KEY TAKEAWAYS• Finances aside, make sure you and your spouse are in sync about retirement. It’s never too late to start a rewarding second (or third) career.• Your spouse might want to continue working and/or need time to adjust to having you around the house more.• Don’t underestimate the importance of where you’ll live in retirement. You may have to choose between ideal climate and lifestyle vs.

proximity to friends and family.• What does your ideal day look like in retirement? If you’re not sure, revisit the 5 W’s.

ENGINEERING YOUR RETIREMENT: PART FIVESHOULD I RETIRE NOW IF I CAN AFFORD TO?

Erik Dullenkopf, CFP®

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fter decades of stressful work days, endless meetings, impossible deadlines, restructurings, and constant pressure from management to do more

with less, the idea of cashing in your chips and gliding into retirement can be tempting. But, as the old saying goes— “Be careful what you wish for; you just might get it.”

No matter how long you’ve been planning for your post-working life, retirement can be a shock to the system when you suddenly have an extra 40 to 60 hours a week of free time on your hands. Research shows that “freedom of time” is the thing people most cherish about retirement. At the same time, “staying occupied/avoiding boredom” is the biggest worry.Even if you’re lucky enough to retire at a young age, many of your friends and peers won’t be in the same position. Tuesday mornings on the golf course or ski slopes can get very lonely, no matter how beautiful a day it is.GET IN SYNC WITH YOUR SPOUSENo matter how well-cushioned your retirement nest egg is, make sure your spouse is ready for you to be retired—really ready. Even very active retirees find themselves hanging around the house a lot more than they used to, especially on weekdays between 8 and 6. Remember how

disoriented you felt when you were laid-off or on disability leave? Early retirement can be similar, except you don’t have a specific purpose such as networking and looking for a new job. Researchers at Bowling Green University call it “Retired Husband Syndrome”—noting that the divorce rate for couples over 50 has more than doubled since 1990. It’s important for couples to discuss their retirement dreams with each other and write them down. Mark each item on your list as a “must have,” a “want” or a “wish.” Be ready to compromise. The following case study involves hypothetical couples, with various realistic experiences. Due to the complexity of each scenario, we have combined them and are providing the solutions that were most applicable to their situation. The strategies provided may not be specific or applicable to your situation.REAL WORLD EXAMPLEOne successful couple we work with has been together for 20 years (Peter is 60 and Pam is 45). Their age difference isn’t that unusual, their divergent relationship with work was starting to affect their relationship with each other. That’s when we knew Peter and Pam had to take some concrete steps to address their respective needs and wants.

Your life plan is just as important as your financial plan. Make sure you have considered the 5 W’s

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After a long and successful career, Peter lost his engineering job about three years ago and hasn’t been able to find a new position with comparable pay and responsibility. Peter thought about consulting, but more and more of his time was devoted to helping his siblings care for their elderly mother nearby. After factoring in the cost of eldercare—and the limited size of his mom’s estate—it was very beneficial for Peter’s family (both financially and emotionally) to have him overseeing the mother’s long-term care. Without Peter’s efforts, he and his siblings would have been forced to dig into their own pockets to pay for their mother’s care if she lives another two years. Meanwhile, Pam still enjoys her job and would like to continue working another five years. She likes her co-workers and still has career goals to pursue. Also, by continuing to work, Pam can keep Peter on her health plan until he is eligible for Medicare at age 65. By having Pam delay retirement, the couple will have more income left for their big “bucket list” trips in five years and they can enjoy plenty of three-day weekends and regular vacations until then.LOCATION, LOCATION, LOCATIONDeciding where to live is another key retirement consideration that many folks overlook. You are no longer constrained by commuting and proximity to your job. That’s extremely liberating. You may want to move closer to the coastline where the air quality, scenery and weather is more desirable—but it’s also more expensive and further from your colleagues, friends and family. Could that extra money you’re spending on your coastal dream house be better spent on “bucket list” vacations? Would staying put allow you to help your extended family with childcare and eldercare expenses and strengthen the bond between generations? Only you can make these important decisions. Later in this article, we’ll share some exercises for making the process less daunting.A SECOND CAREER (AND THEN SOME)Many of our clients are highly compensated engineers or other skilled professionals who are passionate about what they do. They don’t just punch time clocks. They feel strongly about leaving their companies in good hands when it comes time to “pass the baton” to their successors. From a mentoring and knowledge transfer perspective, many of our clients find they enjoy consulting in their early “retirement” years. Some also do it for financial reasons if they were let go from their employer a few years earlier than they had planned to retire. Others pursue consulting because they find it gratifying to use their expertise, keep their skills sharp

and give back to the profession. I have one very entrepreneurial client—a former engineer in his mid-60s--who started a large business serving energy production companies. He’s all in. He’s hiring aggressively, actively pursuing new clients and recently purchased a building to house his burgeoning enterprise. Suffice it to say, this business is more than just a hobby or “side hustle” for him. THE 5 W’SWe don’t put together strict time management plans for our clients, but we have many, many conversations about the 5 W’s of Retirement planning: Who, What, When, Where, Why (and How).WHO are you going to be spending your newfound free time with? Family, friends, etc.WHAT are you going to do? Help out your extended family? Travel more? Get more involved with a church, organization or school you’re passionate about? How about physical activities you enjoy such as golf, sailing or road biking?We’ll talk more about the 5W’s later in this article. Research has found that the key to a happy retirement isn’t how much free time you have; it’s how you manage the free time you have. Maintaining a rough schedule can help you avoid getting bored, depressed or lonely. Organize your activities on a daily and weekly basis — just don’t be too rigid. Hourly scheduling like you had during your prime working years can be overkill and create too much stress.YOUR PROFESSION IS NOT YOUR IDENTITYDuring our pre-retirement sessions, some clients admit that they have no hobbies. After the past several decades of career and family obligations, they never had time for hobbies or extensive travel and they’re not sure what to take up. It’s hard to be a beginner at any age--even harder when you reach your golden years. Sure they could start golfing, but that’s hard if you’re not passionate about the game and feel foolish on the course when everyone else you know has been playing for years. Trust me. You don’t want to retire without having something else you’re passionate about besides work. The years leading up to retirement are an ideal time to “test drive” new hobbies or passions such as playing an instrument or learning a craft—activities you never had time to pursue during the peak of your career. Pre-retirement is also a great time to discover new passions, by taking classes in your area or finding one-on-one instructors. Check out local colleges for adult education and continuing education courses as well.

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Also remember to be realistic. Even here in health-conscious California, the mind and body slow down as we age. Many hard-charging new retirees think they’ll finally have enough free time to train for a marathon, century ride, Ironman triathlon, or a full-court basketball league they’ve always dreamed about. They may have the time to train in this new stage of life, but their bodies often won’t let them without constantly breaking down. Nobody wants to spend their early retirement years in and out of physical therapy or the sports medicine office.ENVISION YOUR RETIREMENTOne of the first things we do in my workshops with pre-retirees is get them to visualize what their ideal retirement looks like. They may know they want to retire at a certain age, but financial issues aside, if they haven’t thought about how they want to spend their time, it could be a difficult transition no matter how much money they have socked away.To paraphrase baseball legend Yogi Berra, “If you don’t know where you are going, how do you expect to get there?” To help answer that question, we start with worksheets like the one below:

When visualizing your own retirement, it may also help to think about someone that you know who is happily retired. What did that person “do” when they retired? What is their new lifestyle like? We also ask participants to think about what they need to feel happy and satisfied — financially, emotionally, even physically.Exploring the 5 W’s of your work-optional life can be a great initial step to envisioning your ideal retirement.THE 5 W’S WHO: Who would you spend your time with? Who is in

your support system? Do you have other resources to build additional support if you need it? What would you do?WHAT: If you had the resources, would you work or volunteer? If so, what would your ideal work be? Would you go to school? What would you study? What type of avocation, hobbies or creative expression would you like to pursue?WHERE: If you were living your vision of the good life, and had enough resources to do what you love doing, where would you reside? What would your lifestyle be like?WHEN: That’s what we’re covering throughout this article. Just remember, even if workforce reductions and other external forces alter your retirement plans, you still have more control about when and how you retire than you may think.WHY: If you had the resources, would you like to leave a legacy? What type of personal and/or financial legacy would you like to leave? How would you like to make a difference in the world?After the first two weeks of the workshops, participants start getting a clearer picture of their retirement plans. That’s when we typically introduce another thought-provoking worksheet like the one below. The idea is for participants to get more granular about the 5 W’s as they move forward in their retirement planning.

VOLUNTEERING & LEGACY PLANNINGFor instance, under WHY….What is your purpose? You could get more specific about your legacy planning. As you enter this next stage of your life, you won’t be able to write checks to every cause and organization that’s used to getting financial support from you. But, you can donate more of your time to your place of worship, your favorite community groups, your local schools and charitable organizations.

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ABOUT THE AUTHORErik Dullenkopf, CFP® is the founder of Ventura-California-based Screaming Eagle Wealth Management. The firm specializes in working with families in the oil & gas industry and guides them in successfully managing their transition into and throughout retirement. By focusing on this niche, Erik and his team brings unique knowledge and insight about commonalities, struggles and benefits that the ever-changing oil and gas industry faces.

Erik Dullenkopf, CFP®

CERTIFIED FINANCIAL PLANNER™ ProfessionalCA Insurance Lic. #0F97513

305 S. Kalorama Street, Suite FVentura, CA 93001 805.643.7700

erik@screamingeaglewm.comwww.screamingeaglewm.com

Commonwealth Financial Network® or Screaming Eagle Wealth Management do not provide tax or legal advice. Please consult a tax or legal professional for advice regarding your specific situation. Erik P. Dullenkopf, CFP® (CA Insurance license #0F97513) is a Registered Representative and Investment Adviser Representative with/and offers securities and advisory services through Commonwealth Financial Network®, member FINRA/SIPC, a Registered Investment Adviser. Fixed insurance products and services offered through CES Insurance Agency or Screaming Eagle Wealth Management.

One of my retired clients is now very involved in Habitat for Humanity--something he never had time to do during his demanding working years. Other clients have an affinity for the local high school they attended and volunteer to teach part time, mentor students or coach sports. And as you move down the time vs. money continuum you will find that your days are filled, your life has purpose and often with more gratification. That being said, if a monetary gift is an important part of your post-work life, it needs to be built into your retirement plan from Day One.

HELPFUL RESOURCES: • Chevron Retirees Association • 76 Research Alumni Group (Orange County) • California Alliance for Retired Americans • Independent Petroleum Consultants

CONCLUSIONWhen it comes to your retirement, it’s essential to be not only financially prepared, but emotionally and socially prepared as well. Revisit the 5 W’s--Who, What, When, Where, Why and How.If you or someone close to you has concerns about their retirement readiness, feel free to Contact Us. We’re happy to provide an evaluation as part of our complimentary second opinion service.