Groundhog Day—Any Financial Lessons for Retirees?
While I am not a big believer in rodent-based weather forecasting, February 2nd has earned its place in American lore as “Groundhog Day,” and this year it seems that Phil took the easy way out and said we would have a long winter. I don’t think Phil went out on a limb for that!
But Groundhog Day is also the name of a now-classic Bill Murray movie about reliving the same day over and over again until he is able to break that loop by making significant life changes. The movie title has become synonymous with the idea of things not changing unless we do something about it.
And that is what I see as the tie-in to financial issues for those who are now enjoying retirement or preparing to do so. Your financial planning goal until this point has been to squirrel away funds for future use. And yes, sorry about yet another small mammal related pun. But we can take a lesson from these mammals in that they are forced to plan ahead since, without creating that stash of future food, a long winter can prove disastrous. So hopefully you have accomplished that goal and now have the means for a successful retirement.
But here is the area where change is likely needed to be truly successful. You are no longer in a savings mode, but rather in a spending one, using your treasure for life’s enjoyment in your retirement. But you may be wondering whether or not you have enough stashed away for what could be a long period in retirement. And without a good answer to that question you may, in fact, substantially underspend and leave behind far more than you anticipated to your family, charities, or others. You may have regrets later in life about missed opportunities because you were concerned about running short. Or, for some of you, the opposite may be the case, where you overestimate how long your own stash will last and take risks that could cause problems in the future. Neither of these are desirable outcomes.
The good news is that you can take action and make the changes that can impact your 0wn outcome. You don’t have to live the same Groundhog Day life over and over again, wondering if you will have enough or have too much. An assessment by a financial advisor who has only your best interests in mind can help you in this process. If changes are needed as a result of this assessment you have time to do so and can then feel comfortable and, with luck, achieve and maintain financial independence.
And, along the way, perhaps like Bill Murray’s character you can learn to play the piano, create amazing ice sculptures, and help others in their own life journeys. But, most importantly, you will have a better understanding of your own financial picture and the possibilities open to you. So even if we have a longer winter you can make plans to either embrace it with cold-weather activities or seek out warmer locations without worrying about whether you can afford to do it or not. That financial independence and knowledge empowers you to give Punxsutawney Phil his rightful place in your life—a mere amusing sideshow who prompted a classic movie.
Learn more about what a specialized retirement-focused, fiduciary, fee-only financial advisor can do for you by visiting our website at www.SafeHarbor.financial where you will find information about our cash flow approach to retirement planning, the value of using a Retirement Success Advocate, and a list of our standard projects and fees. Or you can call Safe Harbor at 302-313-6644 or email us at info@safeharborfinancialadvisors.com for an initial no-cost, no-obligation assessment meeting.
