THE TRADITIONAL LARGE NEST-EGG STRATEGY:
In this strategy the client builds a
very large pool of savings – usually several million dollars – and then retires completely. This is the traditional
strategy that has been encouraged by the majority of large financial service companies. Obviously, this strategy
results in building a very large investment account that can be managed by the companies that promote this strategy.
However, there is a very significant downside to this strategy: it often puts great pressure on individuals to
work at high pressure jobs that they do not enjoy. In addition, people often find complete retirement to be a disappointing
experience. They discover that they need something challenging to do in their retirement! |
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THE MULTIPLE RETIREMENTS STRATEGY:
In this strategy, the client may enjoy
several retirements. The person may “retire” at age 55, age 65 and age 70. This strategy is built on the premise
that adults find great personal satisfaction in doing work they feel is important. And, for many people, their
ability to work efficiently and productively increases with age. They become better and better at matching their
talents and experience with their work. This strategy has a very significant positive impact on long-term financial
planning. Even small amounts of income from part-time work later in life can significantly extend the life of the
investments that need to be drawn down during complete retirement. However, this strategy does not work well if
the person is in poor health and cannot work later in life. |
