Life After Work - Will I Be "OK"?

  According to a 2024 MassMutual survey, two out of every three retirees report they are either much happier or somewhat happier in retirement. ( 2024_massmutual_retirement_happiness_study.pdf ).   That should be very reassuring for anyone that is heading towards retirement.   But that also means that one out of every three retirees report that they are either just as happy, somewhat less happy, or much less happy.   The study also found that those that are happier tend to spend more time with family and friends, exercising, travel and pursuing hobbies or interests.   I’m guessing this doesn’t surprise anyone.   I'm sure every retiree at first wonders how they will fill their day and maintain relationships.     I mentioned in post #3 ( Focusing on What is Really Important ) that retirement allowed me to play full time in the St. Pete Half-Century Club.   You talk about a time filler.   Yesterday we concluded our 60-game season. ...

  When Social Security was signed into law in 1935, the age of sixty-five was set as the full retirement age.   Not long after, pension plans began to use sixty-five as the age at which benefits would be paid.   Following this trend, Medicare allowed enrollment at 65 as well.   Consequently, we now routinely think of sixty-five as the age at which people should retire.   But that’s not what happens in reality.   Studies have routinely concluded that the actual average retirement age is 61-62 years old - and typically not because people were financially able to retire.   A 2025 AARP study found that more than 1 in 3 people retired not out of choice, but because they had to.   Either for health reasons, family support reasons or because they lost their job ( How Older Americans View the Labor Market ).   Only 1 out of 5 retired because they had enough money to retire. The message here is that while you might be planning for retirement at th...

  To say the stock market has been volatile lately would be an understatement.    Yesterday , the S&P 500 was down almost 150 points in the first 30 minutes only to end the day with a gain of 56 points.   Despite these daily swings, as you can see from the chart below, the market has been relatively flat since early October. Source: Yahoo Finance This type of volatility can make any investor nervous – especially retirees.   I’ve had numerous conversations with my retired former colleagues since I retired last July.   And one thing that is almost universal is that hitting a home run is no longer the goal for our retirement portfolio.   The goal is now to consistently hit singles and doubles.   The fear of seeing our retirement nest egg go down significantly greatly outweighs the desire to see it increase significantly.   So, the question becomes, how do we achieve this goal in an investing environment with such uncertainty and almost...

  This past weekend I had dinner with a former business associate.   Amongst other things, he asked me what I missed now that I’m retired.   That question gave me pause.   When you retire, you mostly focus on the things you now have time to do that you couldn’t do while working.   I hadn’t really thought much about what I missed about working. One answer did come immediately to mind.   I missed the people I worked with.   Many of them became, and continue to be, good friends.   While I still see them occasionally, it’s just not the same.   And it’s more than just a friendship.   We worked together towards common goals.   We were a team and we had each other’s backs.   We took great pride in the service we provided to our clients each day.   And we all benefited from our success.   We were in it together.   That’s virtually impossible to replace once you retire.   I get some of that same feeling in my sof...