Three times a week, every week, we add to the Slott Report. Two article entries and a mailbag. All factual, measurable information. “This is what to consider when you name a trust as your beneficiary.” “How much can a sole proprietor contribute to a SEP account?” “This is how you fix an excess IRA contribution.” On and on it goes. All excellent, helpful material.
But what is the end game? Why do we wade through the morass of IRS rules and complicated legislation and oftentimes fantastically dry data? It is an overall effort to help people reach and create a “successful retirement.” But what does that mean? What is retirement? Fantasyland says a person works a job for 40+ years and saves a little annually through IRA contributions and 401(k) salary deferrals. And when this person stops working at age 65, he can ride off into the sunset and do all the things he wanted to do previously, but could not because he was tied to a desk or a mop or a piece of heavy construction equipment.
A few people may still fall into this category — workers who maintain steady employment at a single company followed by blissful retirement. But that ain’t the case for most of us. Research shows the average person will have 12 jobs during his or her lifetime. Also, in March 2023, the Bureau of Labor Statistics reported that only 56% of civilian workers participate in a retirement plan. All of us are searching for the right professional, personal and financial combination. How can I keep a roof over my head, food on the table, do the things I enjoy today, but also sleep comfortably knowing my future – my “retirement” years – will be waiting for me?
For those who find gratifying employment and mental solace, congratulations are in order! For most, it’s a never-ending search. The Dirty Heads have a song called “Vacation.” The lyrics say: “A-a-ay, I’m on vacation. Every single day ’cause I love my occupation. A-a-ay, I’m on vacation. If you don’t like your life, then you should go and change it.”
I agree. If you don’t like where you’re at, do everything in your power to change it, because fantasyland retirement will not mystically appear at age 65. Create a budget. Meet with a financial advisor. Go back to school. Develop a plan. Maintain a long-term view. Yes, this is boring, real-life stuff. But if you stick to the plan, it will bear fruit. By sticking to the long-term plan, short-term gratification opportunities should present themselves.
Recently I was presented with my own short-term “live for today” opportunity. My son is spending his freshman year studying abroad in Florence, Italy, and my wife and I were able to visit. We wore out a big part of the country — Venice, Rome, Pisa, Florence, Cinque Terre. Daily step counts reached 27,000. At one point, breathing heavily and ascending a long, steep gravel hill in Boboli Gardens, my wife said, “Good thing we came here while we’re young. No way I could climb this if I was retired.”
And thus, this Slott Report entry was born. Fantasyland says every septuagenarian energetically bounces around Europe. Reality tells us otherwise. (Run a Google image search for “elderly couple asleep in gondola.”) While we all must deal with everyday obstacles, it is imperative to put your best foot forward. We only get one shot at life. Face reality and create positive change, because “blissful retirement” as it’s portrayed is not promised — nor will it magically appear.
Specializing in private wealth management, we provide education, guidance, and strategies to help you achieve a tax-efficient retirement income.
Specializing in private wealth management, we provide education, guidance, and strategies to help you achieve a tax-efficient retirement income.
Investment advisory services offered through Donato Wealth Management, PLLC, dba Empower Wealth Management and Empower Wealth & Tax (“Empower Wealth Management” or “EWM”),
an SEC registered investment adviser that only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting.
The information presented is believed to be current. It should not be viewed as personalized investment advice. All expressions of opinion reflect the judgment of the authors on the date of publication and may change in response to market conditions. You should consult with a professional adviser before implementing any strategies discussed. Content should not be viewed as an offer to buy or sell any of the securities mentioned, or as legal or tax advice. You should always consult an attorney or tax professional regarding your specific legal or tax situation. Personal investment advice can only be rendered after the engagement of EWM, execution of required documentation, and receipt of required disclosures. All investment and insurance strategies have the potential for profit or loss. Asset allocation and diversification will not necessarily improve an investor’s returns and cannot eliminate the risk of investment losses. Past performance is no guarantee of future results. For more information, please go to https://adviserinfo.sec.gov and search by our firm name or by our CRD #305031.
Insurance products and tax services are offered through Senior Tax and Insurance Advisors, PLLC, dba Empower Wealth Group (“Empower Wealth Group” or “EWG”). Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products. They do not in any way refer to investment advisory products offered through EWM. Rates and guarantees provided by insurance products and annuities are subject to the financial strength of the issuing insurance company; not guaranteed by any bank or the FDIC. EWG is not affiliated with or endorsed by the U.S. Government, Social Security Administration, nor the federal Medicare program. You may be contacted by a licensed insurance agent. Calling the number above will direct you to a licensed insurance agent. EWG may not offer every plan available in your area. Any information provided is limited to plans available in your area. Please contact Medicare.gov or 1-800-MEDICARE.
EWM and EWG are both affiliated companies of Empower Wealth, LLC (“Empower”). Investment adviser representatives of EWM may have a financial incentive to recommend tax and insurance products and/or services offered through EWG which presents a conflict of interest. This conflict is addressed by EWM’s adoption of its Code of Ethics, which requires that all EWM’s Associated Persons place the interest of clients ahead of their own. Clients of EWM are also free to choose their own tax and/or insurance professionals and are under no obligation to utilize the services offered through any related entities or persons associated with Empower.
Strategic Partners listed on this page are not employees of EWM and are not affiliated through common ownership.
We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all of your options.
© Empower Wealth Management All Rights Reserved.
