611 Druid Rd E • Suite 105 • Clearwater, FL 33756 • 727.441.9022
Meridian One Building • 4350 West Cypress Street • Suite 225 • Tampa, FL 33607 • 813.405.4846
DON’T RETIRE…REWIRE™
Many look forward to retirement. Others can’t imagine not
working because it is more about who they are, then what they do.
Either way there is a lot to consider and often it can be confusing and
overwhelming. Two common denominators regarding retirement
are wealth and health. Without sufficient assets and decent health,
the golden years could be tarnished.
There is no time like the present to add to the nest egg if you are
still working. Saving at least 10% of your income should be the goal.
Maintaining a healthy lifestyle should be a lifelong project. Make
sure you have a good exercise program and see the doctor regularly.
Do you see yourself working and dying at the desk, or do you
see yourself thinking about sleeping in every Monday through
Friday? Makes no difference as the third common denominator is
restructuring your life or as we like to refer to it – you need to REWIRE.
Okay, let’s admit it, the idea of not setting the alarm clock to go
to work every day, not opening the computer for emails with that
first cup of coffee, not eating lunch at the same places, not making
that daily commute, etc. may seem appealing. But suddenly the
structure you have had in your life for 40 years or more collapses.
We all need and want some degree of structure.
For the first few months, you have lots to keep you busy around
the house with all of those projects you always wanted to do, but
just couldn’t find time while you were working. What happens
when they are all done? Maybe you visualize playing golf or fishing
more, seeing the family more frequently, volunteering, or maybe
even starting your own business part time. However, more often
than not there is only so much of anything that you can do on a
sustained basis. In fact, some folks love their new found freedom so
much they resist structure, but that in and of itself is still structure.
One of the basic fabrics of living is to have a routine. It is so
important that many times we have one and don’t realize it because
90 TAMPA BAY MAGAZINE | MARCH/APRIL 2019
V. Raymond Ferrara, CFP®
Chairman
Chief Executive Officer
Eric R. Ebbert, MBA, CFP®
President
the actions become innate. When you get ready for the day, don’t you
follow a routine in the bathroom and get dressed a certain way each
day? These are just two small examples of our need for structure.
First, if you do not have a personal and financial plan, now is the
time to do one. Things are going to be quite different and a plan
will bring some balance to the uncertainty of where to live, what to
do, how to invest, setting up a cash flow to replace the paycheck,
leaving co-workers behind, making new friends, creating new
support systems, wondering about medical insurance, etc. A plan
should help eliminate anxiety and make life more predictable. The
plan needs to be written so you and your spouse have it handy
for reference.
REWIRING is not easy. Let’s concentrate on the financial side.
Have you lived with a budget while working? If so, this step will be
easy. If not, it is time to do one because there is no paycheck anymore.
Some expenses will be reduced or eliminated and new ones will
show up. Divide the budget into the fixed expenses (household,
medical, transportation) and match those with predictable cash
flow (pension, Social Security) and variable expenses (travel,
entertainment) matched with variable income from investments.
Simplify. Consolidate bank, investment and retirement accounts.
Examine your tolerance for risk. Even if you have had a high tolerance
in the past, do you really need to take that higher risk in retirement?
Only take as much risk as necessary to maintain your lifestyle. Keep
15-18 months of cash flow needs in cash assets. When the market
goes down, you will not be forced to sell the investments as you
can use the cash.
There is so much more to consider. You will likely only plan for
retirement once, but we do it every day with our clients. Let us
help you. Why not visit us in our Tampa or Clearwater office for
a complimentary meeting to learn more about how to REWIRE.
About ProVise Management Group, LLC: ProVise is a financial planning and investment management firm registered with the Securities and Exchange
Commission (SEC) and has been in business since 1987. Our 14 professional advisors serve approximately 1100 clients in over 30 states. As of 12/31/18 we were
managing approximately $1.4 billion for our individual, corporate, not-for-profit and 401k retirement plans. Please visit our website at: provise.com. Investment
Advisory Services offered through ProVise Management Group, LLC. The information herein is general and educational in nature and should not be considered
legal or tax advice. Tax laws and regulations are complex and are subject to change.