Three common mistakes retirees make when they retire.
Millions of Boomers are worried that they will not have enough money for a financially secure old age. Many of them have good cause to worry, they don’t have enough.
While it may be too late for them to save enough for a stress-free retirement, there may be more than enough time to grow their retirement fund and achieve a financially secure retirement; provided that they make the right choices now.
You see, Boomers have accumulated decades of knowledge, expertise and experience during their working career. But, as my lecturer at agricultural college taught me, not all experience is equal. One person may accumulate forty years of knowledge and expertise as they advance their career. Another person makes little effort to advance their career and experiences the same year forty times.
Which of the two will accumulate the greater value?
Could you be sitting on a gold mine of knowledge, expertise and experience?
What will happen to your wealth of accumulated knowledge, expertise and experience when you retire or stop working?
All to often it gets lost forever.
Here are three common mistakes retirees make.
I hope you won’t mind if I abbreviate “knowledge, expertise and experience” as ‘KEE’. I hope that, by giving KEE a name, we may feel the loss more keenly.
Mistake 1. They kill their KEE.
Many retirees, maybe even most, simply ‘shelve’ their wealth of KEE as they transition into the life of leisure they dreamed about for so long; a new life in which KEE has little or no value to them.
To fully appreciate how much wealth they are shelving, I think it would be wise for them to hold a funeral ceremony as they put their KEE to rest for the last time. Like burying a casket filled with gold that will soon turn to dust; useless to them and future generations.
They may reconsider their decision.
Mistake 2. They capitalise on their KEE.
Retirees who cannot afford to retire often transition into new careers; they continue earning a living by capitalising on their KEE; sometimes earning more in retirement than they earned in their nine-to-five (my uncle earned far more as a consulting engineer after he retired). They may seek new employment opportunities or transition into self-employment by becoming business or leadership consultants and coaches. Either way, their aim is to capitalise on their KEE in order to earn an income while allowing their retirement savings to grow for as long as possible before drawing an income.
Capitalising on their KEE is like putting a tap on a huge reservoir and allowing the KEE to flow as fast as they are willing and able to deliver. When they stop working, the taps will be turned off for the last time. The reservoir will still be full but the taps turned off.
KEE will evaporate into the air and be lost forever.
All they have done is delay the day when their KEE will be laid to rest for ever. They too should hold a funeral ceremony for KEE on the day that they turn off the taps.
Mistake 3. They ignore their KEE.
Knowing that their retirement savings are insufficient for a financially secure retirement, some retirees take a high-risk gamble by investing their already-meagre savings into a new business venture, hoping that the business will deliver the income they need in old age. All too often they invest in a business venture completely unrelated to their decades of accumulated KEE.
This is nothing short of high-stakes gambling and, as we all know, the odds are stacked against the gambler, especially the naive and novice gambler.
What more can one say, except that gambles seldom pay.
Don’t let KEE die!
Don’t let KEE die while it still has so much value to offer.
I encourage you to find a way to capitalise your KEE so that it can benefit the world long after you have stopped working and, in so doing, ensure that you enjoy a financially secure old age.
In conclusion, allow me to end with one of my favourite Henry Ford nuggets;
“If money is your hope for independence, you will never have it. The only real security a person can have in this world is a reserve of knowledge, experience and ability.”
“Don’t capitalise on your KEE, capitalise it.”
Don't shut off the taps on the reservoir! Instead build a whole irrigation system that will keep working long after you stop. That's what I mean by capitalise your KEE.
Shaun Lindbergh. I have been a small business owner and community activist for over forty years and, for the past ten years, a small business strategy consultant and coach helping small business owners to break through obstacles and accelerate growth. During my career I have developed numerous systems and strategies to reduce the risk of failure and enhance the probability of success; systems that have enabled me and my clients to rapidly grow our businesses and wealth.
In 2019 I developed a new, but related strategy, to help Boomers to accelerate their retirement savings by capitalising their decades worth of knowledge, expertise and experience, their KEE. I call it the Wealth Diamond Accelerated Retirement Plan. I designed the Wealth Diamond system in 2009 after experiencing a business failure that virtually wiped out my retirement plan; I needed a way to rebuild the millions I had lost “in the shortest possible time, with the least amount of risk”. Capitalising forty years of KEE was the only way I could do it. It may work for you too.
Don’t let your KEE die! Talk to me.