The Go Go, Slow Go and No Go Years

​There is a good chance that if we have worked together for some time, you have heard me mention 3 distinctive phases to your retirement.

Your money and your health rarely peak at the same time. Plan as if they do, and you’ll get the timing exactly backwards. Here is my take on why not planning for these 3 phases is a crucial mistake for retirees.

Phase 1: The Go-Go Years
Think of this stage as the day you retire until 73-75. Early on, your body can still do anything. Hiking, travel, late nights, playing with your grand kids and adventure.
Experiences cost the least effort and pay the most in memories. This is also the shortest window!

This is exactly why I urge my clients to spend aggressively here – I want you to front end load your retirement spending in this stage. If your retirement income goal is 100k, lets run the numbers to bump it to 120k for the first 10 years so we can really push the needles with experiences.

The biggest mistake I am noticing now is retirees ‘wasting’ this window of great health, only to begin in their early 70’s. Shifting your mindset from hoarding wealth to spending is the first step in this phase (and usually the most difficult!).

Too many Canadians are hoarding wealth in their 60’s and 70’s. Your net worth should be slowly declining here since you’re spending on bucket list experiences or gifting to family so you can see them enjoy it (when they need it most).

Become comfortable with the idea that your assets should be being used – this is why you saved all those years! When I have clients pass away with 7 figure portfolios, I just think of all the memories that could have been made and all the good that could have been had with a little more thought and planning.

Phase 2: The Slow-Go Years
This is from age 75-85 where energy dips. The big trips get swapped for gentler ones.
You still want to do things, just closer to home and at a calmer pave. Your spending naturally starts to tape here.

Experiences don’t have to stop here, they simply change and you adapt. You leverage your wealth for greater comfort here (private guided tours and transfers, business class air fare or bringing family along to share memories) so that you still can enjoy what is important.
  
Phase 3: The No-Go Years
Eventually the adventure stop, not because of money but because of your body. Most spending here goes to comfort and care. No balance buys back the trip you can no longer take.

The cruel irony? We save hardest when we can do the most.

I watch clients stock pile money straight through their Go-Go years. Then they arrive at the No-Go years rich, tired and out of time to use it. If I can instill one idea to my clients today, it is to front-load the experiences. Back-load the rest. It will all work out, and you will be so happy you did. Do not wait until retirement for the ‘big’ trip – do it now if you can. Spend boldly while your health can cash the check. The adventures that need a strong body have a deadline. The quiet years can run lean and still be great.

Match your money to your health, not your age.

I want my clients to plan their spending around the body you’ll have, not just the years you’ll live. Summer can be the best time to dream and map out what this looks like and I am happy to help.

Be bold, think big and don’t wait for the right moment because as we all know, we are the youngest we will ever be right now!