Unretirement Project

Retirement Redefined

Spend Safely: Stanford Study on Retirement Planning Strategies

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sorry not working out of order sign similar to retirement

If only we had a nickel for every article about financing retirement . . . well, let’s just say our retirement would be complete! Retirement planning strategies can vary widely for one important reason – everyone is different. What works well for you might not work at all for me. So, the best we can do is gather information, examine our own situation, and make educated decisions that will benefit us when we retire.

That’s why I was happy to come across the “Viability of the Spend Safely in Retirement Strategy” report on aging and retirement, published last month by the Society of Actuaries’ Committee on Post Retirement Needs and Risks. Don’t let the name of the report scare you away . . . my takeaway from the 80-page report can be broken down into two key areas:

  1. Optimize your Social Security benefits.
  2. Use the IRS Required Minimum Distribution (RMD) rules to generate a retirement “paycheck”.

First, a little background. The study was conducted by Stanford University, where they analyzed 292 possible retirement planning strategies, using eight different metrics to measure how a particular strategy might meet retirement income goals. The results of the study were published in 2017 with the goal of providing a framework for helping people approaching retirement age make important life decisions.

The first key point about optimizing Social Security benefits is pretty straightforward, and you probably know it already – hold off claiming Social Security payments as long as possible. You can draw payments as early as age 62, but there are financial advantages to waiting until the IRS mandated age of 70. That being said, I have been seeing quite a few articles lately extoling the virtues of claiming as early as possible, so do your research to determine what strategy works best for you.

Once you reach the Required Minimum Distribution (RMD) age, that’s when key point number two kicks in and you need to claim your Social Security payment. In addition, the Stanford report suggests that you also start collecting that retirement “paycheck” from your individual retirement account (IRA) or 401(K) account. How much you want to withdraw changes as you age, so make sure you know your IRS requirements. The report recommends at a rate of 3.65% of the total. Remember, you are only required to make the withdrawal – you don’t have to spend it. You have the option to pay income tax on the withdrawal and reinvest all or part of the after-tax proceeds, depending on your financial situation.

My takeaway from this report was that if we plan our financial strategy using this model, then we can use the time between age 62 and 70 to ease into phased retirement. This is what unretirement is all about! Talk with your employer to work out flexible scheduling and develop a plan to transition into a limited work arrangement. Employers are looking for ways to keep senior talent engaged so it could be a win for everyone. Or you could try a limited work arrangement in a field you’ve always loved.

The full report is not a difficult read so check it out if you can. There is a great section that points out the primary advantages and disadvantage of this strategy. And it’s important to remember that most investments are always subject to risks as well as bonuses depending on market fluctuations. I like that the study is the culmination of analyzing 292 retirement planning strategies. That can make it a good foundation for safe spending in your retirement.

Visit the Social Security Administration In Your Community

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lunchbox for retirement fund tips in addition to Social Security benefits at lunch counter

There is an official day for nearly everything and today is no exception – August 14 is Social Security Day. 

As a human resources professional, I attend a few conferences each year. One of them is the Society for Human Resource Management (SHRM) annual conference. This year’s event was in Las Vegas which is still one of my favorite places to visit! 

Almost every conference has an expo hall of sorts and, before the event, I like to plan out my expo hall strategy. One of the organizations that I try to visit whenever they are present is the Social Security Administration (SSA). 

Now I know what some of you might be thinking. Really? Social Security? They probably have a dinky little booth tucked way back in the expo hall and they’re not giving away any good swag. And all of that would be true. But the reason I visit SSA booth is because it’s like visiting the Social Security offices without an incredibly long wait. And the people working the booth are super nice and accommodating. 

I’m not saying that visiting the local offices are a waste of time, but let’s face it, none of us want to do it. We only go there when we have to. Or, we just take care of everything online. Visiting the Social Security booth at a conference is different because I can have a proactive and helpful conversation with them.

For example, this year, I was able to pick up three small booklets on:

Retirement Benefits

Understanding Social Security Benefits

How Work Affects Your Social Security Benefits

I also received information about my Social Security online account and what I can find online about my benefits.

Would I have driven across town and waited in an office to pick these things up? We all know the answer is “no”. But I quickly and easily got them at a conference. And I was able to review them at my leisure. 

So, the next time you’re at a conference or community event and see a government agency like Social Security exhibiting, go up and chat with them. Take the information they have to offer. Then, read it! This will make you more educated about the benefits you’re going to be eligible for at some point. 

How to Become More Media Literate

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blueprint drawing man woman shaking hands and media literate

Regardless of your politics, we’ve all been exposed to the concept of “fake news”. It might have been someone who shared an announcement that a celebrity has died, only to find out that it’s either not true or it happened four years ago. Or the news agency that labels an act of violence as terrorism before all the facts are in. Bottom-line: as much as technology and social media have enriched our lives, those tools have also created challenges in being media literate. 

So, each of us has been susceptible to misinformation on the internet. My guess is that it won’t be the last time. This isn’t something to be ashamed or embarrassed about. Even professional journalists have had it happen. And the answer isn’t to stop using the internet. It’s to get better about questioning what we read and see. 

I recently learned about a digital literacy project called MediaWise. The goal of the project is to teach 1 million teenagers how to sort fact from fiction via a course called “Civic Online Reasoning”. Don’t let the goal of educating teens keep you from being interested in this project. That being said, I’m not going to talk about the “Civic Online Reasoning” course today.

Instead, I want to talk about another course that was actually mentioned casually in a promotional video for MediaWise. CrashCourse Media Literacy is a 12-series program that focuses on how to consume and evaluate the media to become more media literate. After watching the Crash Course Media Literacy program, I would strongly recommend this course to anyone wanting to learn more about how the internet shapes our lives. 

The episodes are educational, informative, and sometimes funny. None of the episodes are longer than 10-minutes. I’d like to think that we can afford to take 10-minutes a day to learn more about the internet. And I’m not just talking about fake news. The program does a good job of defining what media is and how we need to think of it as more than Facebook or Instagram. I had several takeaways from this series that I believe will help me be a better media user.

Media literacy isn’t just about what we share. Yes, it’s important that we share only legitimate news. But it’s also important that we don’t assume the all the news we receive is always 100% complete. It’s possible that we’re only hearing a small portion of the news or the facts. And it’s our obligation as a media consumer to research the whole story. We can’t make informed decisions with a fraction of the facts. Granted, there might be times when we don’t get all the facts and we’ll have to decide what to do with that scenario as well. But sometimes, we can find more information if we go looking for it.

You should know what happens with your data. I’m not anti-marketing. I think it’s fantastic that marketing companies have access to consumer data that helps them make good business decisions. That being said, as a consumer, you do need to know what data you’re sharing with companies and what they have permission to do with it. I must admit, I was surprised that CrashCourse included a section on user data, targeting ads, and terms of service agreements. It made me realize that part of my responsibility in being media literate is understanding what happens with my data. 

Media consumers might find it helpful to understand the business of media. Another aspect of the program that I thought was interesting was the conversation about who owns what media and how media ownership can impact what information we see (or don’t see). The program also spent some time talking about which media entities are regulated by the government, which ones aren’t, and why we might want to know that information. Finally, it discussed about how media companies partner with the businesses that make our phones, computers, and televisions to form bundles and exclusive agreements, which may or may not benefit us the consumer.

The purpose of this article isn’t to scare anyone. It’s not to imply that anyone should close all their social media accounts. And it’s certainly not to say that marketing and media companies are doing anything wrong. The purpose of today’s article is to encourage people to become more aware about their relationship with media. The more aware we are about media, the more internet and media literate we can become. 

I am so pleased that I went down the rabbit hole of the internet and found CrashCourse’s Media Literacy program. I spend a lot of time on the internet. We write content that other people consume. It’s important that we’re responsible media publishers. And as individuals, we must learn how to be responsible media consumers. 

Image from the Sharlyn Lauby book Essential Meeting Blueprints for Managers

What We Are UP To in July 2019

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Watching| Spiderman: Far From Home

> I loved, loved, loved it. Nothing against the others, but in my opinion, Tom Holland is the best Spiderman. The movie had just the right amount of wrap up from Avengers: Endgame and future focus for the Marvel Cinematic Universe (MCU). There was a nice balance of seriousness and humor in this July movie. 

Reading| Harry Potter and the Chamber of Secrets

> This is the second book in the Harry Potter series. While the first one was good, this one is better. I’ve been really drawn into the story line and can tell that there will be some cliffhangers that will only be resolved in future books. We’ve also started playing the phone app Harry Potter: Wizards Unite and you can see the connection between the books and the game. Both are a lot of fun.

Remembering | Getz/Gilberto

> Sad to say, João Gilberto, one of the founders of the bossa nova sound, recently passed away in July. Keith and I have recently become big fans of bossa nova music and discovered his 1964 album Getz/Gilberto. Fantastic! It includes one of our favorite songs, “Girl from Impanema”. If you’re looking for something new to listen to…might want to check this out.

Working On| Our Fantasy Football Draft

> Because of our move to Gainesville, we took some time off playing Fantasy Football. Well, no more. We’ve signed up for a league on NFL.com and are now spending time trying to learn player statistics, etc. It’s a welcome distraction and a nice way for us just to spend our Sundays relaxing, watching football, and maybe cooking something in our new Ninja Foodi. 

Feeling| Productive!

> I typically work with three monitors. Yes, three. For years, I worked with two. Then one day, while fixing one of our computers, our technician suggested three. I thought to myself, “I don’t know. That seems a bit excessive.” Well, later I had the chance to test drive three monitors and OMGosh…it’s fabulous! Anyway, my external monitors have been out of commission for the past month and now they’re finally working again. I’m in heaven and productive again!

Planning| Home Time

> With the exception of a short business trip, I’m basically at home for the next couple of months starting in July. And I’m delighted. I don’t mind traveling, but for those of you who are like me and travel regularly, it’s also nice to be home. 

Loving| Herman Miller Cubert Personal Light

>  A friend of mine sent me the best gift – a Herman Miller Cubert Personal Light. I adore the modern design. And it’s very functional. Not only is it a light, but it has USB ports and an outlet. It has a touch-sensitive dimmer and an auto shutoff. Beautiful and functional. It’s what I love about Herman Miller.     

Geeking|Groove Life

> As a small business owner, we like to help out other small businesses. One of the ways we do that is by backing Kickstarter campaigns. Our latest is Groove Life. The company has been around since 2015. They make silicone jewelry. Groove Life was looking for backers for its latest product – silicone watch bands. As backers, we received new Apple Watchbands and their signature silicone rings earlier in July. So far, we’re impressed. Great for a hot day when you don’t want to wear metal. 

We hope you’re enjoying the summer. What’s UP with you?

Manage Your Digital Life with These Three Tools

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Out of Print Sign digital life and technology

We recently published a list of cybersecurity resources from TechCrunch and Google. If you haven’t seen them, it’s worth checking out.

As technology continues to fill our lives, we need to find ways to manage it. I’m not talking about taking digital vacations, although establishing boundaries is a good idea. When we use technology, we open ourselves up to risk. Even when we do all the right things, it’s possible we will have personal information exposed. Today, it could make sense to evaluate whether or not you need some helpful tools to manage your digital life. Here are three tools that we’ve added to make our digital life more secure. 

Password Managers

Consumer Reports published this informative article on “Everything You Need to Know About Password Managers”. And this article from CNET will give you some suggestions for “The Best Password Managers of 2019”. Personally, Keith and have been using LastPass with good results. They offer a family plan so you can make sure that a designated person can access your information in case of an emergency. 

While it’s not a exactly a password manager, I also recently purchased a Google Titan Security Key. This device provides a super-duper level of two-factor authentication to your accounts. I must admit, I’m still trying to figure it out, but I believe it is worth experimenting with. Oh, and if you saw those recent articles about a flaw in the Titan Key, Google is replacing them. Just contact them.

Identity Theft Protection Services

It’s sad to say that in today’s world we must think about this…but we have to think about this. Identity Theft is an issue. A big issue. According to a study published on ZDNet, around 15 million people in the U.S. have been impacted by fraud. To safeguard yourself, you have two options: you can do this yourself OR you can subscribe to a service. A third option would be waiting for a company to provide you with the service for free after your information has been compromised. (Please detect the cynicism in my last sentence.) I found this article on Nerdwallet that could help you decide “Do You Need Identity Theft Protection Services?”. 

CNET also put together a directory of ID monitoring services in their article “The Best identity Theft Monitoring Services for 2019”.

Virtual Private Network

A virtual private network (VPN) is designed to protect your private web traffic from being snooped by outside entities. The purpose isn’t because someone is doing something sinister. But let’s be real, it’s kinda creepy to know that somebody could be snooping around in my web traffic even if it’s nothing more than cute lemur pictures, shoe sales, and Randy Rainbow videos. 

If using a VPN interests you, this article from CNET on the “Best VPN Services of 2019” might be helpful. 

I really don’t like being cynical about the use of technology, but I do think it’s important to be realistic. Technology isn’t going away any time soon. We must be responsible technology users which means finding tools to help us manage our digital lives. 

Do you need to do these things? Maybe not. Personally, I’m finding this is one of those topics where I regularly ask myself, “Can I do it? Yep. Is this the best use of my time? Not really.” Maybe I need to find some tools to help.

Planning, Goals and The One Question to Ask for Retirement

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Sign I Am Powerful in planning for retirement

Many years ago, I was interviewing for my very first management position. As I remember, the conversation went something like this:

Hiring manager: What would you say is your biggest weakness?

Me: I don’t do very much in the way of goal setting.

Hiring manager: So, what is your process for getting things done?

Me: I sort of think about what needs to get done then work towards accomplishing that.

Me: Oh, I guess I do some goal setting after all.

True story.

In my effort to think like a manager, I had made the mistake of thinking that goal setting was only that thing you did during your annual performance review (or around New Year’s). The hiring manager either took pity on me or was impressed that I had that epiphany, so he immediately asked me how soon I was available.

Fast forward to today. Sharlyn and I are working on an ongoing project when we discover that the company we had contracted with had made a sizeable error. For a few minutes, we discussed a number of different ways to address the matter. Then, at the same time, we both said, “What do we ultimately want to come out of this?”

That’s the question that identifies the goal and helps formulate the plan to accomplish it. Goals come in all shapes and sizes. When you realize that, planning and goal setting becomes much more manageable – regardless of the size  and scope of the project. And that is very powerful!

Once we know the result we’re looking for, is it possible to apply this thinking to something like our unretirement?

The BHAG – Business guru Jim Collins wrote about the Big Hairy Audacious Goal, which is the huge goal that we are planning to accomplish. For Sharlyn and I, it’s probably the same as everyone – having enough money for a comfortable retirement.

Plan Goals – In planning for retirement, there are several goals that help us accomplish the BHAG. Reducing expenses is a great example. So, we identified one of our large annual expenses – groceries – and put together a plan to reduce that expense. The plan goal was to lower grocery spending and we ended up cutting that expense in half.

Micro Goals – Some may call these short-term goals. In our example, there were many ways to cut grocery costs. Especially since, for us at that time, going to the grocery store was just walking up and down the aisles picking up anything we liked. One very effective solution was to plan our meals so all we purchased was what we needed for each meal.

While this was a very effective and helpful (and enlightening!) exercise, it’s no surprise that cutting grocery costs alone didn’t provide enough extra money for our BHAG of a comfortable retirement. But it was an important step in the overall planning process. And every step of the way, we ask ourselves what we want to accomplish because accomplishing all of those micro goals will add up toward the BHAG. 

Oh, did I get the job? No. But that got me started on planning for the next opportunity.  

Encore Careers – Part Four: Journal Your Experience

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Garden path as a metaphor for encore careers path

One of the takeaways I’ve tried to stress in this series about encore careers is that it is a path or process that takes time.

Whenever I’m working on a long-term process, I like to think about journaling as a way to keep track of my thoughts. Consider creating an encore career journal to help you document your decisions, skills, and future plans. Here are five things about journals to keep in mind:

  1. Pick a format that suits you. The great thing about journals today is that they can be paper or electronic. Use whatever works best for you. Personally, I love paper and like the idea of rereading my comments. It can help me make decisions. A Bullet Journal might be perfect for the task.
  2. Dedicate it to a single idea. If you already journal, then you might want to create a separate journal focused on unretirement or encore careers. That way all of your thoughts and ideas are in a single place. For a few years, I kept a secret board on Pinterest focused on “unretirement”.
  3. Stuff articles and reminders in them. This is kinda related to the last point. Whether you read an article online or via a paper magazine, you can cut/paste them into your journal. If you’re a visual person, you could create a vision board focused on your unretirement journey or encore career.
  4. Be flexible with your schedule. Because I suspect developing your encore career plan is going to take some time, a journal allows you to set it to the side when life gets busy and pick it up later. The important part is not to forget about it. That might be one advantage to a paper journal, it could stare back at you.
  5. Allow it to help you. What I mean by that is give yourself permission to not know everything. Your unretirement and encore career is a journey. Write down your thoughts and let them sit there. You don’t have to take action right away. At some point, you might want to share your journal with a family member or a retirement coach. 

Journals are an effective way to document your ideas, thoughts, and feelings about a subject. They give you time to think things through and organize information. Your retirement is one of the most important things you will do. It deserves a little planning. You’re never too young to start. 

Image captured by Sharlyn Lauby while exploring the Ali’i Kula Lavender Farm in Maui, HI