Try assessing yourself according to Russ Alan Prince's nine high-net-worth personality types: family stewards, financial phobics, independents, the anonymous, moguls, VIPs, accumulators, gamblers, and innovators. If you're an accumulator, will you feel comfortable when you stop amassing wealth? If you're a VIP, will you worry that a fixed income won't allow for the status symbols you crave?

Start early.
Tom is 79 and going strong. He has no contingency plan and no junior. He feels "healthy as an ox" and has no intention of slowing down. He loves his work so much that he can't imagine life without it.

Many advisors find themselves in this situation. Some have been doing what they do for so many years that they simply can't imagine anything else. Little by little, personal identity merges with work identity, and before they know it, individual identity vanishes. Their identity is their work. To maintain a strong sense of self, start cultivating a work-life balance early in your career. Experts like Stephen Covey and Dan Sullivan preach concepts like "sharpening the saw" or "free days"- basically, breaks from work-related activity. By scheduling time to rest and rejuvenate, you'll build a healthy identity outside of work.

Make a plan.
Far before she moved into retirement, Janet worked with a consultant to craft her game plan. As a result, her exit from the industry and traditional work life opened up enormous opportunities. Beyond travel and golf, she recently spearheaded a trip to Haiti, something she never would have considered before retirement. And she loves her new beachside condo near her grandchildren, which allows her to play an increasingly important role in their lives.

To enjoy retirement to the fullest, experts say to plan early, not when you're ready to retire. At each passage of life, consider the following questions. Your answers will evolve as you move through your 20s, 40s, 60s, 80s, and beyond.

    Where will you live?
    How will you gain regular intellectual stimulation?
    What values will you hold most dear?
    What aspects of work will you pursue?
    How will you gain and maintain social connections?
    What will you do for fun?
    How will you stay mentally and physically fit?
    What hobbies will you pursue?
    How will you manage your finances?
    What have you always wanted to do, but haven't done yet?

Why does being personally prepared matter?
Mapping out your own path for the next stage of life has a number of benefits, both for you and for others. As planning professionals, financial advisors recognize the value of a sound game plan. A proactive, planned approach to retirement limits surprises, promotes creative thinking about the future, and positions you to leave a powerful legacy.

Also think about the attitude you pass along to your children and employees. If you dread retirement, it most likely will be dreadful. If you embrace transition, you model vitality at every stage of life for the next generation.

Finally, being personally prepared tells your clients that you have their best interests at heart. Addressing how clients will be served once you are gone demonstrates that you care deeply for them. If nothing else motivates you to tend to your own succession plan, the desire to do right by your clients should.

Joni Youngwirth is the managing principal of practice management at Commonwealth Financial Network, member FINRA/SIPC, a registered investment adviser, in Waltham, Massachusetts. She can be reached at [email protected].

 

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