Keith Lauby, Author at Unretirement Project

Spend Safely: Stanford Study on Retirement Planning Strategies

August 21, 2019 by Keith Lauby Leave a Comment

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:

Optimize your Social Security benefits.
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.

Planning, Goals and The One Question to Ask for Retirement

July 17, 2019 by Keith Lauby 2 Comments

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 Can Offer Independence

July 4, 2019 by Keith Lauby 1 Comment

NASA Vehicle Assembly Building United States Flag symbol of Independence Day

Today is Independence Day in the United States. And what better day to think about our own personal independence. More importantly for our retirement, does an encore career factor into it?

You may recognize the building in the picture above. It’s the NASA Vehicle Assembly Building (also known as the VAB) located in Cape Canaveral. This week, Sharlyn and I had the honor of visiting as a guest of the NASA social media team to watch their latest launch of the Orion capsule.

I’m happy to say that the launch was a huge success! But, on the drive to the Cape, I thought about everything that went into this launch. The years of planning and thousands of man-hours from NASA and their private partners. Personally, Sharlyn and I needed the independence to make the trip – in terms of both time and money.

In retirement, we get the time to spend doing the things we really love. But for many of us, the lack of money in retirement could limit our independence. Balancing our retirement stop-working date with our future financial requirements is something we all need to do.

So we need to plan for that! And an encore career could offer a solution. None of us can predict the future but we can plan based on what we know. There are many free resources from the Social Security Administration that can help. Spend a little time between the barbecue and fireworks and see how independent you can be in retirement.

We have often said that successful retirement needs a lot of planning. Knowing your financial needs and the limits of Social Security are important. Just as important is understanding your personal contribution to retirement finances. And that could go a long way toward your own independence.

Your 5 Day Plan to Use Instagram in Unretirement

June 12, 2019 by Keith Lauby Leave a Comment

We have been showcasing the use of social media sites to help with marketing in your encore career. Whether your goal is to work as a freelancer or you plan to extend corporate work, social media can play a significant role. Demonstrating your skills with these platforms could make you a more marketable employee. So far, we’ve talked about Facebook, LinkedIn and Twitter. If you haven’t check them out, you can find them here:

Your 5 Day Plan to Using Facebook

Your 5 Day Plan to Using LinkedIn

Your 5 Day Plan to Using Twitter

You might be wondering why you should pay attention to Instagram if you’re already using one or all of the social channels we’ve already covered. You will see as we explore Instagram, there are some very unique aspects to this medium. As such, there are many users who spend hours on their accounts – – far more than any other site. So, as any fisherman or marketer will tell you, you need to be where your audience is!

What is Instagram?

Instagram is a free photo and video sharing app where subscribers can upload graphics and share them with their followers. Instagram launched in 2010 and quickly grew in popularity with more the 1 billion registered users as of May 2019. They were acquired by Facebook in 2012 and are arguably the most popular social media site in operation.

The reason for the popularity? Images! The main focus of Instagram is visual, and this has attracted a huge amount of creativity. It allows users to get a glimpse of the lives of their favorite celebrities and engage with beloved brands at the same time they enjoy vacation and children photos from friends and family.

You can sign up for Instagram easily and, like all other social sites, it’s free to create an account.

Your 5 Day Plan to Learning Instagram

DAY 1 – Download the Instagram App. The whole idea behind Instagram is to quickly and easily share images and video you capture with your mobile devise. For that reason, it’s easier to use the mobile app which is available for iOS or Android.

DAY 2 – Start Following. Like most social sites, you have a feed that will showcase the people and brands you follow. At the bottom of your screen you will see a magnifying glass so click on that. Here you can enter names of people you know and follow elsewhere or topics you find engaging – like retirement. Just like with Twitter, hashtags will bring users with similar interests together. If you find an image you like, click on it to launch a window with all the posts within the hashtag. From here, you can immediately follow them simply by clicking “Follow” or click on their user name to see everything they’ve shared. After a short while, clicking on the magnifying glass will give you recommendations on people and brands to follow based on your interests and likes.

Day 3 – Engage, engage, engage. Social media is all about engagement and Instagram is no different. Now that you have people, brands and hashtags to follow, you are bound to find photos and videos you really like. If so, go ahead and click on the “heart” under the image. That will tell the person – and Instagram – that you like it. You can also post a comment by clicking on the “word balloon” or you can “heart” other peoples’ comments. Pay attention to the hashtags that your followers share. If you like their content, chances are good that their hashtags will lead you to others who share similar – but different – images.

Day 4 – Post a Photo. By now, you should be pretty comfortable getting around the app. You found some people to engage with and you want them to interact with you. It’s time to post a photo! Once you have a subject, take 2 – 3 photos at different angles. At the bottom of the Instagram app is a plus sign – clicking on that will bring up your camera roll where you can choose the best image to share. Click on the image then click “Next”. This will take you to an editing screen where you can quickly edit the shot before posting. Or you can quickly apply a “filter” which applies a preprogrammed set of attributes to your image. For now, just keep it normal and click “Next” again. In this screen, you can say something about the image (don’t forget hashtags), tag people, and add location information before sharing.

Day 5 – Set Audience Goals. To be really successful at something, we need to have goals. As you can see with Instagram, like most social channels, success is centered around growing your audience. And growing an audience takes more following, posting and engaging. You can make your goal to follow 5 new people every day and follow one new hashtag every week. Set aside 20 minutes every morning to like images and share comments. And don’t forget to snap some photos and share them as well. Remember, there aren’t any shortcuts for this so just schedule the time. Before you know it, you will have a fun and engaging audience!

BONUS! Repost for Instagram. You may have noticed that Instagram differs from most social platforms in that they don’t easily allow you to share other people’s images. The idea behind Instagram is to informally let others get to know “the real you” through pictures. So, they want you to share YOUR pictures. Fortunately, enterprising app developers have created independent apps that will allow you to repost what other people share. Just look for them wherever you download your mobile apps.

Instagram has set itself apart from other social platforms by creating a unique and exciting ecosystem and remaining true to their brand. That should be a lesson for all of us! Another thing to know is that 80% of Instagram users follow a business brand. That shows the power of Instagram in brand marketing. Just think what it can do for your personal brand in Unretirement!

Your 5 Day Plan to Using Twitter in Unretirement

May 8, 2019 by Keith Lauby Leave a Comment

This is the third installment in our series about using social channels to help with marketing yourself when working as an independent contractor during retirement. First, we discussed the benefits of using Facebook to expand your audience. Then we talked about LinkedIn and how you don’t have to be looking for a new job to benefit from sharing and writing articles there.

Today, I want to look into Twitter and see how it can help you in unretirement.

What is Twitter?

Twitter launched in March of 2006 so, by now, many of us probably have an account. Twitter describes itself as an online news and social networking site. It has also been called a microblogging site. Did you know:

Over 330 million monthly active users worldwide share “Tweets” of 280 characters or less (that’s double the number they started with).
The average Twitter user has 707 followers.
66% of brands with 100 or more employees have a Twitter account.

500 million Tweets are sent each day – that’s 5,787 every second! In addition, Twitter is the number one platform for government leaders. Even in unretirement, you should really appreciate that kind of activity.

How do you create a Twitter account?

If you don’t have one, perhaps the most difficult part of creating a Twitter account is getting a unique name. That’s because there can only be one of us in all of Twitter. So, if your name is John Smith, chances are pretty good that someone has already claimed that.

If the name you select is already taken, Twitter will immediately prompt you to select another. You may have to do this a few times so don’t get frustrated. Keep in mind that your ultimate goal here is to grow your followers. So, if you have to get creative with your Twitter name, think of something that is memorable and makes people want to learn more about you. For example, Unretirement Project wasn’t available when we created a Twitter account for this blog, so we chose @UnretirementPro instead.

Once you have your name, you will be asked for a brief bio and link to your website (if you don’t have a blog, use your LinkedIn profile). Again, share information that people will want to engage with. You want the Twitterverse to follow you and click on the link you share.

Finally, you will want to upload an avatar photo so others will recognize you when you show up in their Twitter stream. If this is to promote your side hustle, you can use your business logo. Just don’t skip this step! There are many users who just ignore connection requests from people who don’t have a profile picture.

There are a couple of good resources that can guide you in creating an impressive Twitter profile:

5 Simple Tips for a More Impressive Twitter Profile

How to Make a Perfect Twitter Profile: A Complete Guide

Your 5-day Plan Being a Twitter Pro

Now that you have an account, let’s talk about the 5-day plan to learning more about Twitter.

DAY 1 – Hashtags. These days, most social sites use hashtags. But Twitter is where it all began. Simply put the # symbol in front of key words or phrases (with no spaces) to create a searchable hashtag in a Tweet. A hashtag serves two big purposes – 1) if someone is interested in a topic, they click on a hashtag and they might find you and your Tweets and 2) if they like your Tweet and profile, they may start following you. Do a search for #retirement or #retirementplanning and see what I mean.

DAY 2 – Write a Post. In the bottom right of your phone is a circle with a quill pen. Or, on your browser, a button can be found on the top that says “Tweet”. Clicking on it will launch the composition screen asking, “What’s happening?”. Just start typing your message here and share whatever you like. You can attach a link to great content (like this article). And don’t forget to add your hashtags. Along the bottom of this screen will be buttons to add photos, videos, GIFs, or polls.

DAY 3 – Start Connecting. Like most social sites, Twitter is happy to make recommendations on who to follow. Just click on the magnifying glass at the bottom of your phone or check out the section titled Who to Follow in the top-right of your browser. Just look for the Follow button next to their user name. And be sure to click on a hashtag you like and follow a few people who share your interests. You might even want to start with this great account – @UnretirementPro

DAY 4 – Get to Know Your Audience. Again, like other social sites, Twitter wants you to know about your audience and what they are saying to and about you. At the bottom of the home page on your phone is a bell so click on that. In your browser dashboard you can see the bell next to “Notifications” in the upper left screen. This will show new followers, post comments, and mentions about you. From here, it’s very easy to follow back those people who interact with you.

DAY 5 – Engage, Engage, Engage. As you scroll through the Tweets on your home page, you will probably find something interesting. At the bottom of each Tweet will be icons. If you like the Tweet, click on the Heart to let the person and their followers know. If you want to comment on the Tweet, click the comment balloon icon to launch the familiar composition screen. The two arrows icon is used to Retweet – that is, share someone else’s Tweet with your followers. You will find that, the more you engage, the more you grow your follower audience.

BONUS! Twitter clients. The Twitter site has improved a lot over the years, but you might be saying to yourself, “There’s got to be an easier way to view and engage with information.” And there is. Test drive a Twitter client such as HootSuite or Tweetdeck to help you organize information.

Twitter remains a very popular social channel – one that just can’t be ignored. The large number of active users can help you quickly grow an audience. And be sure to share all of your other social accounts with your Twitter followers. They just might want to connect with you everywhere!

Decision Making: What Underthinking Looks Like

February 20, 2019 by Keith Lauby Leave a Comment

Steve Jobs, think, decision making, retirement, retirement planning, underthinking

If you spend time on social channels, there’s a good chance you’ve seen the meme GIF about “what overthinking looks like”. It shows a young child crying in a pool, appearing to desperately cling to a lane marker rope to keep his head above the water. The mother rushes in to help him stand up in water that only barely comes up to his knees. The somewhat humorous intent, of course, is don’t overthink things – deal with the reality of a situation and you will be fine.

It’s a cute little message. But it made me wonder – where is the cute GIF about underthinking? There really isn’t one. Nor should there be. Because the result of underthinking is just bad decision making. And there’s nothing humorous or cute about that.

The business world has always placed emphasis on decision making and its importance in organizational success. In fact, our consulting firm worked with a number of companies, teaching an adaptation of the Blake Mouton Managerial Grid – a way of evaluating decisions relative to the task that needed to be performed and the people that are impacted. I won’t go into the details here. The point is, business success often depends on a systematic approach to decision making. We should carry that forward into our personal decisions.

A simplified version of systematic decision making is a 5-step process:

Step 1: Identify the Goal. This may be the most important step since it is the basis for all the rest. For this exercise, let’s say your goal is to retire comfortably as early as possible. There are some parameters here (“comfortably” and “early as possible”) that can help us identify the best options.

Step 2: Weigh Your Options. For this, you will need information. Given the goal, some of the options may be drawing Social Security as soon as possible. Or maybe tapping into your 401(k) at first and waiting a few years so you can draw a larger check from Social Security. This is the time to talk with friends and experts to learn all opportunities.

Step 3: Consider Consequences. The previous step is so important because it will help us consider the consequences of each option. Will we deplete our nest egg too soon if we wait too long to file for Social Security? What will be our tax burden, and will that eat away at our savings? This step may even help to identify other options like part-time work during retirement.

Step 4: Make Your Decision. Remember the “overthinking meme”? At some point, you have to be satisfied that you’ve collected all the options you need and evaluated the consequences of each. That should lead you to the best decision that fulfills as many parameters as possible and gives you the best outcome.

Step 5: Evaluate Your Decision. Sadly, this is often the step that gets overlooked. But, even if you did a great job with the first four steps, you may be surprised with part of the results. The worst thing you can do is cling blindly to a decision just because of the effort you put into it. Evaluate your decision and make adjustments as needed.

One other thing to remember along the way is you don’t have to do this all by yourself. Of course you will have many conversations with family and friends. And AARP is full of planning resources. You can also check out The FIRE movement (financial independence, retire early) – a group that appears to be setting new standards in financial planning for retirement. Again, do your research!

We know that life is full of important decisions and retirement is one of the most critical. Unlike the “overthinking meme”, we can’t count on someone to rush in and rescue us when we make bad decisions. Fortunately, using a good system can go a long way toward helping us make good decisions.

How To Help Your Parents Downsize Their Home

February 13, 2019 by Keith Lauby 1 Comment

downsize, shiny pretties, sign, declutter, retirement, Unretirement

Thanks to Marie Kondo, downsizing is now a thing. If you haven’t heard of her, she’s a Japanese organizing consultant and author of the best-selling book “The Life-Changing Magic of Tidying Up”. Her method, called KonMari, focuses on only keeping possessions that bring you joy. While the book has been out for a few years, Kondo recently starred in a Netflix series, “Tidying Up with Marie Kondo” reminding all of us to organize and downsize our stuff.

While I still need to read Kondo’s book, I do find the whole idea of decluttering fascinating. Neither Keith or I are big collectors of stuff, but last year when we were getting ready for our move to North Florida, we realized that we had accumulated a lot of stuff. It’s easy to do and we wrote about our experience in the post “6 Lessons Learned from Decluttering”.

To learn more about downsizing, I recently picked up a copy of the book “Downsizing The Family Home” by Marni Jameson (published by AARP). This book takes a very different (and practical) approach to downsizing in that it views it from the standpoint of a person having to downsize their parent’s (or loved one’s) home, which may or may not be your childhood home. Here are a few of my takeaways from the book:

It’s possible that we will have to ask our parents or loved ones to downsize. While some adults might decide that it’s time to downsize the house for a condo, it’s also very possible that our parents have a very comfortable lifestyle and don’t want to downsize. It won’t be until their health or age start to prompt the conversation. That means an adult child or close family member might be the person who initiates the “we need to get rid of a few things” discussion.

Getting rid of our stuff is both physical and emotional. Jameson’s book deals with both the physical and emotional aspects of downsizing. Let’s face it – all of our possessions have stories attached to them – how we got them, who gave them to us, etc. Getting rid of items that have long-term or significant memories is more than simply disposing of stuff. It’s an emotional message tied to our mortality.

Consider phases. You cannot organize and declutter your home in a day. When Keith and I were moving, we did a room every week and it took about three months. So, put together a plan. If you’re helping your parents or a loved one and don’t live close by, it might take even longer. It could also be helpful to space it out, so it isn’t a big shock when larger items (like furniture) leave the house.

Make downsizing a regular event. It could be possible that your loved ones don’t need to move or downsize into a smaller home today, but you’re thinking someday they might. If someone is apprehensive about moving to a smaller home, moving in with children, or into assisted living, it could be helpful to start downsizing early. That way someone doesn’t associate downsizing with moving away from their long-time home.

Figure out your disposal strategy. Okay, you have a big pile of stuff to get rid of. Now what? It’s time to figure out whether to sell it, donate it, or junk it. Jameson’s book devotes quite a few pages toward estate and rummage sales – how to figure out whether older items have value and disposing of them. She also spends some time talking about the difference between what parents might think is collectable and what actual collectors think.

Make a plan. One of the things I like about this book is that there’s a companion workbook (Yes, you have to purchase it extra). Instead of calling it a workbook, I’d actually characterize it as more of a downsizing journal, with prompts that allow the user to document their downsizing goals, how they feel about letting go of items, and planning for the sale of items.

It’s one thing for us to decide to get rid of our stuff. It’s another to have to help our parents part with their stuff. Especially when it’s our childhood home. We’re dealing with both our emotions and theirs. Books about downsizing, like Jameson’s, can help us bring some structure to the process.

Image captured by Sharlyn Lauby while exploring the streets of New Orleans, LA