McKee Financial

2-17-2020 Newsletter: Retirement Is a Beginning

Retirement is a new beginning, but is it right for you?  We've been trained that retirement is the goal, but there are many reasons you might choose to stay in the workforce a little longer than initially expected.  Take a moment and answer the four following questions, the answers might surprise you. 

 

Retirement Is a Beginning

 

See if you are prepared to begin your retirement by answering four key questions.

 

Provided by  C. Brian McKee, RFC®, CKA®

  

How do you know you are psychologically ready to retire? As a start, ask yourself four questions.

  

One, is your work meaningful? If it is emotionally and psychologically fulfilling, if it gives you a strong sense of purpose and identity, there may be a voice inside your head telling you not to retire yet. You may want to listen to it.

 

It can be tempting to see retirement as a “finish line”: no more long workdays, long commutes, or stressful deadlines. But it is really a starting line: the start of a new phase of life. Ideally, you cross the “finish line” knowing what comes next, what will be important to you in the future.

  

Two, do you value work or leisure more at this point in your life? If the answer is leisure, score one for retirement. If the answer is work, maybe you need a new job or a new way of working rather than an exit from your company or your profession.

 

An old saying says that retirement feels like “six Saturdays and a Sunday.” Fantastic, right? It is, as long you don’t miss Monday through Friday. Some people really enjoy their careers; you may be one of them. 

  

Three, where do your friends come from? If very little of your social life involves the people you work with, then score another point for retirement. If your friends are mainly your coworkers, those friendships may be tested if you retire (and you may want to try to broaden your social circle for the future). 

  

At a glance, it might seem that an enjoyable retirement requires just two things: sufficient income and sufficient return on your investments. These factors certainly promote a nice retirement, but there are also other important factors: your physical health, your mental health, your relationships with family and friends, your travels and adventures, and your outlets to express your creativity. Building a life away from work is a plus.

   

Four, what do you think your retirement will be like? If you think it will be spectacularly different from your current life, ask yourself if your expectations are realistic. If after further consideration they seem unrealistic, you may want to keep working for a while until you are in a better financial position to try and realize them or until your expectations shift.

     

Ideally, you retire when you are financially, emotionally, and psychologically ready. The era of the “organization man” retiring with a gold watch and a party at 65 is gone; the cultural forces that encouraged people to stop working at a certain age aren’t as strong as they once were. 

  

Why you are retiring is as important as when you choose to retire. When you are motivated to retire, you see retirement as a beginning rather than an end.

        

C. Brian McKee may be reached at 812-477-8522 or brian@MckeeFinancialResources.com www.MckeeFinancialResources.com

 

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

 

Registered Representative, Securities offered through Cambridge Investment Research Inc., a Broker/Dealer, Member FINRA/SIPC.   Investment Advisor Representative, Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor.  Cambridge and McKee Financial Resources Inc. are not affiliated. 
 

 

Interesting Economic Facts

 

CORONAVIRUS IMPACT - China is forecasted to use 25% less oil per day in February 2020 when compared to its actual usage in February 2019.  That is a drop of 3.2 million barrels a day, i.e., from a consumption of 12.9 million barrels a day to 9.7 million barrels a day (source: International Energy Agency). 

 

OIL DEMAND -The price of West Texas Intermediate crude oil closed at $63.27 a barrel on Monday, 1/06/20.  It has since fallen 18% to $52.05 a barrel as of the close of trading last Friday, 2/14/20(source: NYMEX). 

 

HARD TO ENJOY RETIREMENT - More than half of American workers (54%) have not started a defined contribution retirement plan at work (e.g., a 401(k) plan) or have access to a defined benefit pension plan funded exclusively by their employer (source: Center for Retirement Research at Boston College).

 

MARTHA STEWART -The House passed HR # 2534 on 12/05/19 and has moved the legislation onto the Senate.  The bill explicitly defines and prohibits “insider trading,” i.e., the profiting from non-public information.  There is no federal statute in existence today that prohibits “insider trading” (source: Insider Trading Prohibition Act).

 

EVERY DAY - An estimated 10,800 Americans will turn 65 years old each day this year (2020).  This group represents the 10th year of 19 years of “Baby Boomers” turning age 65.  An estimated 11,500 Americans will turn 65 years old each day in the year 2029 (source: Government Accountability Office).

 

EXPENSIVE EDUCATION - Outstanding student loan debt in the USA was $1.51 trillion as of 12/31/19, up +110% from $720 billion as of 12/31/09 (source: Federal Reserve Bank of New York). 

 

PRETTY OPTIMISTIC - The Office of Management and Budget released a forecast on 2/10/20 that projects US tax receipts increasing from $3.464 trillion in fiscal year 2019 to $6.378 trillion in fiscal year 2030, an increase of +84% over 11 years.  Over the last 11 years, i.e., fiscal year 2008 to fiscal year 2019, actual tax receipts increased +37% from $2.524 trillion to $3.464 trillion (source: Office of Management and Budget).

 

E.U. AND USA - The 27 nations that comprise the European Union (post-Brexit) have a population of 446 million and a combined economy of $18 trillion.  The United States has a population of 329 million and an economy of $22 trillion(source: Census Bureau).

 

NEW HOMES - The construction of 888,100 new single family homes began in 2019, the 8th consecutive year of increasing home building.  In the decade of the 2010s, 6.8 million new homes started construction, down 44% from the 12.3 million new homes that were started in the decade of the 2000s (source: Census Bureau).

 

...and for the History Lovers... This Week in History

 

February 17, 1938

The first color television is demonstrated at the Dominion Theatre in London.

 

February 18, 1945

The United States Marine Corps storm ashore at Iwo Jima.

 

February 19, 1925

President Calvin Coolidge proposes the phasing out of inheritance tax.

 

February 20, 1962

Mercury astronaut John Glenn becomes the first American to orbit the Earth.

 

February 21, 1878

The world's first telephone book is issued by the New Haven Connecticut Telephone Company containing the names of its 50 subscribers.

 

February 22, 1942

President Franklin Roosevelt orders Gen. Douglas MacArthur to leave the Philippines.

 

February 23, 1846
The Liberty Bell tolls for the last time, to mark George Washington's birthday.

 

Source:  website: Historynet.com 

 

Side bar about this week in history.  John Glenn made history on February 20, 1962 becoming the first American to orbit the Earth.  He was also a Marine Combat pilot that flew 59 missions in the South Pacific during the time his fellow Marines were raising the flag at Iwo Jima. 

 

 

 

McKee Financial Resources Inc.

Ph 812-477-8522 / Fx 812-477-8521

Email:  brian@MckeeFinancialResources.com

 

Evansville Office:

McKee Financial Resources Inc.

727 N. Cross Pointe Blvd.

Suite C

Evansville, IN 47715

 

Bloomington Office:

McKee Financial Resources Inc.

Graham Plaza, Suite 014

205 N. College Ave

Bloomington, IN 47401

 

Indianapolis Office:

McKee Financial Resources Inc.

48 N. Emerson Avenue

Suite 300

Greenwood, IN 46143

 

Securities offered through Registered Representatives of Cambridge Investment Research Inc., a Broker/Dealer, Member FINRA/SIPC. Advisory Services offered through Cambridge Investment Research Advisors, Inc., a Registered Investment Adviser. McKee Financial Resources Inc. and Cambridge are not affiliated.

 

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