Category: LIFE

Following on from the previous blog on considering early retirement, the focus of this conversation sparker is to look at five key things that should be on our to-do list before we make any decisions about our retirement (or any big life decision!).

In his article for Glacier, Dinash Pillay, National Business Development Manager at Glacier, said that there is much for you to consider before you hand in your early retirement notice.

We know that people live longer now than in previous generations, so there is the likelihood that you will live beyond 80. Dinash says that the most important question for people facing retirement, arguably, is: will my retirement savings last as long as me? Before you make any life- or finance-changing decisions, the answers to these questions will inform your decision-making.

When life is overwhelming and we have too many balls in the air – which is common for those in their 40s and 50s – writing down lists helps us to declutter our thoughts and process the emotions before they process us.

Here’s Pillay’s 5-Check offering to help us make better choices around our retirement planning.

Your to-do list before deciding to retire early

1. Consult a personal financial adviser. If you don’t already have one, appoint a qualified, appropriately authorised financial adviser to help you make some of these decisions. If you do decide to opt for early retirement, there is little room for mistakes or bad decisions regarding investing your money. An adviser’s expertise will go a long way in enabling you to invest and retire with confidence. Also, they are not emotionally attached to your money, so will help you make decisions based on the facts, objectively taking your unique needs, investment risk appetite and lifestyle into account. 
2. Scrutinise your household budget. This means evaluating every expense incurred in your home – the essential costs of living such as groceries as well as the luxury items such as entertainment. In every budget, there are fixed costs that are unlikely to change, whether you are working or not. An example of this is that you may be paying school or university fees for your children or you might still be servicing debt. Those costs may exist for many more years. So, regular review of your budget is essential. Consider that the monthly income from your retirement fund is likely to be less than your current monthly income. As a retiree, you might be able to save on costs like fuel, but also consider new costs that could be incurred e.g. your private medical aid that previously may have been included as an employee benefit at work. 
3. Think about who depends on you financially and how long you will have to support them into the future. Your spouse may not be employed; you may still have children at school or university; you may have a disabled child; or you may have unemployed or retrenched adult children whom you support. These dependents have to be taken into account in your planning.     
4. Know how much retirement savings you’re losing by retiring early. You’d be surprised how much you could lose in savings, even by retiring just two or three years earlier than you originally planned to. 
5. Decide on how you will spend your time. Taking a dream holiday is one option, but it can only last so long. Many retirees complain about boredom within the first six months into their retirement. They have so much time with few activities to fill it. Perhaps consider creating a new source of income using your skills, or find a hobby, or think about the possibility of volunteering in your community. There are many organisations that serve the needy who could use your skills and expertise. The point is to find a new purpose and to live it with confidence.

The way that we define and refine what retirement looks like will continue to evolve as we move forward, so remember that there is no ‘right time to retire’; it all depends on your personal situation. 

Going back to point one on the checklist is always a great idea!

Source article

Our concept of retirement is undergoing a metamorphosis. Demographic, societal, and workplace trends have all converged to offer a stage of life—at mid-life and beyond—that is much more fluid and flexible than we previously thought possible.  

When planning for retirement, we are discovering that the “old rules” have been thrown out and that “no rules” apply.  

Instead of “not working,” retirement has come to mean emancipation, the freedom to choose the activities and pursuits we find the most satisfying and rewarding. In other words, our retirement experience has become a matter of personal definition.

Because of increasing longevity and more active lifestyles, many individuals are viewing this time in life as an opportunity to explore their potential.  

Clarify Your Values & Priorities

Most importantly, creating a No Rules Retirement™ is all about identifying, pursuing, and living in sync with your personal values and priorities. In fact, the greater your understanding of what is important to you, the easier it will be to “paint a picture” in your mind of what you want your life to be like in this stage of life. In addition, the clearer and sharper your vision becomes, the more naturally you will gravitate toward that image. 

In addition, as you purposefully and progressively “make room” in your life for what is meaningful to you, the degree of happiness and fulfillment that you experience will grow and multiply. Therefore, an important mantra for everyone, regardless of age, should be “if it is to be, it is up to me!” To ensure your success, make it a priority to invest in all areas of your life. Always remember that the choices you make on a daily basis are cumulative and will determine the quality of life you experience 10, 20, and 30 years in the future.

Visualize Your Future

A good approach to preparing for your own No Rules Retirement is to first picture yourself at different ages and stages in each area of life. Take time to visualize what you would like to have, do, see, feel, and experience in all of these areas. Draw a picture in your mind of the life you want to have and then continue to build on that image.  

As you visualize the lifestyle and quality of life that you would like to have at midlife and beyond, remember that the secret to realizing your dreams is to maintain a “future focus.” This perspective will not only help you to maintain a positive outlook, but will also require you to acknowledge the influence of choices made today on your life in the future.  

There is a lot of truth to the old saying that “if you don’t know where you are going, any road will take you there.” As you plan for your future, it is important to envision and articulate the various elements you want to include in your life composition. Whatever you identify and claim for yourself will become the internal compass of your life by consciously and subconsciously guiding all of the big and little decisions you make.

Invest in Yourself

In other words, a truly successful and fulfilling No Rules Retirement experience requires planning and preparation in all areas of life. Remember, health, happiness, and productivity are not blessings bestowed on a lucky few. Instead, they are the result of long-term life choices brought to fruition by the decisions made on a daily basis.  

As you think about your future and the kind of life you want to have, it is essential that you acknowledge the personal accountability aspects of both your current and future well-being. Always keep in mind that the essence of “the rich life” is the freedom to live in such a way as to support your values and priorities. And, in a nutshell, isn’t that truly what designing a No Rules Retirement is all about?

Reprinted by permission of Money Quotient, Inc.

There are few things worse than lying in bed at night, tossing and turning over financial stress. Lack of sleep only adds to our stress and hinders our overall mental, physical and emotional health!

Our money choices are linked to our life choices, and our life choices are linked to our money choices. This means that we have to find ways to reduce financial stress if we want to actively and intentionally manage our overall stress levels.

We don’t need to have all our debt cleared, loads of discretionary funds and everything figured out to have financial peace of mind. All we need is a plan, someone to support us in the journey and a way to identify stressors; this is how we fortify financial peace of mind.

We need to know where our money is going; tracking triggers change. As we track our money, learning where it comes in and where it goes out is not only a prudent practise but also loads of fun and deeply empowering. A major fear or stressor stems from not knowing how much money we have and why it doesn’t stay in our account.

It’s easy to fall into this position as we slowly acquire more bank accounts, retail accounts, debit orders and rewards schemes and see the prices of utilities frequently increasing. If we’re not tracking something as simple as our rates and water, we could be bleeding funds into municipal accounts that we weren’t 18 months ago.

Some strategies to cope with this involve more focused budgeting, whilst others could involve closing accounts and consolidating credit facilities. Everyone’s situation is unique, so it’s best to weigh up the different options inside of your own personal financial situation.

Many people also face the constant stress of not having sufficient medical cover. Whilst some plans are comprehensive, with regular changes in basic benefits, it’s not easy to always believe that we have the ‘best available’ cover. Private healthcare is expensive and mostly outside of the average budget, and if government healthcare is insufficient, medical cover products are essential.

There are myriad products available, from entry-level hospital plans and GAP cover solutions to all-inclusive medical aids. Still, there’s also a lot of stress that can be relieved by ensuring that you have a local doctor you trust and are happy to work with. Knowing where your nearest clinics and emergency rooms are and having a payment and admissions plan in place, should you or your family have a medical emergency, will also help fortify financial peace of mind.

Another challenge to our financial peace of mind is the anxiety around providing for our parents in their retirement. Many people who are currently close to – or already retired – are not comfortable discussing their financial situation with their family. This creates enormous stress and pressure on their children to have peace of mind that their parents have all they need to live comfortably in retirement.

Again – relieving this stress begins with identifying the problem areas and learning how to have constructive conversations that lead to plans and happier, more peace-filled sleep patterns!

In 1988, financial planner and best-selling author Venita Van Caspel wrote in her bestselling book Financial Dynamics for the 1990s:

“Our educational system continues to send forth our young with so little information about financial matters that they are like time bombs about to destroy their own and their families’ economic futures.  We equip them to earn good incomes and to live the good life, but we fail miserably as a nation to prepare them to know what to do with the money they earn.”

Now, more than three decades later, the implications of Van Caspel’s sobering commentary are more serious than ever before.  With the level of consumer debt skyrocketing and the cost of housing, education, and health care increasing at double digit rates, younger generations are facing unprecedented obstacles to achieving financial security.  In addition to these steadily climbing trends, we must now factor in unanticipated economic challenges brought on by the sudden onset of the COVID-19 Pandemic.  

Therefore, helping the young people we care about to learn effective money management skills, and to adopt good financial habits and attitudes, is more important than ever.  The first and most important step we must take is to examine our own money beliefs and behaviors, and then take action to get our financial lives in order.  Nothing is more effective in guiding the younger generation than providing a consistent and powerful role model.

Next, we must stay alert for teachable moments to share our financial expertise and wisdom. Very few topics affect us on a day-to-day basis like money, so there are endless opportunities to provide mini financial lessons via word and example.  

Lastly, commit to increasing our knowledge and awareness of ways we can encourage and equip the young people in our lives to lay the foundation for a successful and satisfying financial life.  Here are two great resources to help guide us in this mission: 

Make Your Kid a Money Genius (Even if You’re Not):  Best-selling financial author Beth Kobliner provides parents with a well-grounded guide to fostering a wise financial mindset and practical money skills throughout childhood and into young adulthood. 

The Opposite of Spoiled: Raising Kids Who are Grounded, Generous, and Smart about Money:  Author Ron Lieber believes that good parenting includes talking about money—a lot!  “When parents avoid these conversations, they lose a tremendous opportunity—not just to model important financial behaviours, but also to imprint lessons about what their family cares about most.”

Reprinted by permission of Money Quotient, Inc.

There is a thin veneer over everything. When we are distracted by news streams, overwhelmed by direct messaging and tired from keeping up with the Joneses, it’s easy to create a veneer that allows us to store and process more information without having to delve deeper into what’s actually going on beneath the surface.

It’s here that paradoxes are formed, and we can miss out on value when we aren’t able to dig deeper and find out more. Often, these paradoxes become most apparent in our later years, and we love to wax lyrical about how wisdom is wasted on the old and youth is wasted on the young.

Ultimately – we begin to accept (and awaken to) the opposite of so many things we once believed to be true.

Here are just a few of life’s paradoxes that can help us find more value and fulfilment in life.

Learn More to Know Less

This is also known as the knowledge paradox. That the more we know, the less we can clearly explain. Our inability to explain familiar concepts is a form of cognitive bias wherein experts often overestimate the ability of novices. As Einstein put it – the more I learn, the more I realise how much I don’t know.” 

This should be empowering, not frightening and should encourage us to embrace lifelong learning. Lifelong learners are built, not born. Choosing to keep learning is something we must actively do – it’s not reserved for some non-existent biologically elite.

Slow Down to Speed Up

Our parents and teachers would often say, “Less haste, more speed!”. Apart from being more mindful and present, slowing down gives us the time to be deliberate with our actions. We can focus, gather energy, and deploy our resources more efficiently. It allows you to focus on leverage and maximising returns.

When it comes to markets and investing, budgeting or risk management – this paradox is intrinsic to the sustainability of our planning.

Sprezzatura (“Simple is not simple.”)

The veneer of social acceptance places high praise on those who have the veneer of “having it all together.” The house, the family, the job, the investment portfolio…

Whilst the veneer may be entirely false, we need to remember that we see the end result, not the hard work that goes on behind the scenes. It takes more effort to make something appear effortless. Effortless, elegant performances are often the result of a large volume of effortful, gritty practice. 

Benjamin Franklin once said that when you are finished changing, you are finished. If we want to keep moving forward and thriving in times of hardship, we need to be dynamic and adaptable. Learning to adapt to the opposite of what we once thought true is not easy, but it’s a necessary step to find more value and more meaning in life.

In every culture and creed, there are traditions and philosophies about how to experience the best that life has in store for us, whilst overcoming trials and tragedies. From mindfulness to healthy eating, from exercise to stress management – we are often reminded that what we put in is what we get out.

Somewhere, in all of these pragmatic approaches, we can lose sight of the meaning of what we’re putting in, and become focused on the output. This is especially true when it comes to our money.

It’s not often that we attach meaning to money, and when we do, it’s attached to the money we have right now. We like to plan for the money we hope to have, but we are easily detached from the relevance and meaning because it’s a future goal.

This is where the Greek’s concept of Meraki is really helpful!

Meraki refers to the soul, creativity, or love that we put into our work, family, and other activities. It is the essence of yourself that you put into your work. It helps us find meaning in our money before we’ve earned it – not just for a future event.

There is a well-known quote by Kahlil Gibran – he said that “work is love made visible”. Meraki is all about a choice that we can make right now, today; a choice to find meaning in what we’re doing. When we love what we’re doing, or appreciate how it’s helping others (because some tasks will always be boring…), we will experience value and likely become considerably better at what we’re doing.

It doesn’t only help us enrich the day ahead; we can also start to include it in our planning. We can start to look for work and activity that we will truly find meaningful. When we pour our soul (blood, sweat and tears) into a project, we value the journey, not just the outcome. The whole experience becomes more purposeful and significant, allowing us to find fulfilment and be more creative.

Passion is a wonderful stimulant for maintaining positive mental health. Whenever we deal with people who truly love what they’re doing, whether they’re a barista or bookkeeper, an artist or an attorney, a teacher or a turner-and-fitter – people who are passionate are a pleasure to be around.

Remember, when it comes to making and managing your money, it’s not just about the meaning you get out – it’s about the meaning you put in.

The sandwich generation refers to working-age individuals who are in the precarious position of looking after their growing children and caring for elderly parents. 

They are effectively “sandwiched” between the responsibilities of caring for their children, who require financial, physical, and emotional support, and caring for their ageing parents, who may be unwell, incapable of performing certain activities, or in need of financial assistance.

Increasing lifespans and having children at an older age have contributed to the sandwich generation phenomenon, as it has more societal acceptance for adult children to live at home. With the added pressures of managing one’s own career and personal issues and the need to contribute to one’s own retirement, the individuals of the sandwich generation are under significant financial and emotional stress. 

In some cases, this generation has to postpone their own retirement planning because of the added financial obligations. There are some steps that members of the sandwich generation can take to lessen the burden. 

The first step is to have a financial discussion with all parties involved. For ageing parents, the expectation is that a lifetime of work has provided them with a pension or a nest egg that will help them cover part of elderly-care costs. If this is not the case, you should get assistance as soon as possible.

Even if finances are not currently an issue, they will become one unless you put proper attention into estate planning. If one family member is shouldering the majority of the burden of caring for an ageing parent, the estate should be discussed in that light. Although the sibling may not want to be financially compensated for their care, failing to confront the issue will almost certainly lead to bitterness among the family when parents pass away.

The goal for adult children is to encourage them to contribute financially to household costs and responsibilities, and move towards independence. There are several methods to promote this, but the simplest is to set the expectation that they will pay near-market rates for room and board. This eliminates the “mom and dad discount,” which permits them to live a more lavish lifestyle than their resources can sustain in the long run.

Many of those in the sandwich generation do not want to put their children in the same situation as they are. If you don’t want to rely on your children to care for you in the future, you should consider how you would pay for your own care. With the expense of care continuing to rise, it’s critical to start thinking about how you’ll pay for it now.

At the end of the day, there are no wrong or right ways, only paths of least resistance and greatest joy. Through communication, patience and understanding, you can make almost any situation work out for the best.

A breath of fresh air, the sun on our faces, bare feet in the sand. Spending time outside can provide many small pleasures, which all leave us feeling revitalised. Whether it’s sipping ice-cold lemonade in our backyard or hiking up a mountain, spending time in nature has numerous benefits beyond the obvious. 

There have been many studies outlining the positive mental effects of being immersed in nature. For example, the University of Michigan conducted a study that revealed students who regularly went for a nature walk had improved short term memory. Or consider this Stanford study, which found that walking outside reduces stress. Even if it’s just for five minutes a day, being outside has a calming effect on our brains.

Let’s take a look at some of the other benefits of being in nature.

Improved Sleep

Our body can better regulate sleep patterns when we spend time in natural light. When the sun sets, our brains release the proper amount of melatonin to aid in a restful night’s sleep. (Which is also why staring into a backlit cellphone screen before bed keeps our brain wired and makes it harder to sleep!)

Strengthened Immune System

Going outside and getting adequate sunlight has been demonstrated in studies to help enhance the immune system. Make time to go for a walk outside or have some fun in the sun to help you battle sickness and stay healthy.

Inspired Creativity

Spending time outside allows you to find inspiration in the beautiful sights, smells, and sounds of nature. Science backs this up as well, demonstrating that spending time outside can boost our ability to think more creatively.

A walk does not have to be solely for the purpose of walking. You could, for example, conduct your next one-on-one meeting while meandering through a park or walking to a coffee shop, thereby killing two birds with one stone.

If you don’t believe you have time, it’s possibly because you consider something as simple as a stroll around the park to be a chore or not income-generating. Or you regard it as a waste of time and effort that you simply cannot afford. 

Investing time in nature does not have to be complicated or costly. If anything – consider it an investment that you can’t afford to pass up!

Life is uncharted. Maps can only be made from where we’ve been – not where we have yet to go.

The only certainty is uncertainty, and we can experience potentially life-altering choices on a daily basis. Each nebulous choice we make brings with it a unique flood of thoughts and emotions. Yet, we generally adapt well, over time, to life-changing situations. This is, in part, thanks to resilience.

Psychologists define resilience as the process of adapting well in the face of adversity. As much as resilience involves endurance against difficult experiences, it also empowers us to grow and improve along the way.

Resilience is learned; it involves behaviours, thoughts, and actions that we can all develop. Improving resilience takes time and intentional effort, much like building a muscle.

To increase your capacity for resilience, here are four core components on which to focus: connection, wellness, healthy thinking, and meaning.

Connection

In the middle of challenges, connecting with empathic and understanding people may remind you that you are not alone. Concentrate on locating trustworthy and sympathetic people who can validate (or empathise with) your feelings, as this can help you develop resilience.

Wellness

Self-care may be a trendy buzzphrase, but it’s also a proven strategy for improving mental health and resilience. This is because stress is both physical and emotional. Positive lifestyle variables such as a healthy diet, adequate sleep, plenty of water, and regular exercise can help your body adapt to stress and lessen the impact of negative emotions like anxiety and sadness.

Healthy Thinking

How you think has a significant impact on how you feel and how resilient you are when confronted with challenges. Identify areas of illogical thinking, such as a tendency to catastrophise problems or a belief that the universe is conspiring against you, and replace them with more balanced and realistic thinking habits.

For example, if you’re feeling powerless in the face of difficulty, tell yourself that what occurred to you isn’t a predictor of what will happen in the future. You may not be able to affect the outcome of a highly stressful situation, but you can control how you understand and react to it. Remember, we can map out the past with amazing accuracy, but what happens in the next moment will always hold the potential for something radically new.

Meaning

You can gain a sense of purpose, promote self-worth, connect with people, and tangibly help others by volunteering at a local homeless shelter or just supporting a friend in need, all of which can empower you to build your own resilience.

Resilience is present in any aspect of our lives where we are facing adversity. Be it personal, financial or elsewhere. But the underlying principles of forging resilience are the same. Build a network of strong connections, focus on personal wellness, keep a healthy mindset, and find your meaning.

“But we didn’t need it, and we turned out fine.” 

We hear this line more than we should. From tap water to technology, from diets to devices, from gender identification to genetic modification, from schooling to selecting a coach or advisor, our peers and mentors can often throw this line in our face – but we didn’t need it, and we turned out fine.

It can leave our sails windless and stall our engines before we’ve even selected a gear.

But here’s the thing: the Fourth Industrial Revolution (4IR) poses one challenge that previous generations have never had to meet: prolific access.

Access to what? Everything.

One of the significant changes that we’ve seen in the world around us over the last two decades is the overwhelmingly enlarged access to information. Before the profuse use of mobile technology and cloud-based servers, data was stored in books and brochures, libraries and archives, making it harder to access. Now, we literally have the world (wide web) wirelessly at our fingertips. And those born this century have not known anything different.

Information is now so readily available that we have a new challenge: how do we find the valuable information that is relevant to us right now? On top of that, we have comparisons that we could never quickly draw before; like how the stock market performed last year, in 2008, 1998 and 1928. Heck, we can even compare the Bitcoin bubble to the Tulip bubble in 1636.

DIY is no longer about putting up new bookshelves in your bedroom; it’s about choosing, managing and prevailing on virtual shelves (platforms) for social engagement, investing, shopping, job hunting, learning, travel and just about anything else you’d like.

We are overwhelmed, our parents are overwhelmed, our children are overwhelmed.

The expectations are no longer what they were in 2004. Our opportunities are considerably more expansive, and the perceived consequences of ‘getting it wrong’ are infinitely more shareable. Now, the most dangerous words are: “We’ve always done it this way.”

We need to encourage each other to do things differently, to rely on experts, advisers, mentors and coaches to help us navigate this new revolution. These helpful people are not just for the wealthy or well-connected; they’re for all of us.

As our connections grow, we need to be willing to do the inner work of building our character and protecting our values. It’s not about changing fundamental truths; it’s about changing our perspectives about how big the truth really is.

Making decisions in the 4IR is no longer about extracting one choice, it’s about engaging in conversations.