Investments/retirement professor and Frank M. Engle Chair of Economic Security at The American College. Researcher and speaker on the science of living well in retirement.
None of us want to admit we're going to die. But recognizing our mortality is an essential part of planning for a life in retirement. Many retirees don't spend enough because they act as if retirement isn't finite. Science shows that the fear of death often prevents us from making more rational choices. To quote my uncle, who I often refer to in my presentations on life in retirement, "Sometimes I wish there would be a clock I could set for the end of my life. If I set it now and it gave me a reading of 2,124 days, 13 hours, 25 minutes, and 14 seconds to go before the end, I would not procrastinate any more. If I was aware that every tick tock of this clock was winding my time down to zero, I might not relish those deep sixty-minute naps I am taking every afternoon, from which I awake completely disoriented. I would be painting my house. Repairing cracked caulk in the bathrooms. Attending social gatherings and musical soirees. I would be driving my Alfa Romeo Spider as fast as I could every day of the week." (from Please Enjoy Your Happiness by Paul Brinkley-Rogers). Russell James, J.D., Ph.D., CFP® has done important research on the impact of mortality salience on financial planning decisions and the techniques advisors can use to get around it.
"A great way of thinking about retirement is that your life is basically a row of dots... if you retire at 65, retirement is two rows of ten dots and one row of five dots. That's all you get." - Michael Finke from How to Retire by Christine Benz I love time visuals. After reading Michael's chapter in Christine's book I raided my daughter's marker collection. Reminded me of Wait by Why's excellent life in weeks visual which I also loved. Michael's lesson in the book is all about making sure you are prioritizing relationships and health to ensure you can make the most of those dots. While also being very intentional about how your life might change from row to row. For FIRE, it can be a lot of dots. Making the lessons even more important.
A picture is worth 1000 words for sure! I assume the assumption above is living to 90? Even that level of longevity showing more sunsets than sunrises makes you rethink priorities.
Tamiko Toland
4mo
Maybe he shouldn't focus on recaulking the bathroom. My guess is that he gets a lot more satisfaction out of socializing and risking his life behind the wheel. Life is short.
I advise my clients not to be the richest person in the Cemetary.
AI is going to add an incredible number of dots into the future. Affluent retirees will routinely live to age 100 and beyond.
I love this anecdote Michael. However, those of us with ADHD would surely try to cram all of our life’s desires into the last 45 mins! 😆
Steve Prew
4mo
Your Uncle is a wise man! Live in the present, enjoy EVERY moment. The past is gone and the future is never guaranteed!
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4moMichael Finke would the corollary for working-age people be to live in the present while preparing for the future?