Unretirement Project

Retirement Redefined

You are here: Home / Archives for Keith Lauby

Now May Be the Best Time to Volunteer – Or Not

by Leave a Comment

Original art by Peter Tunney Today Is the Day as it might apply to being a volunteer

According to the Bureau of Labor Statistics, 62.6 million people volunteered in the United States at least once in 2015 which was the last time such statistics were published. Of those volunteers, most were between 35 – 54 years of age and they spent a median of 52 hours on volunteer activities.

We know that planning is important when it comes to unretirement. There seems to be a never-ending number of decisions to be made and, possibly, changed along the way. We’ve written extensively about the importance of getting these decisions right to keep your retirement years sustainable and enjoyable.

But an encore career is just a part of your retirement life. It’s essential to find other ways to fill your retirement days.

Volunteering may be a great way to match your interests and skills with great opportunities to help and give back. In fact, AARP is so supportive of volunteering, that they have created a portal specifically for volunteers. Their Volunteer Wizard can guide you to the perfect experience for your interest and skills. They can even narrow it down to within 10 miles of where you live.

If you are like me and a global pandemic cramps your travel, never fear. There are many volunteer opportunities to be had that only require a phone or computer. Online tutors are in huge demand right now. If you are more of an environmental activist, many organizations are looking for volunteers to support causes like save the bees and stop overfishing oceans. Citizen scientists can volunteer for eBird through the Cornell Lab of Ornithology to record local bird sightings.

Let’s not forget that this is an election year and parties, candidates and causes are all looking for volunteer help. Highly organized campaigns have lists of voters who actually want to receive text messages. Or you can work to help register voters before the general election. If you can safely get to and volunteer at your local voting site, many are desperate for help in the weeks ahead.

Simplification may be the key for many who have a very active retirement life. But don’t let that stop you from giving back. I’m talking about shopping and giving a portion of what you spend to charitable causes. Sites like AmazonSmile offer the same products you buy at the same prices, but they donate a percentage of the proceeds to the charity of your choice. It’s simple and automated – all you have to do is select a charity and start shopping!

Right now may be the best time to do some research to find that volunteer opportunity. Many of us are still cutting back on activities and travel due to COVID-19. Use your spare time to find something that matches your interests and skills. And if volunteering is still a few months or years away, no problem. You can do the groundwork now to find what’s best for you.

We know that, for many, workplace unrest, furloughs and layoffs have upended retirement planning. Volunteering may not be an option when your focus is on an interim job or your next opportunity. However, a volunteer role may provide experience, new skills, or connections that could lead to a new job. Something to keep in mind. For others, volunteering can be a rewarding way to support others and the causes that really matter.

Examining the New Normal After COVID-19

by 2 Comments

this is your moment sign in Atlanta implying the new normal

You have probably been reading and hearing the term “new normal” a lot lately. Wikipedia indicates that “new normal” became popular as a business term to describe the financial conditions following the 2007-2008 financial crisis. Today, the term is frequently used to describe the period following the COVID-19 pandemic – specifically, as we emerge from shelter-in-place restrictions. It references the social and economic changes that will impact most of us moving forward.

But what can we expect from this “new normal”?

Clean is the new green – we’ve learned since childhood that cleanliness prevents illness and that message was abundantly clear as COVID-19 spread across the globe. Experts agree that simple precautions such as sneezing and coughing into your elbow, frequent hand washing, and cleaning frequently used surfaces will continue as areas of focus. Consumers may even be even more critical of business cleanliness when they decide which restaurant or hotel to use. Some like immunologist and director of the National Institute of Allergy and Infectious Diseases Dr. Anthony Fauci think this may even be the end of the handshake.

Age in place, but with a little more space – it’s possible that retirees who had been considering downsizing to age in place may be rethinking that strategy in the new normal. Smaller condominiums or apartments which offered a little cost savings may be viewed as undesirable due to density of population in those structures. That also extends to the location, as less populated rural settings are being viewed as more attractive over urban or even suburban settings.

“Economic Darwinism” for some but a rebirth for others – Economic Darwinism is the concept that there will be an economic elimination of antiquated industries. For example, while many have been holding onto their paper magazine or newspaper subscription, that option may be a little closer to extinction. Though digital media also has expense limitations, it is far more cost effective in the new normal. Another casualty may be the buffet restaurant as diners steer clear of exposure to multiple hands. And though the neighborhood multiplex theater may be closed, many areas are seeing new interest in drive-in movies which provide built-in social distancing.

Staying home or the new travel – as sheltering restrictions are lifted, we have the opportunity to venture out. But will we? And, if we do, what will that look like? Cruise lines are still grounded, and most expect to stay that way until late July or August. Rental shares like Airbnb are being overlooked in favor of hotels with more rigorous cleaning protocols. Given all that, many are simply choosing to stay home. In fact, home goods stores are reporting significant growth as homeowners try to fix their place up.

One thing we know for sure right now is that things are changing. And they may change again with the possibility of a second wave of COVID-19 cases in the fall and winter. Fortunately, medical professional are working on treatments and vaccines, but that could take months or even years.

If you are a planner like us, you probably already know that we’re not going back to the way things were. And you might feel a little frustrated by the speed of change as we begin our entrance into the post COVID-19 era. But we can focus on our lessons learned to protect ourselves and our loved ones. It’s a bold New Normal, but we’re up to the task!

Retirement Planning Bot: A Unique Solution for Unique Times

by 1 Comment

wall art bot representing a retirement planning bot

We’ve all seen the terms recently – unique, unprecedented, even surreal or seismic. Whatever you call these pandemic times, most of us can agree that they often require equally anomalous ways of dealing with them. Depending on how close you are to retirement, that could apply to your retirement planning too.

I was excited to see that Michelle Singletary, personal finance columnist for The Washington Post, has introduced a retirement planning bot to “see us through the coronavirus pandemic and beyond”.

If you aren’t familiar with bots, they are software applications which are programmed to complete certain tasks. In this case, the bot collects information about your financial situation and retirement plans and makes recommendations relative to both. I had the opportunity to run through the bot program and see first-hand some of their suggestions.

The good news is that this is all completely anonymous. While they ask specific questions about your finances, they don’t know who you are, and they don’t save any of your information. Along the way, you can hear advice and commentary recorded by Michelle. I’ll be candid: I didn’t always find them helpful, but I thought they were good reminders and could offer a little effective guidance, particularly for some people who may be early in their planning.

On the downside, the program doesn’t factor whether you’re planning as an individual or a couple. That can make a huge difference when they ask for retirement or bank account balances and earnings. The bot also doesn’t ask your expected retirement age. It just makes the assumption that you will retire as soon as you reach the age for full Social Security benefits.

The best thing about this particular retirement planning bot is that it provided a step-by-step guide with as much hand holding as you can expect from a robot program. And there is a little encouragement along the way provided you are doing something to fund your retirement. They even have some FAQs at the end.

A couple important things to focus on:

  1. This is not a replacement for your professional financial advisor. A single source of information is rarely enough for something as important as retirement planning.
  1. You may not agree with the assessment of your financial situation and your retirement plans. That’s okay. It doesn’t mean you are doing a bad job of funding your retirement.

I think the best way to view this tool can be found in their own description:

“We may not be able to capture everything about your financial situation, but it’s a place to start”.

Many people are very concerned about their financial situation right now regardless of when they plan to retire. This retirement planning bot may help relieve some of the stress as you think of future plans. Who knows? You may just be better off than you think. And, if not, you could get some ideas on how to get back on track.

Image captured by Sharlyn Lauby while exploring the streets of Fort Lauderdale, FL

Using Social Media in Unretirement: 5 Day Plans

by 1 Comment

using social media on a phone while traveling in unretirement

When we have a little spare time – or when spare time is abundant – many people look for opportunities to better themselves. That’s smart because new skills can often open doors. Whether you plan to work during retirement or you just enjoy learning new things, successfully navigating social media platforms may bring both satisfaction and opportunities.

Communication skills have always been a desirable workplace competency. It factors heavily in productivity, leadership and, of course, marketing. In today’s modern workplace, that includes online communication. Social media is particularly valued because of the vast number of users. For that reason, I’ve written short 5 day learning guides for Facebook, LinkedIn, Twitter and Instagram.

Your 5 Day Plan to Using Facebook

Many of us are already using Facebook which can be a valuable business tool without disrupting our personal space. Businesses and groups are plentiful, so there are work related things I just prefer to read on Facebook. Best of all, Facebook is very helpful in offering notifications and reminders to keep you on top of important customer interactions.

Your 5 Day Plan to Using LinkedIn

LinkedIn is another social platform where most of us can already be found. And whether you are looking for a career opportunity or just want to network, the business application of LinkedIn is second to none. LinkedIn is great about helping you optimize your profile and connect with others who share your work interests.

Your 5 Day Plan to Using Twitter

Twitter describes itself as an online news and social networking site. Over the years, Twitter has made several changes to become more business friendly. Today it’s easy to have conversations with your Twitter contacts or even Tweet Chats with larger groups who share common interests. You can quickly grow an audience on Twitter.

Your 5 Day Plan to Using Instagram

Instagram has rapidly risen to the top of the social media ecosystem where 80% of users follow at least one business brand. Instagram grows brand recognition through the power of visuals with graphic images, videos and stories. Following hashtags will help connect you with a global audience that shares your interests.

There are a few other popular social platforms like YouTube, Pinterest and TikTok that you can explore. But I wanted to give you some basics here to help you build a solid foundation.

By now we know that social media isn’t just some fad. It continues to grow as a communication medium, connecting business and personal brands with a vast global network. Whatever your goals, you can scale your social media activity up or down. Right now, we’re really experiencing the value of connection. Learn how to carry that forward into your own unretirement.

Retirement Savings Boost Due to Relaxed Rules

by 1 Comment

wall art help with retirement

We don’t write a lot about retirement finances – preferring to leave that to the experts. But there are some recent changes worth knowing about regardless of when you plan to retire. And it’s definitely something you should know if retirement is a relatively short time in your future.

Of course, I’m referring to the Coronavirus Aid, Relief, and Economic Security Act or the Coronavirus Relief Bill as it’s commonly called. Just signed into law, this new measure is designed to stimulate the economy and offer economic aid to those negatively impacted by this global pandemic. 

The most visible benefit of the new bill is a direct, one-time payment to most adults. The actual amounts of each stimulus check depends on age and reported income so be sure to read up on the details. Best of all, the bill includes language that allows Americans receiving Social Security to obtain a stimulus payment as longs as they received a Social Security benefit statement (SSA-1099).

The aid package provides three provisions that can benefit your retirement financing.

  1. You can delay taking your Required Minimum Distribution (RMD) for most defined contribution plans when you reach the applicable age as indicated in the SECURE Act. This new law suspends those RMDs for all of 2020. It’s particularly good news since cashing out securities in a depressed market is not ideal. Of course, withdrawals are still allowed if you really need to make them.
  1. The bill allows you to borrow more against the money you have already saved in your contribution plans. Typically, you could borrow up to $50,000 or 50% of your vested account balance, whichever is less. This new measure will double that and allow you to borrow up to $100,000 against your existing savings.
  1. The Coronavirus Relief Bill allows struggling savers to take hardship distributions of up to $100,000 from retirement plans and individual retirement accounts in 2020 without the 10% early withdrawal penalty if you are under age 59 ½. Smart investors know that this early withdrawal is never ideal – but it is available if needed.

Planning your finances for retirement is not easy even in the best of times. As global economies struggle to deal with the outcome of this pandemic, many workers are rethinking their retirement plans. The hope, of course, is that recovery will be quick. These relief measures are expected to help those who need it the most.

Qualifications directly related to COVID-19 may apply so, before taking any actions, we recommend that you discuss them with your financial professional.

If you are looking for additional resources to help you during these difficult times, AARP has a few great articles including regular updates as significant events happen. Caregivers can find information on taking care of a sick relative or friend. Best of all, they include some great tips on how older adults can reduce their risk of illness. Stay safe out there!

Image captured by Sharlyn Lauby while exploring the streets of Havana, Cuba

Spend Safely: Stanford Study on Retirement Planning Strategies

by 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:

  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.

Planning, Goals and The One Question to Ask for Retirement

by 3 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.