Retirement's Most Unlikely Analogy

HOUSTON - May 28, 2014 - PRLog -- Retirement’s Unlikely Analogy

HOUSTON(May 28, 2014)—When Sharon Duncan, an independent financial advisor affiliated with Commonwealth Financial Network^® and president of Houston-based Selah Financial Services, Inc., explains to clients that retirement is like deciding to have a baby, it seems an unlikely analogy until she breaks it down for them.

Duncan explains that retirement looks like it should be an easy process but it can often be overwhelming when it comes to the actual details of how and when to retire.

“There is a ton of information, charts and figures out there about the mechanics to retirement planning but very little guidance about the emotions behind the decision to retire and the actual process,” says Duncan.

“Maybe more so with girls, but when children are young they think idyllically ‘Oh, someday I’m going to have two children; one boy and one girl.’  “As they get older and begin dating, they start to actually picture themselves as parents and also, who their partner will be in raising a child.

“Once people get to the point in their lives where they are considering marriage, they’ll have discussions with their fiancée/partner about how many kids they’ll have; when to have them; where the family will live; and whether both parents will work.”

In other words, the discussions begin to form a much more detailed plan, says Duncan.

“The same thing happens with retirement,” Duncan says. “Most couples at some point discuss what age they see themselves retiring. Young adults tend to view it as all bliss and the thinking is along the lines of ‘Someday I’m going to retire and own a house on a lake so I can fish.’”

Somewhere around mid-life, however, Duncan says people start developing more details about their retirement plan.

Just like in the baby scenario, if one person in the partnership suddenly decides they’re ready to have a baby earlier than planned, it can shock the other and leave them feeling ill prepared for the future, says Duncan.

This often happens with retirement, Duncan explains, when perhaps there has been downsizing in the company or something unforeseen happens at work causing discontent.  Thoughts began to wander toward spending time with grandkids, or that house on the lake, or they just want to have fun and travel.

“In this situation, emotions can be thrown for a tailspin for the other partner if it isn’t according to the agreed on retirement plan,” says Duncan.  “It’s important for families to think this process through and to be smart about decisions, while avoiding too many spontaneous changes to the plan.”

Ultimately though, if a person decides to retire earlier than planned, it’s just a matter of tradeoffs, says Duncan. “Anybody can retire any time, as long as what the person has to give up for early retirement is worth it to them.”

Duncan warns that another emotional aspect of retirement is making sure that there is an objective for one’s day-to-day activities.  “It turns out, having a purpose during retirement is the key,” says Duncan.  “You need to create the reason behind how you spend your day in order to have fulfillment.  Without purpose, the quality of life diminishes.”

After years of having discussions with clients about the right time to retire, Duncan and her advising team have formulated a process to help make this decision easier called FITT-Financial Independence Today~Tomorrow.

“FITT is allowing people to see in a much more tangible way than we’ve ever been able to show them before what their individual retirement will look like at the actual time of retirement, as well as much further down the line,” says Duncan. “It’s the best of both the logical and emotional worlds all rolled into one!”

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Selah Financial Services provides individuals and organizations with financial guidance since 2007. Located at 1550 W. Bay Area Blvd. Ste. 101 and 1 Sugar Creek Center Blvd., Ste.150, the advisors of Selah pride themselves on crafting unique strategies for each client. For more information, please visit www.selahfs.com. Securities and Advisory Services offered through Commonwealth Financial Network^®, Member FINRA/SIPC, a Registered Investment Adviser.