Goal planning is hard-wired into me. As a young girl, I always loved New Year’s Eve. Watching the ball drop, toasting my “champagne” apple juice and pouring over my new year’s resolution. That desire to create and chase goals has been with me as long as I can remember and may be one of the core traits I naturally possess that I believe helps me as a financial planner. A lot of other people are hard-wired like me, so when that goal is linked with money in the form of building a retirement nest egg: I believe I have the skills for this job. There is no goal too large, too small, too close, too far away or too unobtainable that I haven’t fully enjoyed planning for. And chasing.
But what about when you hate setting goals?
My go-with-the-flow people? Who lives in the moment and takes life as it comes instead of chasing after a goal that may (or may not) suit their needs. How do you plan for retirement with people that don’t like to plan? I do it every day, so I’d like to speak to those folks for a minute. Let’s dive into the “how to plan for retirement when you hate planning and don’t want to think about retirement” goal for 2025. All my analyticals and goal-chasers can take this month off, I’ll see you (and your spreadsheets) in February.
We are going to swap out the phrase “planning” for “mindset alignment”. We will replace “retirement” with “goal of living on passive income”. And we can take the whole concept of working your tail off for 30+ years to one day have a big pile of money of which you’ll take the principal and interest monthly for the rest of your life completely off the table. Yep, I see you. You are the majority of Americans that are living in the now and either cannot afford to worry (ie: plan) about the future or make the intentional choice not to think (ie: plan) about it. Either way, goal planning is just not your thing.
So how do we do it? How do we make sure that when your body tells you it’s time to stop working, you have the financial resources to ensure your daily needs are met? FOR THE REST OF YOUR LIFE? How does a retirement plan just appear out of thin air when you’ve done no planning for it? My answer is a bit controversial nowadays, but I’m going to close my eyes and just go for it: you can still retire without planning for it.
Not everyone has a 401(k). Not everyone has a goal or a plan – but generally everyone will require some sort of passive income in their old age. In my opinion, those who have a positive mindset alignment to their current state of financial resources can have a much better life than those that have a huge retirement nest egg. You see, people that don’t do goal planning may still win. And I’m not talking about “suddenly” getting a pile of money. They adjust their expectations to meet their current financial situation….and just roll with it. They have been living in the moment for so long, that when that moment starts to be called “retirement” they may not even feel the vibe change at all.
Picture this: a person starts a small web-based business in their 30’s that ends up throwing off enough money where they can quit working for someone else and become self-employed. Yes, they don’t make as much as they used to…but it’s okay. Their basic needs are met, their mental health is good and they are happy in their new lower income lifestyle. Now picture this person living like this for the next thirty years….working 20 hours a week and having the time to travel and be present in their lives. No goals. No retirement plan. Just pivoting and adjusting at what life throws at them along the way. Now, they are 65 and without any preparation they are of the traditional retirement age. But without a large nest egg, there is no retirement income so they must continue to work….at the job they love, 20 hours per week, dialed into their daily lives. And then the day comes when they must stop, because another pivot doesn’t work… or their body tells them it’s just time. Social security begins and their lifestyle adjusts again to a new income through an alignment of their expectations with their current situation. And boom. A retirement plan just played out. With no planning, no goals, no fuss and no worry – but it was not easy. Living in uncertainty is not an easy life, but it can be one where people thrive. And sometimes, it’s all just going to be okay because the mindset becomes just as important as the IRA balance.
So, if you are like me and you are excited for January when your new vision board is ready to hang or if you are like my sister and you have no idea what you’re going to be doing January 2nd let alone in 25 years….. I see you both. And with or without a goal, if you live long enough there will be a time in your life where the concept of not working any longer thus needing passive income to maintain your lifestyle will happen to you. And your mindset will be one of the greatest factors of a successful retirement….because that will be the only thing within your control. Plan on that.
Kimberly Enders CFP® CWS® CERTIFIED FINANCIAL PLANNER™
Enders Wealth Management
37800 Van Dyke Ave, Suite 125
Sterling Heights MI 48312
586-554-7969
www.enderswm.com
#kimenderscfp
All investing involves risk and there is no guarantee that any investment strategy will be successful.