Today’s video is an interview with Chad Willardson, president and founder of Pacific Capital in California. Chad is a certified financial fiduciary and a chartered retirement planning counselor. He has a lot of experience helping people live their ideal retirement and retire well.

Some of the topics we discuss are the differences between retirees who have retired well and those who struggle. Chad also shares a little bit on retirees that have continually grown their purpose and their significance in retirement. Lastly, he shares how to pass values onto your kids and grandkids because as important as the money part is, wisdom is even more important.

Differences Between Being Successful in Retirement and Struggling

Those who are successful focus on the cashflow and that’s their main focus. I think those who are unsuccessful often focus on a lump sum number. They hyperfocus on some arbitrary value of assets and they feel that once they hit that number that they can retire. Those who are really successful are looking at the cash flow planning, their budgeting, income from investments, passive income, real estate income, and they have a handle on what they’re going to spend and what they can earn.

One other trait of the unsuccessful is that they get caught up with whatever is happening in the news, and will shift their investment strategy based on the scary headlines. Sometimes that can cause a very permanent outcome in what they do with their money, which then leads to a much lower cash flow, which then causes a real harm to their lifestyle spending opportunities.

Ignoring the Talking Heads

When it comes to the talking heads on your tv, try to focus on what’s within your control – your spending and spending commitments, memberships, subscriptions, etc. It can be scary to go off the payroll in a sense and become retirees and just live off your assets or your passive income. That’s a big jump.

You’re used to getting a paycheck and going to work, and now you’re constantly asking yourself, do I have enough? That’s the question that will perpetually be in your mind causing anxiety and stress until you’ve gone through some very thorough planning to test that. Look at the cash flow, look at your expenses, look at your taxes. How much income can you rely on?

We certainly don’t discount the big concerns: inflation, interest rates changing, housing market, the depression or recession that may be looming in the background. These are real concerns, but they’re outside of your control. As you’re looking at your retirement plan, you’ve got to focus on things that you can make changes in.

Sense of Purpose In Retirement

You’ve got to retire to something, not just retire from something. As you retire, you need to have a game plan of what you’re going to do. Write out a list of things you’re excited about, new hobbies you’re going to pick up on. Do not just cut the cord and jump. Retirement could be a third of your life. Can you imagine just aimlessly waiting to die for 20 to 30 years? It just doesn’t make sense. Use your wisdom in your experience to do something creative and good. There’s a lot that could be done beyond your full-time career when that’s up.

Creating a Legacy Plan

There’s a lot to be passed on and inherited beyond financial assets. People really do care about passing on a legacy of values and principles, and stories. To be successful and to have an abundant mindset is to be generous and to not believe that money is scarce and that opportunity is a zero-sum game. If you’ve got an abundance mindset and you’re generous, why not teach that to the next generation?

Whether that’s starting a charitable foundation, asking your kids and grandkids, “What causes do we care about as a family? What can we give money to? More importantly, what can we give time and service to?” Think about ways of creating a legacy plan for your family in retirement. What could I do and utilize my abundance of time and money and resources to really leave a lasting impact on the next generation?

Is Retirement Ever the Wrong Choice?

Is not retiring, even if someone has the financial means to and the ability to, ever a good option? You can certainly set up your business in a way that allows you to focus on the few activities that really give you energy.

If you have that fortunate opportunity to be a successful entrepreneur and create your lifestyle and schedule, there’s a way to stay engaged without selling your company or stepping down.

Information Overload

Beware of information overload. Just like with fad diets, there are a lot of fad retirements. There are a lot of myths out there. Be aware of making significant financial decisions without good counsel. There’s a lot of value in getting multiple opinions before you make any big decisions.

Disclaimer: Since we don’t know your specific situation, none of this information should be construed as tax, legal, financial, insurance, financial advice, or other advice and may be outdated or inaccurate. It is your responsibility to verify all information yourself. This content is prepared for entertainment purposes only. If you need advice, please contact a qualified CPA, attorney, insurance agent, financial advisor, or the appropriate professional for the subject you would like help with. Streamline Financial Services, LLC or its members cannot be held liable for any use or misuse of this content.

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Disclosures: Securities offered through LaSalle St. Securities LLC (LSS), member FINRA/SIPC. Advisory services offered through LaSalle St. Investment Advisors LLC (LSIA), a Registered Investment Advisor. Streamline Financial Services is not affiliated with LSS or LSIA. LSS is affiliated with LSIA.