How A Threesome Can Improve Your Retirement

I’m officially thinking that any man (or maybe women too) who read this headline was thinking this, “Ted, have you officially lost your mind trying to connect the words threesome and retirement in the same headline?”   The answer is no, I haven’t officially lost my mind although a few people who know me well have always considered me to be an out-of-the box thinker.    And for the record, I’m not going to suggest any of you run out and have a threesome although you’ve probably fantasized about it once in your lifetime.   So how can a threesome actually help improve your retirement?

The menage-a-trios that I am talking about here are the three players you need to fall in love with to be able to retire successfully.    Within the X and Y Generation, the philosophies that have been in many of the major publications will likely fail because they simply talk about statistics and numbers.  What most common retirement strategies fail to mention is the psychology behind the strategy and how it affects the person who is trying to make work optional.    Here are the three strategies to look for under the covers if you want to understand the threesome strategy.

1. You Must Have A Pension – People who retire with large 401(k) balances, sell a business for a pile of cash, or build up massive sums of money in the bank actually have a problem that they didn’t realize they would have when they were building up their money.   It’s the psychology of “I’m not going to go broke” that actually becomes a detriment to the way people behave when they retire.    This attitude is actually a deterrent from allowing people to enjoy retirement because anytime you see the account value go down on your bank account or brokerage statement, you immediately revert back to a mentality that you can’t do anything . . . or you might run out of money.   I’ve seen this personally with many retirees who have constant panic and stress as they watch the daily values of their accounts go up and down.   Even if you don’t have a pension at work, setting up a program with an insurance company to provide you with some sort of guaranteed monthly income when you retire is actually a good thing because each month you will get a check directly deposited in your account.    Find anyone you know that had the old traditional company pensions and ask them how happy they are that they don’t have to worry about the bond or stock market every day.

2. You Must Have A Paid Off House – I’d be remiss not to mention that I recently attended FinCon12 which had some of the top financial bloggers in the world in attendance.   I met at least a 1/2 dozen people under the age of 35 who were ‘retired’.   The interesting thing is that by purchasing a smaller house and aggressively paying off the mortgage, it gave them the financial freedom to use a smaller capital base and other passive streams of income to technically have made work optional.    Either way, you must fall in love with the strategy of paying off your house.    When I started in the financial services business, we were always told by managers that people could do better off in the stock market than they could on their house especially if interest rates were low.    Forget about the financial analysis to determine which is better, and focus here on the powerful emotional feeling you have knowing that you owe NOBODY!    When my mom retired (a 5th grade school teacher) that was my number one piece of advice to her-pay off your house and she did.   Today, she still says it was the best decision she ever made.

3.  You Must Fall In Love With Work That Keeps You Alive –  A few weeks back, I had a car service take me home from the airport.   During the car ride, I had one of the most wonderful conversations with a 77 year old driver who reminded me of Alfred from Batman.    He actually had a cooler of beers waiting for me in the car, Nutrigrain bars, and several choices of fruit.    I shut down my phone and he preceded to tell me about how he has been in and around the car business for the last 60 years.    He told me that he actually drove race cars competitively and he still drives cars today as this is his life’s passion.    He never plans to ‘retire’, but is truly enjoying his retirement staying active with the work that he loves to do.   Why do you have to wait to come alive in retirement if you are dead every day going to work?    Seems like that would be backwards.     When you love what you do, there will always be a way to make an income stream.

From my headline, I’ll bet somebody had a flashback of being Jack Tripper from Three’s Company, one of my all time favorite shows.    If you have daydreamed from time to time about having a threesome, perhaps these three tips can give you a fantasy you have also dreamed about.  The ability to do what you want to do, when you want to do it, without having to really think about money.    That’s my smart money move for retirement.

Written by:

Ted Jenkin, CFP®, AAMS®, AWMA®, CRPC®, CMFC®, CRPS®

Co-CEO and Founder of oXYGen Financial, Inc – The Leaders in Gen X & Y Financial Advice and Services

Visit www.oXYGenFinancial.net to request a consultation on how to make smart money moves for your future.

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About the author  ⁄ Ted Jenkin @ Your Smart Money Moves

Ted Jenkin @ Your Smart Money Moves

Hey!

My friends and family all think I’m a workaholic, but I say I’m just a guy that loves to help people do better in life.

My mother is still the only one that calls me by my real name Theodore Michael, my wife calls me Teddy, but for the rest of you it is just plain old Ted.

Ever since I was a little kid, I always loved money and being an entrepreneur. In fact, I still have cassette tapes of me talking to my grandmother at the age of five and my mother tells me all the time how much I played with money as a kid…

Read More About Ted Here

Ted Jenkin is a frequent guest columnist for the Wall Street Journal and Headline News Weekend Express. He is the co-CEO of oXYGen Financial. You can follow him on LinkedIn @ www.linkedin.com/in/theceoadvisor or on Twitter @tedjenkin.

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. oXYGen Financial is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice.

The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor regarding your individual situation. 

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12 Comments

  • September 17, 2012

    I saw threesome and fell off my chair, but this is actually a threesome that we should ALL have. I left a job with only 5 months to go to qualify for my pension. I figured that $200 per month some 30 years from now wouldn’t be worth it, but every penny counts, I guess!

    If I ever return to the company the clock picks up from where it left off, so I still have a chance since pensions are so rare these days. Hang on to your pensions with a death grip people!

  • Ted Jenkin @ Your Smart Money Moves
    September 17, 2012

    Sandy,

    Glad the title caught your attention :) While pensions don’t always seem ‘sexy’, I do think that people in their 30’s, 40’s, and 50’s need to make sure they have something that will provide guaranteed income to recreate their paycheck when they retire. Thanks for reading Your Smart Money Moves!

    Ted

  • September 17, 2012

    Ha! Awesome title Ted!

    This is a really great article, and I hope you get all the juice you can out of the title. We have a plan for a pension (rental house income), paid off house (in about 3 years), but haven’t found the work that will keep us alive yet. I’m not sure what that will be. I know we’ll need to find something to do in retirement so that we don’t get too bored. Maybe it will be working with a charity, or possibly even writing:) Being in my mid-thrities, I still have a while to figure that out, I guess.

    Thanks again for the great article!

  • September 17, 2012

    I especially like #3. I don’t plan on retiring. If I have to for medical reasons, but in that case, I hope it’s really short. It’s not that I particularly enjoy my job or any job I’ve ever had, but I enjoy being busy and I enjoy not having to come up with ways to keep myself busy!

  • Ted Jenkin @ Your Smart Money Moves
    September 18, 2012

    Edward,
    It is most important to find the work we love!!

  • September 18, 2012

    Great article, Ted! Paying off your mortgage ought to be your first goal to financial freedom even if you are not considering retirement.

    Let’s face it, mortgage is one of the major drag on your way to financial freedom.

    I also like your take on doing what you love. I think retirement is doing what you love.

  • Ted Jenkin @ Your Smart Money Moves
    September 18, 2012

    Shilpan,
    Agreed. Many people underestimate how they will ‘emotionally’ feel when they pay off the mortgage. More important, many financial advisors recommend to invest the money vs. paying off the mortgage without considering how it will help a client be financially free!

    Ted

  • Brittany Waters
    September 18, 2012

    Interesting article! I must admit, it was the headline that caught my attention! lol.

  • Ted Jenkin @ Your Smart Money Moves
    September 18, 2012

    Brittany,

    Thanks for “clicking” I hope you “got” something out of the article!!!

    Thanks for reading Your Smart Money Moves!

  • Dan Telford
    September 21, 2012

    Ted, that was spot on. I am actively trying to find that job that I will love forever. I like what I do right now but certainly don’t “love it”. I appreciate this threesome and will heed.