Goal Setting in Retirement

That day when you look at your spouse and realize that you’ve accomplished everything you set out to accomplish after you retired?  Yeah, that’s happened. 

For those of you whose goal is to retire, be advised:  retirement is a doorway, not a destination.  When we retired we knew we would buy a trailer and work as campground hosts for five years.  During this time we would continue to become totally debt-free by reinvesting most of our rental income back into the properties.

Fast forward four years, five months, and three days, and here we are.  We decided to give up camp hosting after the summer of 2015 and learned that we quite enjoy camping without cleaning toilets.  All our rental properties are paid for.  Our hard work helping our son and daughter-in-law plan and execute their wedding culminated in a beautiful October 1 celebration.   And we have set no additional goals.

So now what do we want to do?  Travel?  Downsize?  Buy a summer home (or in our case, a winter home)?  Just for fun, I looked through an attempt at a “Bucket List” written in 2004 (eight years before we retired, and three years before we started calling them Bucket Lists).  There are 33 items on the list. 

#1 is to write and publish a novel. I’m working on it.  I’ve been working on it since 2012.  I’m on Chapter 31. 

#2 is to own two condos – one in SLC and one someplace warm.

Of the remaining 31 items, 13 are places I want to travel to (2 accomplished), 6 are things I’d like to do with my time (2 accomplished), 2 are things I’d like to learn, 3 are places I’d like to sing (2 accomplished), 2 are places I’d like to volunteer (1 accomplished), 2 are items I’ve since decided I never want to do, and the rest are pretty random .  Things like owning another pug, giving the kids nice weddings, and running a 5K.  Yes, I did write 5K.  How was I to know what an avid runner I would become?   So far I’ve accomplished 11 ½ of the 33 items on my list.

Just for fun, I shared the list with my husband.  He agreed with me that traveling more and trading in the big house for two smaller houses were ideas worth considering.  Maybe it’s time to transform these from the bucket list to actual goals that we can work on together.

Annuities 101

Several of our friends are considering using their 401K / IRA savings to purchase one or more annuities in retirement.  OK – I know.  News flash – lots of people buy annuities.  Just not us.  Somewhere along the line we’ve managed to become convinced that annuities are a bad investment and that we should run away – run far away – from anyone who tries to convince us otherwise.

But our friends are smart people.  Maybe it’s time to take another look.  Here’s what I learned while researching annuities. 

1.  An annuity is an insurance product.  You purchase the annuity for a specific amount, either through regular premiums or through a lump sum, and then it pays you a specific annual income for the rest of your life.  Like most insurance products, the insurance company helps you manage risk.  An annuity helps you manage the risk of outliving your money.

2.  The basic annuity pays only for your lifetime.  Once you die, the payments stop.  Annuity contracts can be written to provide ongoing income for a beneficiary or for a guaranteed number of years that the annuity will pay out – but this will cost more. 

3.  The insurance companies use your projected life span, based on actuarial tables, to calculate your annual payout.  The annuity holders who die early cover those who live longer.

4.  One of the main advantages of annuities is that there is no limit to the amount you can invest in them.  Many investors will fund annuities once they have maxed out their IRA / 401K contributions.   Earnings on the funds are tax deferred.  Since investment is made with after-tax dollars, the money you contributed is not taxed at withdrawal (if you are over 59 ½); earnings are taxed at your regular tax rate.

5.  One of the main disadvantages of annuities is that once you’ve invested in one, your money is locked in.  Many annuities offer a way out – with a hefty surrender charge.

The architect in me loves the model at the top of the post – it is from the Utah Division of Securities, and you can get the step by step information on their web site.  The accountant in my husband is convinced that we can do just as good a job as an insurance company in managing our assets – and managing our risks.  I’m convinced as well.  While annuities may be the right solution for some, they are still not for us. 

Disclaimer:  A few days of research does not make me an expert.  I used the following web sites in researching this post:

Wikipedia

What are the different types of annuities - CNN Money

Annuities Explained:  The Choices and Red Flags

The Utah Division of Securities

Retirees and CPEs

I am a Certified Information Systems Security Professional (CISSP).  This is an internationally-recognized certification issued by the International Information Systems Security Certification Consortium (ISC²).   OK, way too many acronyms.  To earn this certification, you have to have four years’ experience in Information Security and pass a six hour exam.  The exam was the most difficult I’ve ever taken – ISC² should hand out coupons for stiff drinks upon completion.

When I notified ISC² of my retirement, I expected to surrender my certification.  I was delighted to learn that I could keep it, as long as I met the requirements for continuing education and paid my annual maintenance fees.

I decided to keep my certification, to keep my mind active and my options open.  Of course, it is now October 30, which gives me only nine weeks to get the remaining 20 hours of Continuing Professional Education (CPE) I need for this year.   Yikes!  This is a lot – and not being employed by a major company has limited my access to training. 

So I called in the big guns – my former security teammates.  Many have reached out to me with books and web sites.  So far I’ve taken a webinar on the top ten application vulnerabilities, a webinar on data and IT service excellence, a webinar series on Identity and Access Management, and am in the middle of a self-study course in writing. 

I’ve always known I would keep learning in retirement – the CISSP continuing education requirement is just the thing to kick myself into really doing it.

The New Routine

Now that we’ve finished winterizing and storing the trailer, cleaned up the overgrown jungle otherwise known as our back yard, and completed road trips to Phoenix, AZ and Cody, WY, I think we might be settling into a routine.

Not necessarily surprising, it’s similar to the routine we fell into at Hoop Lake.  We wake up and have coffee and read the paper.  I run.  We go to work.

Wait – I’m retired.  What’s this about going to work?  Since coming home from the lake, I have mowed lawns, fertilized lawns, sprayed for weeds, sprayed for bugs, picked up trash, hauled trash to the dump, replaced switches, painted decks, and taken door knobs in to be re-keyed.  Whew!  I have to confess that I had completely taken for granted all the work that it takes – and that Paul has done all these years – to manage our rental properties. 

I had hoped to be more prolific in my writing once things settled down at home.  Here’s another confession – I was somewhat annoyed that the schedule we’ve adopted has me doing manual labor during the morning hours, which have always been my peak time for energy and creativity.  But I step back and realize that I should directly contribute to the business that is funding my retirement.

I also should write.  It’s what I’ve been planning to do in retirement since I was in my early 20s. 

So it’s back to the Hoop Lake schedule, and I’m writing in the afternoons.  Trying to do so without caffeine – most days I succeed.  Also trying to do so without the distractions of the Internet.  Wish me luck on that one!

The Bucket List - Ute Football Road Trip

Paul hates to fly.  It’s not the actual flying part that gets him; it’s the fact that you turn control of your life over to the commercial aviation system from the moment the automatic glass doors shut behind you.  They tell you what you can carry, what you can eat, what you can wear and when to take off your shoes.  We both agree that this is a small price to pay for the safety of the American skies.  Paul’s solution is – drive, don’t fly.

We’ve been tailgating at the University of Utah football games for several years, and our group goes to at least one road game a year.  Paul’s dislike of flying combined with my limited time off work had conspired in previous years to make it so we couldn’t go on the road trips.  Retired now – no more scheduling around work!  We purchased our tickets to the Arizona State game (September 22) in May.  We left for Phoenix on September 19, stayed two nights in Mesquite, Nevada and met our traveling Ute cheering section in Sedona, Arizona.  We drove into Phoenix on September 22 and arrived on campus in time for the Ute Tailgate Party.

We thought the tailgate party was great fun!  The food was good, the beer and wine were free, and the Ute marching band and cheerleaders ensured the school spirit was high.  Our more experienced friends said the tailgate parties were normally a lot more rowdy, but since this one was indoors it seemed a little more sedate to them.  An indoor tailgate party?  It was 105 degrees outside – we were grateful for the air conditioning!

Our heartfelt thanks go out to the Arizona State parking system.  We parked in the disabled lot closest to the stadium, where a golf cart was waiting to take us to the tailgate party.  After the party we hitched a ride on another cart that took us to the stadium, where we were able to catch yet another cart to take us to the nosebleed section where our seats were.  Paul was able to get in and out of the game with limited walking – yeah!  At 7:00 PM under dark skies it was still 101 degrees outside.

So we made it to the game – what happened to our football team?  It seemed like the Arizona State Sun Devils scored with every possession; the Utes couldn’t stop them.  Of course, every time ASU scored they set off fireworks.  Paul and I caught up on the fireworks displays we missed by being in the mountains on July 4.  A disappointing finish to a great road trip – but, oh, well.  There’s always next year.

The Bucket List - A Glider Flight

Well, OK, this was really on Paul’s brother Jon’s bucket list.  I had never even considered riding in an airplane without an engine, but, hey, why not?

It was a beautiful morning for the ride.  The air was cool and crisp, the sun was shining and the wind was still.  Our pilots explained that we would each ride alone, in the front of the glider, while the pilot controlled the aircraft from the rear seat.  Paul went first.  They strapped him into the cockpit and lowered the glass, then connected the tow strap from the tow plane, a single engine Piper, to the glider.  I watched as the tow plane pulled the glider into the air, then cut the line and let the glider sail.  It landed about 20 minutes later, and my exhilarated husband exited, all smiles.

Then it was my turn.  They had to add ballast to the front seat to ensure proper weight and balance, jokingly telling me that I had to sit on the “lead butt.”  It was true – they put about 40 lbs. of lead weight under the cushion of my seat.   The weights made a nice booster seat; it’s always good to be able to see over the control panel.  No more short jokes today, please.

Jon, Paul, and Pilot Tom

After attaching the five-point harness that strapped me in, my pilot, Tom, showed me all the controls and told me how they worked.  He then lowered the glass and I snapped it securely into place from the inside.  Thumbs up.   We hooked up to the tow plane and Tom announced our departure on runway 22.

The plane rose steadily to about 2000 feet above the airport before the pilot released the tow strap, and we were sailing through the air.  We soared across the mountains.  My hand was on the control stick and my feet were on the rudder pedals, so I could feel what the pilot was doing to control the aircraft.  The glider responded to Tom’s slightest touch, as the physics of flight played into his hands.  There was no wind noise.  There was no turbulence.  The peaceful floating sensation was interrupted only by Tom’s enthusiastic commentary about the flight and the area over which we flew.

All too soon it was time to land.  I was startled when Tom lifted the spoilers, which interrupt the flow of the air over the wings and help to bring it down.  Whoa – the "lead butt" landed with a slight bump - about a foot off the ground. I felt like I could reach down and touch the runway.  The glider rolled to a stop in the exact spot where I had boarded, and an exhilarated Cheri exited, all smiles.

Jon took the last ride.  Our introductory flight was a “teaser” designed to give first time “soarers” a taste of the thrill, and the peace, of gliders.  It worked.  I would do it again in a heartbeat.