I remember the first time I saw an amazing card trick. I was in college and a teammate of mine pulled out a deck of cards after practice. After a few fancy shuffles, he took me through a series of card tricks that I couldn’t believe.
I was mesmerized by his ability to not only read my mind but to also make my card appear at the top or bottom of the deck. I had no idea how he performed them, so I begged and pleaded with him to share his secrets—and to my surprise, he did.
Now, everybody knows that you’re not supposed to tell people how the card trick works, simply because it would cease to be magic. But my friend broke protocol in an effort to show me what was really going on and that what you see isn’t always what you get.
As he began to explain the first trick, I couldn’t help but turn a little red from embarrassment. It was so basic and made me feel naive for not catching on. As I grabbed the cards to try it for myself, he cautioned me, “The trick isn’t just in the hand motions, but in how you present it.” I didn’t comprehend his words of warning at first, but later learned that there is a certain amount of showmanship in anything that you do including retirement planning.
As a result, I not only continue to be fond of good card tricks but also many of retirement’s illusions, and like my card shuffling friend, I think it’s time to spill the beans. To give other advisors and clients a firsthand look at what’s going on behind the curtain and under the stage in an effort to better prepare clients for making the most of their time and energy during it.
Just as I was fascinated by the sleight of hand and misdirection of the card tricks, much of mainstream media and even the financial services industry portray retirement as this magical time where clients walk in a sense of awe and marvel. Unfortunately, there’s more to it than meets the eye. Therefore, advisors need to be positioned to help clients who may be struggling with the realities of retirement and feel like they are stuck in a strait jacket, being sawed in half or that their magic has run out.
Strait Jacket
You’ve likely seen an old image of Harry Houdini wrapped in a strait jacket. I don’t know if you have ever been put in one, but they are extremely confining and almost impossible to get out of on your own (don’t ask how I know).
Unfortunately, for some clients, the idea of retirement can feel like a strait jacket because they want to retire but can’t since there is someone or something forcing them to keep working. Situations like health insurance costs before age 65, supporting an aging parent or an adult child, or having an older spouse whose retirement benefits aren’t keeping up with their lifestyle costs.
There’s also another segment of this group who would rather work then be trapped at home with their spouse. These couples have plenty of money to retire, but one of them fears spending all day, every day with a significant other who watches too much TV, doesn’t have many friends and isn’t active or into travel or doing new things.