SEPTEMBER 2018
YOUR LIFE NEEDS A And That Plan Needs Action Plan
A t 60 years old, I am now close to the age where many people think about retirement. It seems strange because I have been working with retirees or helping clients retire since I was 24. Looking back, I had a very deliberate plan to get to this age with a set financial security goal in mind. I want to show you how to use a quick planning tool to think about your future and all you still want to accomplish. Two editions ago, we talked about creating a timeline of your money and how that structure can have a meteoric impact on our finances. In the last edition, we focused on habits and the significance they play in our future, both financial and experiential. These concepts are great in theory, but many people struggle to put them into practice. That’s why we take our clients through a specific exercise to help. My eldest granddaughter is 8 years old. When I look at how fast she has grown up before my eyes, I can’t help but think of what I want to accomplish and the moments I want to create for her before she heads off to college. The exercise starts with writing out your age and the ages of the important people in your life across the top of a sheet of paper or spreadsheet. Then down the left column, spacing out in increments of 5–10 years, update everyone’s age.
For example, in 10 years, I’m 70, Olivia is 18, etc. This allows me to put into perspective what I might want to plan at each age with each family member as we both grow older. You can reflect on problems and opportunities that might arise. Think through how to prepare for problems and capture opportunities.
new friend in Tel Aviv a little while back, and he was contemplating what to do with a substantial bonus he was about to receive from work. He had a girlfriend at the time, and I knew it was serious. I asked him if they were going to get married, when he thought they might have kids, and if they would need a bigger house if they did. The next time we talked, he had spent a lot of time contemplating my question. He had not only asked for his girlfriend's hand in marriage, he had also laid out a plan to have kids in 2 1/2 years, made buying a house his top priority, and knew exactly how to invest the funds from his bonus. Doing this exercise can give you a great perspective on events that will happen in the future. It helps you be intentional with your plans and capture opportunities that could be gone forever. It’s like my family having a surprise 60th birthday party for me. Maryann had thought it was too late, but David spurred her on by saying, “Dad’s only going to be 60 once!” By the way, 60 is the new 40, so no worries … And when someone says 60, I hear “sexy.” So it is either going to be a great year or I need a hearing check.
VISION NEEDS ACTION, AND ACTION REQUIRES A PLAN.
Educating young people about their finances is a passion of mine. That’s why, in our last cover, I focused on habits. In this edition, we can pair that discussion with this simple exercise. If you're going to own a home at 30, finish having kids at 35, own a vacation property at 40, send your kids off to college at 50, and travel the world at 60, you need to understand not just the money that’s required to accomplish that, but also the habits required. How much money are you going to need to travel the world, and how are you going to save it? Looking forward at events you know will happen can sharpen your clarity. I was speaking with a
-Dave Shepherd
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KEEP YOUR GOALS S.M.A.R.T. A GUIDE TO PICKING A POST-CAREER HOBBY NEW AND REDISCOVERED PASSIONS IN LATER LIFE ARE YOU WRITING YOUR GOALS DOWN?
Forbes reported a study done on Harvard MBA students that has significant implications for goal setting. The results stated that 3 percent of students wrote their goals down, 13 percent had goals but never wrote them down, and 84 percent had no goals at all. When the study followed up with the students 10 years later, it found that the 3 percent who wrote their goals down made an average of 10 times as much money as the other 97 percent of the class combined. Are you ready to write some goals down? Start with the S.M.A.R.T. Method. SPECIFIC Goals need to be specific and contain details that pertain exactly to what it is you want to achieve. MEASURABLE How are you going to define whether or not you’re making progress toward your goal, and how will you know when you’ve achieved it? ATTAINABLE There are big, hairy, audacious goals, and there are S.M.A.R.T. goals. Your objective needs to be within the realm of possibility. RELEVANT While it may seem like a no-brainer, your goal needs to pertain to your life and be relevant to your mission. TIME-SENSITIVE When do you plan on achieving your goal? And what is a reasonable timeline to make sure you are set up for success? Most importantly, when you finally achieve your goals, celebrate your new milestone. If it’s a small goal, match that with a small reward. If you’ve accomplished a huge goal, make sure to reward yourself accordingly. There’s a difference between a task and a goal. Tasks are required; goals are for people who want to drive their lives forward. Start writing yours down with the S.M.A.R.T. method today. Reach out to us if you need help setting and reaching your financial goals.
Aside from financial concerns, the No. 1 question that most impending and recent retirees struggle to answer is how they will fill up all their time. While spending time with family and relaxing are priorities for most folks entering the post-career chapter of their lives, these aren’t enough to fill up the bulk of your newly acquired free time. Cultivating a hobby is a great use of your time at any age, but especially during retirement. As Dick Van Dyke once said, “To me, retirement means doing what you have fun doing.” Here are three questions to help you discover a hobby that’s right for you. DO YOU HAVE A DORMANT PASSION? Work has a tendency to put our other interests on the back burner. Maybe you painted for pleasure during college but put the canvas away to focus on your career. Perhaps you were once a chess fanatic, and today you find your board gathering dust from lack of use. Now is the Discovering new hobbies is just as rewarding as rekindling old ones. Have you ever heard about a pastime and thought, “I’d love to do that, if only I had the time”? Former NFL quarterback Drew Bledsoe opened a winery after retiring from football. While you probably don’t have the financial resources of a professional athlete, there’s nothing stopping you from pursuing a newfound passion at the same velocity as the footballs Bledsoe threw. IS THERE A CAUSE YOU WANT TO SUPPORT? Volunteer work can be incredibly fulfilling, especially when you have the time and energy to devote to it. Many older adults find that giving back to the community adds meaning and purpose to their lives. The best way to figure out how to donate your time is to think about a cause dear to your heart. From there, find a reputable organization that supports said cause, and see what you can do to help. Retirement is the perfect opportunity to throw yourself head-first into something you’re passionate about. So what are you waiting for? perfect time to rediscover those once-beloved activities. WHAT HAVE YOU ALWAYS WANTED TO DO?
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HOW A ‘ SUPER HAPPY FUN DAY’
COULD CHANGE YOUR PERSPECTIVE
When was the last time you did something really fun? When I had my 60th birthday party, I reflected on what it was like to reach that landmark, and I realized something: My memories are mostly of the fun times with family and friends — times when we laughed or were doing fun things together. The difficulties and adversities have mostly faded away and look smaller from a distance. Many medical professionals agree that there is scientific evidence of laughter being the best medicine. To be happy overall in life, it is recommended that you have a healthy balance of positive and negative experiences. A 5-to-1 ratio of fun to negative is a great baseline to be happy, even though we have to deal with tough situations too. TAKE A BREAK!
Life’s adversities/negatives happen, but what if you deliberately made fun a priority and planned for it? My friend Joe Polish talks about setting up a “Super Happy Fun Day” where you take time to plan out a purposeful day centered on having a great time. If you think about it, what could a whole day of fun with the people you enjoy the most do for you? What would you do on your day? Another friend and his wife, who work together, have a “Friday night dance party” where they turn up the music in their house and dance like nobody's watching. When I deal with a negative situation, I start Googling funny videos, one-line jokes, upbeat
music, or other pleasant or fun content to turn around my thinking. I just recommended this to someone as an alternative to cleaning the whole house when they are stressed and worried till 3 a.m. Having a mindset of fun and laughing is contagious and makes you and others feel better. One day in church, my son David tried to stop his young children from moving around so much and joyfully singing and dancing when the music was playing. I asked him about it later, and he said, “I don’t want them to disturb everyone.” I said, “David, all the adults are smiling and watching them. They wish they
could still act that way in public.” We should all be that way more.
Inspired by Food Network
Panzanella LATE-SUMMER
INGREDIENTS • 1 small loaf French bread, cut into 1-inch cubes (6 cups) • 3 tablespoons extra-virgin olive oil • 2 large tomatoes, cubed • 2 red bell peppers, seeded and cubed
• 1/2 red onion, thinly sliced • 1 cucumber, sliced into rounds • 20 basil leaves, chopped
• Salt, to taste • Vinaigrette
DIRECTIONS 1. In a large sauté pan, set to medium-low heat and add olive oil. Add bread and 1 teaspoon salt, and toss often for 10 minutes or until toasted. 2. In a large bowl, mix vegetables and herbs. Toss in bread and your favorite vinaigrette and mix again. 3. Serve immediately or let sit 30 minutes to allow the flavors to meld together. Investment advice is offered through Shepherd Wealth Group, a Registered Investment Advisor doing business as Shepherd Wealth & Retirement. The firm only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. Registration as an investment advisor does not constitute an endorsement of the firm by securities regulators, nor does it indicate that the advisor has attained a particular level of skill or ability. Content should not be construed as personalized investment advice or as an offer to buy or sell, or a solicitation of any offer to buy or sell any securities mentioned. Certain content was prepared by a freelance journalist.
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How We Pair Your Life’s Plan to Action
What Have You Always Wanted to Do? S.M.A.R.T. Goals Are Instrumental to Success When Was the Last Time You Had Fun? Late-Summer Panzanella
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Get a Head Start on Next Spring’s Garden
Prepare Your Garden
AUTUMN STEPS FOR A BETTER SPRING GARDEN
W ith fall just ahead, it's a good time to think about your spring garden. For a beautiful garden next year, begin preparing this fall. Here are a few ways to get a head start! PLANTING BULBS If you want beautiful flowers in April, you should start planting bulbs now. Many flower bulbs need to be in the ground before winter settles in; this helps activate the bulbs’ biochemical process that allows them to bloom. Getting the bulbs into the ground before it freezes allows their roots to grow deep enough to protect them from the biting winter weather. Among the flower bulbs you should plant soon are tulips, daffodils, irises, and hyacinths. CHICKEN WIRE After you’ve planted your bulbs, there’s a risk that uninvited guests will dig them up. There are a few ways you can ensure that your bulbs remain undisturbed throughout the fall. One way is to place chicken wire over your bulbs after they’ve been
planted. This keeps rodents from digging them up and allows the plants to grow through the gaps in the wire. KEEP YOUR GARDEN TIDY Once you’ve harvested your best fruits and vegetables, go back through and harvest the rest, even if you don’t plan to eat them. Make sure your garden is clear of old vegetables, fallen leaves, and weeds. Leaving decaying plants in or on top of the ground can spread diseases into the soil and attract unwanted pests to your garden. HEALTHY SOIL Pulling up weeds and all of your vegetables can help keep the earth free from rotting plants, but there are other steps you can take to ensure that your soil stays full of nutrients. Pick up a kit to test the pH levels of your soil. Most gardens thrive in soil with a pH of 6.5. Add compost to your soil supply now to give it time to break down during the winter months.
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