The Star: March 22, 2018

etirement planning
3
These days, most retiring baby boomers can expect
to be “in retirement” for at least 20 or 25 years – so it’s
not surprising that this is a topic now attracting a lot of
interest. Recently, local firm Cambridge Partners joined
forces with a world authority on retirement lifestyle
planning, Barry LaValley, to produce a New Zealand
version of his internationally acclaimed book So you
think you’re ready to retire?.
Barry’s first visit here last year attracted enormous
attention from both the public and national media.
He was recently back in Christchurch to run a series
of seminars aimed at anyone who is within 10 years of
retirement, or who has already retired. These proved
so popular that several additional sessions had to be
scheduled to meet demand.
Forward 50 sat down with Barry to find out a bit more
about his thoughts on this ‘third phase’ of life.
What makes for a happy retirement – is
it just having sufficient funds, or is there
more to consider?
When we talk with pre-retirees the majority say that
they believe the key to happiness is having enough money
to enjoy their lives. But happiness has nothing to do with
ageing or money, as many studies have shown.
When we talk with those already retired, they place
more importance on good relationships and good health.
Money becomes less important with retirees compared
to other aspects of their lives, such as nurturing
relationships and engaging in fulfilling activities.
Achieving your goals will certainly help you live a
happy life. However, happiness itself is not a goal; it is a
precondition to living the life that you want.
How can people successfully transition
from full-time work to retirement –
does reducing hours or taking a parttime
job help?
If it’s possible for you to do this in your area of work
then this is a really good idea, not just from a financial
point of view but also from an emotional one. Some
people find the opportunity in retirement to pass the
knowledge gained from many years in their trade or
profession onto others as a consultant, trainer or advisor.
Others take a more radical path and move into a totally
unrelated industry. For instance, I met a man at one of
my seminars who had spent several decades as a hardworking
professional. Then in retirement he started up
his own small winery. Although he was actually working
harder than ever before, it didn’t feel like work to him at
all because he enjoyed it so much!
Ironically, I often encounter people who have started
looking for work again a couple of years into their
retirement. They have had a great ‘honeymoon period’
travelling, playing golf etc. in those first years, but then
reach a point where they
are starting to look for
something more fulfillilng
to incorporate into their
days.
How important
are hobbies and
sporting activities
to enjoying
retirement?
PLANNINg foR
REtIREmENt -
an expert offers
some advice
These are very important!
Time seems to be of the essence
when you retire and what you do
with that time now becomes a decision
that is more yours then in the past, when so
many other demands, particularly around work and
family, ate into your time. Yet, there is a big difference
between “time-filling” activities and “fulfilling” activities.
A lot of people enter retirement without ever thinking
carefully about how they will spend their time. Others
think they will fill their time up with activities they can
currently only do occasionally – playing more golf is
a good example of this. But if you play golf everyday,
sooner or later it’s going to start feeling like a job too! As
wth so many things in life, balance is the key.
How do you make your investments last,
so you enjoy retirement right till the end
of life?
This is where a quality financal advisor can really play
a huge role. An indepndent, fee-only company can sit
down with you to find out what sort of retirement you
would like, which will help dictate the level of income
you need to live on. For instance, do you want to do a lot
of international travel or stick closer to home? Are you
happy to drive the same car for many years, or do you
want to upgrade regularly?
Allowances can be made for large, one-off expenses
such as a major trip or family wedding, and other
elements can also be factored in. From this, interactive
cash flow modelling can be completed and a very clear
picture will emerge. One of the positive aspects of taking
the time to put together a plan is that people often find
they don’t need as much as they thought (but not always!)
How far out should you start planning
for retirement?
This is something which should be done long before
retirement, so I would always suggest that people
start thinking and talking about their retirement well
in advance, even as early as your 30s! Of course, at a
younger age it doesn’t need to be more than an occasional
conversation as part of your overall financial planning,
but the closer you get to your retirement, the more often
these conversations need to happen.
Is there one piece of advice
you would give to all those
planning retirement in
the near future?
Hard to pin it down to only one
thing but I think the main things
are: start thinking about your
retirement sooner rather than later,
share your plans with your
partner and family,
and get the help
of a good
financial
advisor.
Barry
LaValley
gIvEAwAY
Forward 50 has
three copies of
Barray LaValley’s
book So you
think you’re
ready to retire?
to give away.
To enter the draw, email
Giveaways@starmedia.kiwi with
Retirement Book in the subject
line. Please include your name,
postal address and a daytime
contact number. Entries close
noon, Thursday, March 29, 2018.
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