Retirement Is Scary
Whether you are a fan of Mixed Martial Arts or not, the sheer idea of entering an eight-sided metal cage with another human being trained to hurt you, and with a plan to inflict serious pain on you, is more than scary to me; it's downright frightening.
I asked former UFC Light Heavyweight Champion Tito Ortiz if he was ever scared before entering the ring. To my surprise, he was very upfront about his mental state before each fight. "I was always very nervous and full of fear," he admitted. "I'd pace back and forth, going through a series of emotions, and then throw up just before heading to the ring." I wasn't expecting to hear that kind of response, but he went on to say, "Once in the ring I found a sense of peace and comfort. I think the nervousness and throwing up was actually the fear leaving my body as I prepared to do battle."
The idea of retiring can bring out real fears, emotions and, in some cases, even a physical reaction, although not everyone would be as upfront as Ortiz about the impact their fears have on them. What's important is how he felt as he answered the bell. He said he had spent so much time in a ring and practicing for every conceivable punch, kick, or takedown move that he felt very at home ... he had a "sense of peace and comfort."
Unfortunately, that's not the case for many heading into retirement. They haven't practiced or prepared much for the "punches, kicks, and takedowns" that are inevitably on the horizon. Instead of being superficial about all the great things sure to happen, advisors need to prepare clients for actual retirement situations and help them understand the challenges they may face, including:
How their marriage will hold up as spouses spend more time together
How caring for an adult child, grandchild or parent may impact their plans and goals
How they will respond to a financial emergency of $10,000 or even $20,000
Who they will turn when a medical diagnosis, stroke, or other health condition disrupts retirement
How a shrinking social network and declining physical capacity may interfere with their emotions
How they may react to an adult child needing to move back home or borrow money
The personal and financial impact of long-term care needs.
I wish retirement was as idyllic as it is presented in 30-second TV commercials and company brochures, but it's not. Long walks on the beach and watching your grandchildren graduate from college comprise less than 1% of the time clients will spend in retirement. Advisors need to help clients prepare for the myriad of emotions retirement evokes, and get them better prepared so that when issues do come up, they will find that "sense of peace and comfort."
These insights from retired superstars are powerful reminders that no matter what a person's age, occupation, or work environment, we are all susceptible to similar issues when dealing with retirement. Together, advisors and clients alike can learn from what these athletes have endured and apply the things that made them great to their own retirement plans with the same passion and focus.
Follow Robert on Twitter @robertlaura. He is the president of SYNEGOS Financial group, co-founder of RetirementProject.org, creator of the Laddered Dividend Portfolio, and author of Naked Retirement. He can be reached at [email protected].