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

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.