I grew up in a house that my father built.  He and my grandfather cleared the land, dug the basement, laid the blocks and framed the walls.  He did the plumbing (he was a plumber by trade), the electrical, the finish carpentry, the painting and pretty much every other thing that goes into building a house.  That was in the late 1970s.  I lived in that house until I left for college 33 years ago.  All of my memories from childhood are in and around that house.

A few days ago they tore it down to extend the runway of a nearby airport.  I’m not overly sentimental about it, but it’s always a little sad to see people, places or things that were an integral part of your life disappear.  But it’s also a good reminder that our time here is finite.  That people, places and things will pass away.  That our opportunities are limited.  That we shouldn’t wait.  The whole situation reminds me of the Robert Frost poem “Nothing Gold Can Stay.”

Nature’s first green is gold,
Her hardest hue to hold.
Her early leaf’s a flower;
But only so an hour.
Then leaf subsides to leaf.
So Eden sank to grief,
So dawn goes down to day.
Nothing gold can stay.

Time, like the seasons, passes quickly.  You only have a certain number of days left and each new day subtracts from fewer and fewer.  Use those days – your life – wisely.  

Be intentional,

Joe

The post Nothing gold can stay: A brief reflection on losing my childhood home appeared first on intentionalretirement.com.

Research shows that most people have abandoned their New Year’s Resolutions by now.  I’m even worse.  I haven’t made mine yet!  Life has been so busy the last few months, I haven’t yet finished my typical annual review and set my goals for the year.  So I’m doing that now.  And as I do, I’ve been reflecting on a few stories I heard this past year that illustrate the power of small wins and how they can help me (and you) when it comes to things like setting goals, becoming the person you want to be and retiring now with version 1.0 and then iterating and improving.

Story 1: When it comes to service at their theme parks, Disney very rarely focuses on the grand gesture. Instead, they do a whole bunch of little things right.  And they do those little things so consistently and reliably, that they end up translating into a huge thing for their customers.

Story 2: Open AI created the artificial intelligence software Chat GPT.  Each new version of the software has seen a huge leap in capability.  When asked about this, Sam Altman (the CEO) said that none of their giant leaps was the result of a big technological breakthrough.  Instead, they focus on making small tweaks and improvements to their current version and those changes eventually come together in a “sum is greater than their parts” sort of way that results in a huge leap in overall capability.

It’s tempting in life to set the huge goal or make the big change.  Sometimes that’s helpful if it allows you to break free from routine or create a “burn the ships” mentality.  But those types of goals also have a huge abandonment rate because they require so much effort, consistency, willpower and commitment.  So consider instead, the option of setting a small goal or focusing on tiny improvements.  The Japanese have a word for this: Kaizen.  It means continuous improvement.  You just try to get a little better today than you were yesterday.  You make tiny improvements over months and years and, over time, those add up to huge change.  

So yes, I’ll probably make 1 or 2 big goals this year, but mostly I’m just going to focus on getting a little better each day.  At work.  In my marriage.  As a dad.  In my faith.  With my friends.  With my health.  How about you?  How is 2024 going so far?  If you want it to be a big year, think small.  Don’t underestimate the power of small wins.

Be intentional,

Joe

Quick personal update:  A few of you have checked in with me because I haven’t written much lately.  No worries!  Everything is great.  Last year just got particularly busy (e.g. sending our daughter to college, moving, transitioning into our empty nest phase, running a growing business, traveling, etc.) and my writing schedule suffered a bit.  But I’m back at the keyboard, so expect more soon.  Small wins.  🙂

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We dropped our daughter off at college (she’s been doing great) and that means that my wife and I are now officially empty nesters.  In my last post, I discussed the emotions that accompany major life transitions like empty nesting or retirement.  Today let’s look at some of the other challenges you can expect when moving into a new phase of life as well as how to overcome those challenges and make the most out of your new chapter.

Financial Adjustments: Transitions usually impact your finances in a variety of ways.  Expect the most change as you move into retirement, because that transition affects both income and spending.  You give up your regular paycheck while also having to figure out your new budget and spending habits.  Throw in decisions regarding investments, pensions and Social Security benefits and you can see why moving into retirement usually means major adjustments to your finances.

Social Changes: Moving into a new phase of life usually brings changes to your social network.  The absence of daily interactions with coworkers or the social circle that comes with a particular phase of life (such as parenting) may lead to a sense of isolation. Building new social connections and finding meaningful social activities can be important for maintaining a fulfilling social life in retirement.

Time Management: It’s not unusual for people to struggle to use their time effectively and find fulfilling activities as they enter a new phase in life.  Part of that is just getting used to new schedules and routines.  Part of that is filling the void left by things that were removed (e.g. work, interactions, commitments, etc.).

Health and Well-being: Because time marches forward, we’re a bit older with each new phase of life.  That generally means a decline in your health and physical abilities.  But it can also mean less stress and more time for things like exercise.  Use the extra time to stay active and to focus on your physical and mental well-being.  

Role Adjustments: Retirement often involves a shift in roles and responsibilities within your family.  For instance, transitioning from parent to grandparent or assuming a caregiving role with aging parents.  These role adjustments can bring both rewards and challenges as everyone adapts to new family dynamics.

Personal Identity: For many, a significant part of their identity is tied to their profession or the roles they played as a parent or caregiver.  Retirees may need to explore new aspects of themselves, find new sources of fulfillment and redefine their sense of purpose.

Planning for the Future: Reaching retirement can feel like you’ve arrived, but there is still planning that needs to be done.  This may involve estate planning, making healthcare decisions and ensuring financial security for the later stages of life. Navigating these complex decisions can be an additional challenge during the transition.

So those are some challenges we face as we move to a new phase in life.  How can we overcome those challenges and make the most of the new opportunity?

Set Clear Goals: Take time to define your goals and aspirations for this new phase of life. Identify what you want to achieve, experience or learn.  And, if married, don’t forget to make sure you’re on the same page with your spouse.  Setting clear goals can give you direction and purpose as you navigate the transition.

Plan Financially: Evaluate your financial situation and create a realistic budget based on your retirement income.  Meet with your financial advisor to ensure your financial resources align with your goals.  Financial security will provide peace of mind and enable you to make the most of your retirement.

Pursue Interests, Activities and Hobbies: One of my 8 Habits of Successful Retirees is to retire to something, not from something.  Have a plan for what you want to do during retirement.  Engaging in activities you are passionate about can help you stay mentally stimulated, socially connected and provide a sense of purpose in your new phase of life.

Stay Active and Maintain Your Health: Prioritize your physical and mental well-being. Adopt a healthy lifestyle by engaging in regular exercise, eating nutritious meals and getting enough sleep.  And stay socially connected by cultivating friendships, joining clubs or organizations and participating in activities in your community.

Travel and Explore: Take advantage of the flexibility and time that retirement offers to explore new places and try new things.  Travel can broaden your horizons, provide new experiences and create great memories with friends and family.

Volunteer: Consider volunteering your time and talents at organizations or causes that align with your values. Contributing to your community can give you a sense of purpose, help you stay engaged and make a positive impact on the lives of others.

Learn and Grow: Embrace lifelong learning and personal development. Enroll in a class or workshop that interests you.  Pick up a new hobby that sounds fun.  Learning and doing new things can keep your mind sharp, help you meet new people and generally make life more fulfilling.  

Cultivate Relationships: Nurture your relationships with family, friends and loved ones. Be intentional about spending time with them and creating new shared experiences. Additionally, seek out new social connections by joining clubs, groups or activities where you can meet like-minded individuals.

Be Flexible: Be open to change and embrace the flexibility that retirement offers. Stay open-minded and willing to explore new possibilities.  Take every opportunity to understand yourself better and make adjustments as necessary.  Adaptability and a positive attitude can help you navigate any challenges that arise and make the most of every opportunity.  

Be Intentional,

Joe

The post Navigating Life’s Transitions (Part 2): Understanding and overcoming challenges so you can make the most of your next chapter. appeared first on intentionalretirement.com.

Our daughter graduated from high school a few months ago and is heading off to college soon.  Needless to say, we’ve been filling our long summer days with fun and making the most of the time before she leaves (sorry for my reduced writing schedule!).  She’s our only child, so that significant milestone in her life – adulthood – is also a significant milestone for my wife and I – empty nesting.  With our whole household moving on to an exciting new phase, I’ve had more time than usual to think about, experience and better understand transitions.  And since retirement, at its core, is about transition, I wanted to share a few thoughts.  Today I’ll talk about the feelings and emotions that come along with transitions.  And in future posts, I’ll talk about changes to be ready for as well as ways to make the most of any new phase in life.

Feelings and Emotions

When going through major life transitions like retirement or empty nesting, you’ll likely experience a wide range of emotions.  That’s totally normal.  Some that I’ve experienced or seen clients experience include:

Loss/Sadness: Major transitions often mark the end of a significant chapter in your life, and it’s natural to feel a sense of loss or sadness.  The absence of familiar routines, roles or relationships can leave you feeling sad or nostalgic.  I’m proud of and excited for our daughter, but I’d be lying if I said I wasn’t feeling a bit melancholy about seeing her leave. 

Excitement/Enthusiasm: While it’s normal to marvel at how quickly time has passed and mourn what gets left behind, it’s also common to experience excitement or enthusiasm about what lies ahead.  Embracing new possibilities, pursuing personal interests, exploring different paths and connecting (or reconnecting) with those important to you can evoke a sense of adventure and anticipation.

Fulfillment/Accomplishment: Major life transitions can provide an opportunity for reflection and a sense of achievement.  You look back on certain accomplishments or milestones with a feeling of fulfillment and satisfaction.  You reflect on the positive impact you’ve had as a parent or in your career.  You think about all the ways you’ve changed, grown and evolved.  Sure, you’ll likely have a regret or two.  Who doesn’t.  But the yin to that yang is typically the satisfaction of having run a good race.

Uncertainty: Life transitions almost always contain an element of uncertainty.  When faced with a major change, it’s natural to feel unsure about your future, your purpose or how to structure your time. That uncertainty can lead to feelings of anxiety or unease.  It usually passes fairly quickly, however, as you move forward into your new daily routine.

Grief: Transitioning from a busy, active phase of life to a quieter or less structured one can bring about a grieving process.  Some may mourn the loss of time, their previous identity or the life they had grown accustomed to.

Relief: On the other hand, some may experience a sense of relief during major life transitions.  The stress, burdens or responsibilities associated with raising children or maintaining a demanding career can ease a bit, allowing for a newfound sense of freedom and relaxation.

Loneliness: The absence of daily interactions with children or colleagues can contribute to feelings of loneliness.  Adjusting to a quieter home or a less socially active lifestyle may require finding new ways to build connections and create a sense of community. 

Identity shift:  Life transitions often prompt a reevaluation of one’s identity.  Empty nesters or retirees may grapple with questions about who they are beyond their parental or professional roles.  This process of identity shift can be both challenging and liberating and it’s why it’s so important to retire to something rather than just from something.

Of course, emotions can vary significantly from person to person.  Some of the above are hitting me hard and others aren’t registering at all.  There are things you can do to make the transition easier and get the most out of your new circumstances.  I’ll talk about those next time.  Until then…

Be Intentional,

Joe

The post Navigating Life’s Transitions: Understanding the emotions that accompany change so you can make the most of your next chapter. appeared first on intentionalretirement.com.

Psychologist Amos Tversky once said: “You waste years by not being able to waste hours.”  His quote was part of a broader conversation he was having about doing good research, but I think you can apply the sentiment to retirement as well.  Your ideal life doesn’t just happen. It takes a bit of work. Because of that, we procrastinate and, by default, end up choosing long-term dissatisfaction over short-term effort or discomfort. In short, we waste years instead of hours.

Some examples?  Not taking the time to figure out what you really want out of life and making sure you’re on a path that is taking you there.  Not having an uncomfortable conversation to end a toxic relationship.  Not getting that knee replacement surgery your doctor said you need.  Not creating that detailed financial plan with your adviser.  Not leaving a job you hate for one you enjoy.  Not starting that new hobby because it will take time to learn and being a beginner is embarrassing.  Not getting on the same page with your spouse regarding retirement plans.

In each of those situations, you could endure some short-term pain in exchange for long-term gain.  In the investment world, we call that asymmetric upside.  Big potential profit.  Small potential loss.  

Sometimes all that’s required is 20 seconds of bravery.  Sometimes it requires a bit of experimentation or iteration.  Sometimes it requires spending a few hours/days/weeks thinking and planning.  Whatever the short-term cost, pay it.  Don’t waste years of your life because you’re unwilling to “waste” a few hours setting your course.

Be Intentional,

Joe

The post Waste hours, not years appeared first on intentionalretirement.com.

I was listening to a podcast* recently where the guest told a story about a pottery teacher.  At the beginning of the semester, he divided the class into two groups.  His instructions to the first group were to make the absolute best pot they could make.  They only had to hand in one pot, but it had to be perfect.  His instructions to the second group were to make as many pots as possible.  Their pots didn’t have to be perfect, but they needed to make a lot of them.  At the end of the semester, he evaluated everyone’s work.  Guess which group made the best pots?  You guessed it.  Group 2.  The group focused on quantity over quality; experimentation over perfection.

That story struck a chord, because it perfectly illustrates something that I talk about fairly regularly here at Intentional Retirement: Iteration is the key to creating your ideal life and retirement.  

Experiment.  Adjust.  Improve.  Experiment.  Adjust.  Improve.  

Keep that in mind as you start the New Year.  A little real world experimentation is usually better than grandiose dreams on the drawing board.  

Be Intentional,

Joe

P.S. Just in case you want a few more articles to drive the point home:

• Do I really want this or do I just think I want it?
• You don’t find yourself, you create yourself.
• How to retire today, regardless of your age.
• The importance of more at bats.
• The problem with delayed gratification.

* The podcast mentioned above is Invest Like the Best with Patrick O’Shaughnessy

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I enjoy poetry because it uses an economy of words to convey an important message or feeling.  I recently stumbled across a YouTube channel run by a cowboy named Dewayne Noel and I watched a few of his videos.  I don’t have horse, so I can’t relate to his vocation specific videos, but a good many of his videos are just simple life advice delivered in a thoughtful, straightforward manner.  He started a recent video smoking his pipe and reciting the poem below, which I can only assume that he wrote because a search for it on Google returned zero results.

Am I inside looking out
Or outside looking in?
And can I help but doubt,
That I’m ever going to win,
If I cannot tell whether
I am the spectator or the sport?

This world is very fast,
But I am frightful slow.
Yet I hold onto the past
While in my heart I know
That the past gets left behind
With any fool bound to it.

But my ways are still my ways.
Cause whose else can they be?
So I will weave today
On a loom I built for me
A cloth both course and rustic
With a pattern vaguely primeval.

My Bullet Point Takeaways:

• Let the past go, especially this time of year.  Forgive.  Mend fences.  Or plain just let it go and move on.
• You don’t have to live your life the way everyone expects you to.  
• You have agency.  Don’t just let life happen.  Figure out what you really want out of life and use every tool available to make that happen.  Yes, you’re busy, but carve out a few hours between now and year-end to sit with your thoughts, reflect on your past and plan for your future.  Then start weaving.
• Your path doesn’t need to be perfect.  The cowboy poet’s pattern was “course and rustic.”  But it was his.

Just a few thoughts that hopefully offer a little encouragement or inspiration as you reflect on this past year and start planning for the next.  

Be Intentional,

Joe

The post So I will weave today on a loom I built for me appeared first on intentionalretirement.com.

The year has flown by.  It’s hard to believe, but the holidays are just around the corner.  If you’re looking for a unique experience or just a great way to get in the Christmas spirit, consider planning a trip to a Christmas market.  Here’s how to do it.  

What are Christmas markets?  Christmas markets originated in Europe during the Middle Ages as a way to usher in Advent and the Christmas season.  The tradition has since made its way to many US cities.  They are generally held in a city’s town square and feature festive decorations and a number of open-air stalls that offer food, drinks and unique seasonal gifts or souvenirs.  In addition, many markets have things like music, dancing and ice skating to help you get into the Christmas spirit.

Why is now a good time?  Yes, it has been a rough year in the financial markets and budgets are tighter, but there are several reasons why now might be a good time to plan a visit to a Christmas market.  First, if your city (or a nearby city) is putting on a market, a visit can be an inexpensive experience.  Admission is usually free, so you can enjoy the sights and sounds and browse all you want without ever reaching for your wallet.  Unless, of course, you find the perfect gift or treat.  And if visiting one of the European markets is an option, the dollar is the strongest it has been in decades against the euro and the pound, so your money will go a lot further than in years past. Also helping: airfares have dropped significantly from their summer peak and winter is generally the slow season in Europe so prices are lower than during the peak season.  Bottom line, travel timing is never perfect, but before dismissing a trip out of hand, think about what options might work.

How do I plan the trip?  I think a Christmas market trip can be one of the easiest trips to plan because they’re usually held in the town square of a major city.  That means lots of flight and hotel options and you can skip the rental car and just use public transportation.  Once you decide which market you want to visit (see some options below), all you need to do is book a flight and a room.  And it’s even easier if you’re going to a local market or one within driving distance.  Just pick a day and show up.  For more info on trip planning, see my article A Practical Guide to Planning and Packing for Trips.

What are some of the main markets in the US?  Below (in no particular order) are a few of the main markets in the US with links to their official websites.  For more cities with markets just Google “US Christmas Markets.”  And don’t forget to check for markets in your hometown.  No flight or hotel required.

• Chicago, IL: November 18 – December 24
• Bethlehem, PA: November 18 – December 18
• Washington, DC: November 18 – December 23
• New York, NY: November 17 – December 24
• San Francisco, CA: November 19 – December 18
• Cambria, CA: November 25 – December 23
• Arlington, TX: November 25 – December 23
• Austin, TX: December 17 – December 23
• Denver, CO: November 18 – December 23
• St. Paul, MN: November 25 – December 18
• Atlanta, GA: November 25 – December 24

What are the main markets in Europe?  Below (in no particular order) are a few of the main markets in Europe.  For more cities with markets just Google “European Christmas Markets.” 

Note: Many of the European Christmas Markets don’t have their own websites so here is a link to a Times of London article that contains info on the markets listed below as well as many more. 

• Vienna, Austria: November 19 – December 26
• Budapest, Hungary: November 18 – January 1
• Cologne, Germany: November 21 – December 23
• Brussels, Belgium: November 25 – January 1
• Bruges, Belgium: November 25 – January 8
• Strasbourg, France: November 25 – December 26
• Gothenburg, Sweden: November 19 – December 30
• Copenhagen, Denmark: November 18 – January 1
• Basel, Switzerland: November 24 – December 23
• Edinburgh, Scotland: November 19 – January 3
• Seville, Spain: December 5 – January 5

Just imagine.  With a little planning, six weeks from now you could be sipping hot cider as you stroll through the market in Denver or buying a pair of hand knit socks from a local vendor in Belgium.  Where would you go if you had the chance?  Who would you take?  Why not give it a try?  Do some research, make a plan and go.  After all, life is short, so…

Be Intentional,

Joe 

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If you’re at all familiar with investing, you’ve probably heard of the rule of 72.  Basically, if you divide 72 by the rate of return you get on your investments, the result will tell you roughly how long it will take to double your money.  For example, if you’re getting a 6% rate of return, your investments will double in approximately 12 years (72 / 6 = 12).  If you get a 10% rate of return, your investments will double in about 7 years.

Just like investment returns can grow your money, inflation can shrink the purchasing power of your money. So in a high inflationary environment like we’re in now, it’s good to pay attention to how quickly inflation can erode the value of your money.  To see the effect, you can use a modified Rule of 72.  Think of it as the Reverse Rule of 72.  Instead of dividing 72 by your rate of return, divide it by the rate of inflation.  If inflation is 2%, like it was until recently, the purchasing power of your money will be cut in half after 36 years.  But if inflation is 8%, like it is now, then the purchasing power of your money will be cut in half in 9 years.  That means in 9 years, you’ll need twice as much income to buy the same goods and services that your current income is buying today.  When you look at it that way, you understand how important it is to get inflation under control and why the Fed is willing to raise rates and risk a recession to do so.  

That tug of war between the Fed and inflation has been roiling markets all year.  When markets are volatile, it’s natural to look for ways to reduce risk.  Nothing wrong with that.  Managing your risk and allocation is important.  Just don’t forget about the risk of inflation.  It’s less obvious in the short term, but it can often do more damage in the long-term.  Moving your portfolio to cash can feel safe, but safe can be risky if you trade long-term purchasing power for short-term stability.  By investing in a well-balanced portfolio that is designed to keep pace with inflation, you can help improve the odds that your money not only lasts for your lifetime, but also provides you with the income necessary for security and independence during retirement.  But it also means you’ll likely need to ride out volatile markets every now and then.

Be Intentional,

Joe

The post Why inflation is so dangerous appeared first on intentionalretirement.com.

How long do you have until retirement?  Twenty years?  Five years?  Already there?  With your answer in mind, read this quote by Shane Parrish:

“The longer the time frame for results, the less you need intensity and the more you need consistency.”

In other words, if you have a long time to go until retirement, then consistent, daily progress is important.  It’s about little wins that get you closer to your goal.  It’s about harnessing the power of compounding for an exponentially richer life.  And not just financial compounding, but lifestyle compounding in areas like relationships, health, hobbies, travel and purpose.  

But if you have a short time to go until retirement, then intensity is the name of the game.  Especially if you’re behind where you need to be.  You can’t afford to play the long game.  You need to take bold, sometimes drastic action.  One of our 8 Habits of Successful Retirees is to “Live with a sense of urgency.”  This is true for all of us in that we want to make the most of our time.  But it’s especially true for those who have a short runway and need to make a lot of progress.

So how about you?  Is it time for consistency or intensity?  Either way, each day subtracts from fewer and fewer, so don’t wait. 

Be Intentional,

Joe

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