Retirement Planning vs. Life Planning

Not your grandad's golden years.

People do not retire. They are retired by others. ~Duke Ellington

Retirement is usually held up as something we all must prepare, plan and save for because it’s the ultimate, natural end-game. However, there is nothing natural about it. In fact, the concept of leaving the workforce at a certain later age and having the money to support oneself was originally a socialist idea! It was adopted by the United States government in the early 20th century as a means to force older workers out of the workforce so there would be room for younger workers. The government then sold the idea to all Americans, branding it as the reward for decades of hard work which spawned many new industries and the rise of Florida as the go-to retirement destination. Though we may think of this as completely normal, it’s only been a popular model for a couple of generations. (The New York Times has this great overview of the history of retirement.)

We’re not fans of the idea of retirement or the notion of retirement planning. It suggests the end of life as you know it or the end of life, period. It’s off in the future, some idealized “some day.” If the picture of that “some day” isn’t your own, or if you don’t find value in delayed gratification, retirement planning may be stressful, painful, or impossible. Some people give up and give in to the pitfalls and distortions of their natures, trapped by self-imposed ceilings. Many people never become aware of living like this, but others do. Each scenario is equally tragic.

We favor the idea of life planning which includes the goal of financial independence plus room to keep living and growing beyond any one financial level, life stage, or age limit set by legislators. Life planning is in the present. It’s a process powered by your intrinsic motivation rather than discipline, which is a lot more comfortable. Our approach begins at the core of who you are rather than a foundation of external factors. Life planning is about being fully alive, growing and developing, and evolving with your money.

Our goal is to help you create and practice a financial strategy that looks out for all your needs, wants, goals, and aspirations. That starts right now and keeps a healthy eye on the future. That’s using your money to support your life as it unfolds, expands, and evolves.

Age in unimportant. Good planning is about what we’re being called to do now and getting on with it.

Disclosures: The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. They do not necessarily reflect the views of LPL Financial. No strategy or process assures success or guarantees against losses.