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A Retirement Dress Rehearsal: 4 Parts You’ll Want to Test Drive

A Retirement Dress Rehearsal: 4 Parts You’ll Want to Test Drive

retirement, financial advisor San Antonio Nov 22nd, 2021 by: Darryl Lyons

You may be thinking, “A dress rehearsal? For retirement? What’s there to practice or try out?” Unfortunately, many retirees think this way, but when they reach retirement, life isn’t how they had envisioned. 

For example, retiring in Texas? Well, a San Antonio retirement can be a wonderful thing, but have you been here before? You may have heard of the state’s low cost of living, but have you discussed property taxes? Do you have a plan for how to structure your day in retirement? Have you thought about how to emotionally prepare for retirement? 

Based in San Antonio, Texas, the financial advisors at PAX Financial Group can help you address your concerns and even run different scenarios to see how one decision can affect your overall plan. Making a decision as big as retirement is not something to take lightly.

Retirement isn’t just about not getting up for work in the morning anymore and planning exciting vacations. It can be an extraordinary change to your lifestyle, budget, habits, pastimes, possibly even your geography – and the change can happen literally overnight.

What’s more, you may find it unexpectedly difficult to adapt to some of those changes, or tough to reverse others if they don’t feel right. 

So how exactly do you test drive your retirement? There are 4 important elements to consider.

 

1. Location: Spend Time Where You Plan to Retire (If That’s Another Area)

First, let’s talk location.

If you plan to relocate in retirement, whether it’s to another state or another area within your state, see if you’re able to take an extended leave or vacation from work and spend some time “living” in your potential new locale. Get a feel for the community as a resident, which may be very different from the way a vacationer might experience it. Does it have the culture, shopping, recreation, lifestyle, weather and people you want to surround yourself with? Are the costs of living compatible with your retirement income? Are your plans for retirement – say, babysitting grandchildren in retirement – as fulfilling or realistic as you thought?

Trying life out first can help you avoid making a costly mistake that would be hard to fix, such as relocating across the country. 

 

Planning on retiring in Texas? contact the team at pax financial group to see how we can help you make the transition.

 

2. Expenses: Live on Your Retirement Budget to See if It’s Enough

If you expect your expenses to go down in retirement, living on a retirement budget early on can be difficult, but a financial advisor can help you use accurate projections to get a feel for what life will really be like. If there are any holes in your retirement budget, it’s better to find out and address them early on so you have time to make adjustments if necessary.

For example, your transportation expenses may decrease without day-to-day work travel, but your entertainment expenses and grocery bill may jump as a result of your extra free time. These increases and decreases may not offset each other as you thought, and the only way to know for sure is to try it out. 

When living on your retirement budget, are you able to live within your means? Do you have more than you need? Not enough? The financial advisors at PAX Financial Group can help you adjust your plans. 

Maybe delaying your Social Security benefits will give you the extra income you need? Maybe taking advantage of catch-up contributions to your retirement plan will put you where you need to be? Maybe delaying full retirement for one year will make enough of a difference to let you live comfortably? Knowing ahead of time can help you be better prepared.

 

3. Your Day-to-Day Plans: Spend Time Doing the Things You Plan to Do in Retirement 

How do you plan to spend your time and keep busy in retirement? Now ask yourself, how will that translate into retirement?

For example, if you plan on babysitting grandchildren in retirement, have you done so on a consistent basis? Will you still be active enough to keep up? Do your children have the same ideas of what “babysitting” will look like? If it includes taking family trips, does your budget allow for it? Trying things out ahead of time can ensure everyone is on the same page. Having a test run can also help you determine if your plans are as fulfilling as you had hoped. If not, knowing it ahead of time gives you the opportunity to re-evaluate your vision for your lifestyle in retirement. Maybe watching the grandkids every other week makes more sense. In that case, what will you do with your extra time?

 

4. Your Social Circle: Spend Time with the People/Organizations You Plan to Be With 

Unfortunately, at PAX Financial Group, we hear too many stories of retirees who assumed they’d have people to spend their days with only to find out that they don’t. This can lead to isolation, loneliness, and even depression. 

Let’s again assume you plan on babysitting grandchildren in retirement. While you may love them unconditionally, will they be enough? Will your children also be able to make time for you, or will have friends or other family members to offer adult interaction? If you plan to volunteer, does the charity you plan to volunteer with have a position for you or a role that makes sense? Will it require more time than you had hoped?

 

Why a Test Drive is So Important 

At PAX Financial Group, we have more than 100 years of combined experience helping families retire in Texas – and nationwide – and one thing has become inherently clear: Everyone is different! What works for one person may not work for another. Especially when it comes to how to spend the rest of their life! 

A test drive can offer you peace of mind, knowing that something will fit before you commit.

If you have questions, concerns or holes in your retirement plan, the team at PAX Financial Group is here to help! Schedule a no-obligation conversation today.

 

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This material is provided by PAX Financial Group, LLC. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. The information herein has been derived from sources believed to be accurate. Please note: Investing involves risk, and past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All market indices discussed are unmanaged and are not illustrative of any particular investment. Indices do not incur management fees, costs and expenses, and cannot be invested into directly. All economic and performance data is historical and not indicative of future results.

 

Darryl Lyons

Darryl Lyons

CEO and co-founder of the PAX Financial Group, Darryl Lyons has been a licensed professional in the financial services industry since 1999. A lifelong Texan, Darryl began his career in the financial sector just one day removed from earning his bachelor’s degree in corporate financial management and accounting at St. Mary’s University. Throughout his career, he has won awards for recruiting and development from Fortune 100 companies. In January 2007, he chose to begin and develop his independent practice. He joined Andres Gutierrez and Joseph Schuetze to form the PAX Financial Group. Darryl also served as the Chairman for Brooks Development Authority. Shortly after his service, Mayor Julian Castro, named a park “The Darryl W Lyons Park” in honor of his service. He was named to the 2010 San Antonio Business Journal’s “40 Under 40 Rising Stars,” which honors people making a difference in business and in the community.

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