retirement

To Retire, Mind Your P's: Purpose, Planning and Procrastination

Focusing on those three basic concepts will keep you out of trouble, even if you're in the "retirement red zone."

Financial industry insiders use so much jargon that at least two websites — TheStreet.com and Investopedia.com — have posted their own glossaries for investors seeking clarity.

Which is why you can’t procrastinate.

When I give a seminar, I’ll often ask the participants to raise a hand if life has never kicked them in the teeth. Not a single hand goes up. And yet, so many people enter retirement without a thought beyond GROWTH. They’re so set in their ways after years in the accumulation phase, they can’t switch their brains over to the strategies needed to survive and thrive in the distribution and preservation phase. Or, on the flipside, they haven’t thought nearly enough about saving. If you’re waiting until you’re in your 50s or 60s, that’s a lot of catching up to do.

A few years ago, Prudential coined the term “retirement red zone” to describe the critical years immediately before and after retirement, when finances are most vulnerable to adverse market movements. Of course, Prudential was selling its financial products — but the term resonated because it touched on something real. If the market turns and you’re in the red zone, you may not be able to retire when you hoped or, if you’re already retired, you might have to go back to work.

We saw it in 2000 and 2008, and it likely will happen again. But it doesn’t have to happen to you.

The secret? Stop procrastinating, and pursue a plan with purpose. Make that your mantra, and get moving.

*Guarantees provided by insurance products are backed by the financial strength and claims-paying ability of the issuing insurance carrier.

Kim Franke-Folstad contributed to this article.

About the Author

Michael Martin, Investment Adviser Representative

Co-Founder, Legacy Financial Partners

Michael Martin is the co-founder of South Florida-based Legacy Financial Partners, where he is the director of investments and insurance. He is a fiduciary and holds his Series 7 and Series 66 securities licenses. He also maintains life, health and variable annuity licenses in Florida, West Virginia, North Carolina and Illinois.Securities and advisory services are offered through, Madison Avenue Securities, LLC ("MAS") Member FINRA/SIPC and a Registered Investment Adviser. MAS and Legacy Financial Partners are not affiliated entities.

Most Popular

The 25 Cheapest U.S. Cities to Live In
places to live

The 25 Cheapest U.S. Cities to Live In

Take a look at our list of American cities with the lowest costs of living. Is one of the cheapest cities in the U.S. right for you?
August 7, 2022
Your Guide to Roth Conversions
Special Report
Tax Breaks

Your Guide to Roth Conversions

A Kiplinger Special Report
February 25, 2021
Kiplinger's Weekly Earnings Calendar
stocks

Kiplinger's Weekly Earnings Calendar

Check out our earnings calendar for the upcoming week, as well as our previews of the more noteworthy reports.
August 12, 2022

Recommended

Beware the Caller From “The Government”: It’s a Scam
Scams

Beware the Caller From “The Government”: It’s a Scam

Scammers' persistence is matched only by their insolence: They even try to impersonate the very agencies trying to stop their grift.
August 11, 2022
What Hidden Obstacles May Snag Your Retirement? 5 Key Points to Consider
retirement

What Hidden Obstacles May Snag Your Retirement? 5 Key Points to Consider

To avoid getting hung up unexpectedly, plan for retirement using the “TRICK” method, which stands for taxes, risk tolerance, investment mix, costs and…
August 6, 2022
Tech Support Fraud Targets Seniors
retirement

Tech Support Fraud Targets Seniors

Get a message offering help with a computer problem you didn’t think you had? It’s probably a scammer looking for your money and personal information
August 5, 2022
Will a Recession Affect Your Retirement? How to Take Action Now!
retirement

Will a Recession Affect Your Retirement? How to Take Action Now!

A bear market or an economic downturn can be scary, especially for retirees. However, solid financial plans are built to withstand these challenges. H…
August 5, 2022