As the new year approaches, you are one step closer to retirement. Congrats! Depending on your definition of retirement, this could be really cool, kind of stressful, or completely unknown. Wouldn’t it be nice to know what your retirement might look and feel like before it arrives?
What if you looked at your possibilities through a different lens in 2026? Instead of imagining your retirement in the distant future, think of yourself as already retired and reflecting backwards to today.
Starting with the end in mind and working backwards engages our imagination. This incredibly powerful technique prompts our brain to believe we’re actually retired. What do you really want? What exactly are you doing with your Monday through Fridays? Who are you spending time with? These questions are so much easier to answer using your imagination.
The fact is that we become what we think about, so having a clear picture is better than a fuzzy one. This begins by resetting your brain and thinking of retirement beyond the traditional approach. Common mistakes I see investors make include:
- Focusing on account values
- Obsessing around spending rates
- Letting your portfolio dictate decisions
- Thinking you must wait until age 65
- Believing both spouses must retire
- Quitting a job you enjoy
- Underspending and not taking the trip
- Focusing on current events and economic commentary
Do your present and future self a favor and just breathe. Take a minute to loosen your grip on what you think you must control for the outcome to be what you want it to be. Guess what, there are no safe withdrawal rates when spending down your portfolio through retirement. You’re going to have to be flexible, patient, and accept a lot of things are out of your control.
This is often too much handle and the reason so many investors keep working in jobs that aren’t fulfilling. By working another year, you don’t have to make decisions as you generate an income that pays the bills. Eventually, you’ll retire; hopefully on your terms and timeline, and not one dictated to you.
Practice thinking beyond the numbers and commas in your accounts. Instead, use your imagination to think about where you will spend your time. Retirement doesn’t need to be data dependent on spreadsheets, graphs, and forecasts. These may make us feel better as there’s a real discomfort with uncertainty. We crave more certainty in all our choices. When we have this, we feel more confident and tend to act with purpose on all decisions, both big and small.
The problem this creates when strategizing for retirement is the lack of certainty when investing our money. If certainty existed in all our investment choices, we’d have what we want and lots of it. Comedian and actor, Jim Carrey, has a great quote around wishing everyone could be rich, wealthy, and have everything they want. Only to discover that’s not the answer or key to happiness and fulfillment. Having guided investors for the past thirty years, this is so true.
So is there an alternative to reframing retirement? Yes, I believe it begins by changing the definition into something more digestible and relatable. My suggestions include:
- Repurposing your time
- Wellness and well being
- Being where you want to be
- Friends and family
- Traveling and exploring
- Curiosity and learning
You don’t have to have all the answers ahead of time or to figure this out on your own. It’s beneficial to have a trusted counsellor to bounce ideas off so you continue moving in the right direction. Communication and having an ongoing dialogue can help you make the most of what you want to and through retirement. The art of planning is not about being right today, just being less wrong over time.
In addition to time, another challenge is defining yourself beyond what you do. I’m a partner, owner, principal, etc. So much of our identity is in the work we do each day. When we begin thinking about our time in the later years and working backwards, we can ask ourselves who we want to become beyond the work we do today.
This is scary! Reimagining ourselves after decades working at the firm or in that industry is not easy. Another reason why so many simply choose to keep working so they may temporarily avoid this question. That’s unfortunate in the long run, as it robs you of your time.
Applying the skills and knowledge you have accumulated in your working years to an encore career or new venture can be very rewarding. There is nothing wrong with working through retirement if you enjoy what you’re doing. Having structure to your days is important, as is socialization and overall wellbeing with a sense of purpose.
Adding a workout routine to your schedule will keep you physically and mentally fit too as more time becomes available. Your health and wellness routine are the invisible investments that truly matter. This will define your later years to a much greater extent than your financial wealth ever will.
Yes, financial wealth does matter for cashflows and spending. Too often our focus sticks to a number, or income level, or watching account values zig and zag and letting that define who we are. Your investments are a tool to help you live your life, don’t let them define your time or who you become.
Instead, take a different approach in 2026 by using your imagination. Direct energy towards inputs you control and let the chips fall where they may. This less traveled path is much more enjoyable and rewarding.
Want a second opinion? We’re offering complementary chats so you can discover what retirement means to you. Spoiler, most spouses want different things for their premium version of retirement. Fortunately, we’re skilled at asking the right questions that help families gain clarity, agreement, and create a plan moving forward. Mention “retirement 2026” to have a different, more engaging conversation as the possibilities are endless.
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