A different setting brought about another opportunity for retirement redemption. A retired female client called to say she was thinking of taking a large home equity loan at just 2.5 percent interest. Her plan was to use a small portion for some home renovations and then give the rest to me to invest. I cautiously responded by asking her a series of supportive questions: “Tell me more about the thoughts and plans behind your decision. Was this spur-of-the-moment or something that’s been in the works for a while? Is there any reason why you would rather get a loan than use your existing savings? Have you discussed it with anyone else?”
After some discussion, it became apparent that the decision to renovate her home was in response to boredom, loneliness and anxious feelings about using up her money without running out of it. I encouraged her not to take the loan and suggested, “One thing I have learned over the years is that stuff doesn’t make people happy.” The reality is that new cabinets and stainless steel appliances don’t pick up the phone and invite friends over, they don’t mend broken relationships, and they surely don’t help take off excess weight or remedy those financial worries that cause sleepless nights. In other words, stuff doesn’t offer clients the opportunity to reconcile and fix what may really be going on.
I say and do these things because over the years I have developed a personal set of simple saving, investing and risk management beliefs that go beyond traditional retirement and investment planning. They are:
- Money can’t buy happiness, caring friends or good health.
- Return is created by what you give; it’s not just something you get.
- Personal doubts and regrets are life’s biggest risks.
I wish I could tell you that I have always followed these rules and a course of redemption, but that’s not the case. They were created over time, through many failures, lost clients, missed sales and personal challenges in my own life. All of which help me see the need to change and be more than a financial resource in people’s lives. A process that reminds me of a story I came across several years ago
During a naval training exercise plagued by poor weather and heavy fog, a battleship's lookout reported to the captain: "Steady light, bearing on the port bow, sir."
The captain called out, "Signal that ship! We are on a collision course! Advise it to change course 20 degrees."
A return signal was quickly received, "Advisable for you to change your course 20 degrees."
Growing impatient, the confident captain ordered the signalman, "Signal: I am a Navy captain! Change your course 20 degrees. Now!"
Seconds later, the signal was returned, "I'm a seaman second class. You had better change your course 20 degrees."
The captain, now furious, shouted out, "Send: I am a battleship. Change course 20 degrees immediately!"
A final signal was returned, "I am a lighthouse."
The captain changed his course.
Retirees today are definitely concerned about running out of money, but they also need help replacing their work identity, filling their time, staying connected to family and friends, as well as keeping mentally and physically healthy. As the gatekeepers of retirement, we are well positioned to add value and redeem our industry by continually adjusting the course and the directions we give to our clients.
I encourage you to be a light and use redemptions to help people make the most out of their retirement. After all, redemption is a process and is never perfect, but like retirement, it’s a process in which deliverance, forgiveness and reconciliation offer rewards beyond a dollar sign or decimal point.
Follow Robert Laura on Twitter @robertlaura. He is the president of SYNEGOS Financial group, co-founder of RetirementProject.org, and author of Naked Retirement. He can be reached at [email protected].