Thriving in Uncertainty
Retirement includes A LOT of uncertainties. Especially as we prepare for retirement when there are so many unknown variables and unforeseen situations. Such as what if the market crashes? How will inflation impact my standard of living? What if my Social Security/Pension gets cut? What if my investments underperform? What if I die early/live long? What about Health Care/Long Term Care?
It’s easy to get overwhelmed by the sheer number of variables. I could go on and on, but I think I made my point. Retirement is scary. We crave certainty yet are expected to live in and plan for an environment with so much uncertainty. When encountering this brave new world, the process can be quite overwhelming, causing anxiety and discomfort. A personal crisis of sorts. The good news, if you want to call it that, you are not alone in this struggle...
Our major media sources are, of course, extremely vigilant in reminding us of the impending 'crisis' we are expecting to face...
The media loves eye-catching headlines and retirement anxieties are no exception. But constant fearmongering drowns out the good news: You have the power to navigate these uncertainties.
There are many experts in the field of Crisis Intervention. For today’s purpose I will use the framework from Dr. Terrence Bostic, Ph. D. and his Crisis Intervention Strategies. To save you some reading, Dr. Bostic breaks his strategies down to these steps:
Define the Problem
Ensure Safety
Provide Support
Examine Alternatives
Make a Plan
Obtain Commitment
When I look at this framework, I see a lot of similarities to the Guide to the 7 Step Financial Planning Process provided by the Certified Financial Planner® Board…
Understanding the Client’s Personal and Financial Circumstances
Identifying and Selecting Goals
Analyzing the Client's Current Course of Action and Potential Alternatives
Developing Financial Planning Recommendations
Presenting Financial Planning Recommendations
Implementing Financial Planning Recommendations
Monitoring Progress and Updating
I’ve formatted the two frameworks to describe how these two puzzle pieces fit together.
In facing a crisis, when is the best time to handle said crisis, whether it be financial, medical, emotional, or other? Well, RIGHT NOW, right?! Or at least as soon as humanly possible.
Don't wait for a crisis to start planning. Your ability to learn and adapt is your greatest asset. Humans are complex, adaptive systems and have the ability to learn and make changes. Utilize educational resources, professional guidance, and your own inner strength to build a secure and fulfilling retirement.
While I'm a financial planner, crisis intervention is a specialized field. Social workers, therapists, and other mental health professionals are invaluable resources for managing emotional stressors. Don't hesitate to seek help if needed.
Retirement planning isn't about eliminating uncertainty; it's about empowering yourself to navigate it with confidence. By taking control of your finances and developing a solid plan, you can look forward to a future filled with possibilities. So, crank up Gloria Gaynor, because with the right tools, you will survive (and thrive!) in retirement.
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