retirement planning

The Benefits Of Working Beyond the Typical Retirement Age

September 7, 2023 by Hans Blake, CFA, CPA

Reading Time: 2 minutes

The Financial Advantage

First and foremost, extending your career offers a significant financial advantage. Most jobs pay better than the retirement benefits that follow. By working longer, you can bolster your income, reducing the need to draw from your retirement savings. This, in turn, allows your nest egg to last longer.

For instance, if you retire at 70 instead of 62, you have eight fewer years of retirement to finance with your savings. This can translate to a more comfortable retirement lifestyle. Additionally, working longer provides you with an opportunity to save more, further strengthening your financial position.

Mental Stimulation and Social Interaction

Beyond financial considerations, working beyond the traditional retirement age offers vital mental stimulation and social interaction. Engaging in meaningful work can keep your mind sharp and active. It prevents the feeling of life becoming a waiting game, as Larry aptly puts it.

The human need for intellectual engagement and social connection remains a driving force. Continuing to work allows you to maintain a sense of purpose, contribute to society, and interact with colleagues, fostering personal growth and well-being.

Personal Fulfillment

Larry Siegel stresses how remaining intellectually active and engaged can be personally fulfilling. By continuing to write books, give talks, and interact with colleagues and clients, he not only sustains his mental acuity but also enjoys the sense of purpose and fulfillment that comes with it.

At Intelligent Investing, we understand that the transition into retirement can be challenging. Husbands and wives often have differing goals and concerns. Our mission is to unify families through effective financial communication, helping couples make a successful transition into retirement.

Explore our retirement resources on our website to gain valuable insights into this transformative phase of life. We are passionate about minimizing financial stress and maximizing the quality of life for our clients.

Larry Siegel Bio

Laurence B. Siegel is the Gary P. Brinson director of research at the CFA Institute Research Foundation and an author, consultant, and speaker on investment management and economics. Before retiring from full-time work in 2009 he was director of research at the Ford Foundation and, before that, head of research at Ibbotson Associates (since acquired by Morningstar). He attended the University of Chicago (BA 1975, MBA 1977). His book, Fewer, Richer, Greener, has been published by Wiley and is available, along with his other work, at https://www.larrysiegel.org.

Why People Stop Working Even When It Is Healthy For Them

July 20, 2023 by Hans Blake, CFA, CPA

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In this episode of Intelligent Money Minute, we had the pleasure of interviewing Larry Siegel, the director of the CFA Institute Research Foundation and a prolific investment management author. The discussion revolved around why people stop working even when it may benefit them to continue working. In this blog, Larry Siegel sheds light on the reasons behind early retirement and the potential benefits of working beyond traditional retirement years.

The History of Traditional Retirement Age

Larry Siegel explains that the age at which most people stop working, typically between 62 and 67, can be traced back to the 1880s when Chancellor Otto von Bismarck in Germany established the National Pension Scheme. This age has persisted through the establishment of Social Security in the US by President Franklin Roosevelt in 1935 and the subsequent eras of defined benefit and defined contribution pension plans. Tradition and inertia have played a significant role in preserving this retirement age. Additionally, physical limitations and a desire for easier work, which often coincide with age, have also influenced the decision to retire.

The research indicates that for physically demanding jobs, retirement in the mid-sixties may be appropriate. However, for those in less physically demanding roles, retirement at this age might be premature. The concept of retirement has evolved, and now many of us are engaged in think work, which does not necessarily require physical stamina. For such individuals, retirement at this age may be too early, as their skills and productivity could still be valuable to the workforce.

Lack of Flexibility in Retirement Decisions

Despite the potential benefits of continued work, many employees face challenges in transitioning to easier roles or negotiating part-time work arrangements. Rigidity in employment laws and established customs often limit the options for workers who wish to continue working beyond the traditional retirement age. The result is that many employees are forced to retire when they could still contribute meaningfully to the workforce.

The decision to retire should be individualized, considering the unique circumstances of each person and their specific employment situation. At Intelligent Investing, we believe in customizing financial strategies to suit our clients’ goals and preferences. We leverage our proprietary Intelligrations® to help our clients run various scenarios, such as unexpected health crises or part-time work arrangements, to achieve optimal financial outcomes. Our passion is to minimize financial stress and maximize the quality of life for our high-net-worth clients.

Larry Siegel Bio

How Inflation May Affect Your Retirement Distributions

November 10, 2022 by Hans Blake, CFA, CPA

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On today’s Intelligent Money Minute, we continue our conversation with Morningstar’s director of personal finance, Christine Benz on how inflation may affect your retirement distributions. One of the major questions that retirees face is how much to distribute from their portfolio in retirement. Retirees also want to know which buckets to distribute from first, and what happens if they withdraw too much during a downturn. During this episode, Christine Benz walks us through the impact inflation has on retirement planning and distributions.

At Intelligent investing, we love answering these types of questions. We perform various stress tests, we strive to use conservative assumptions, and we try to educate to improve investor behavior—all with the underlying passion of minimizing financial stress to maximize lives.

You may be unsatisfied with your current financial advisor or perhaps you’ve never worked with one before. You may find yourself with a lot of financial stress and would like a second opinion on your financial situation or portfolio. Don’t stress any longer than you need to when it comes to your financial picture.

Intelligent investing is a boutique wealth management firm serving high net worth individuals and families using Intelligrations™ and behavioral coaching. Consider requesting a complimentary no-obligation call or coffee with us.

Schedule a short discovery call or meeting

We’ll be interviewing Christine on several podcasts regarding retirement strategies, passive investing, and diversification, so be sure to subscribe to our Intelligent Money Minute podcasts.

Christine Benz Bio

Christine Benz is Morningstar’s director of personal finance and author of 30-Minute Money Solutions: A Step-by-Step Guide to Managing Your Finances and the Morningstar Guide to Mutual Funds: 5-Star Strategies for Success. She holds a bachelor’s degree in political science and Russian/East European studies from the University of Illinois. Christine lives in the Chicago suburbs with her husband, Greg. She is an avid cook, a political junkie, and a long-suffering Chicago Cubs fan. Follow Christine on Twitter.

Retirement Planning Is Boring?

September 7, 2021 by Hans Blake, CFA, CPA

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On today’s Intelligent Money Minute, we continue our conversation with Morningstar’s director of personal finance, Christine Benz on why retirement planning is boring. The last thing you expect to hear is that retirement is boring. Retirement finances and strategies can consume and overwhelm any pre-retiree couple. During this episode, Christine Benz explains how retirement planning can be simple and boring.

As Christine said, Doing the boring stuff such as saving and living below your means can really impact your financial future. Having both spouses working and saving for the same goals can be challenging, yet rewarding. Don’t be confused by other advisors that may confuse you into buying something you don’t need or want. If you are wanting a second opinion, we’d love to have a complimentary coffee or call with you to learn more about your concerns, struggles, and goals. If you want to learn more, you can click here to learn more.

Schedule a short discovery call or meeting

We’ll be interviewing Christine on several podcasts regarding retirement strategies, passive investing, and diversification, so be sure to subscribe to our Intelligent Money Minute podcasts.