Often we take our health for granted, not taking advantage fully of our capabilities to enjoy exploration and experiences. I like many others fall within this trap of “not enough time” or “not enough money” while having health on my side. However when time and money if ever appears to be on your side, it is not uncommon to have health and energy as the deficit. I believe this, not just because it is something I have read about but because I have held hundreds of intentional conversations with those whom are in retirement.
Often the story goes:
“My husband and I worked until 63 year old where he 12 months later passed away of a massive heart attack and I had to quit because of my health” (Health relating to orthopedic complications, cancer, or neurological complications which were of course not considered prior to onset).
Or
“We purchased a travel camper with plans to travel the country, we planned to travel when we retired, but after he passed away it was too much for me to do alone. Now I maintain the house and yard. That keeps me busy.”
These are the scenarios this book had me reflect on.
The book starts of telling a story about a couple in their 30’s where John the husband at the age of 35 years old was diagnosed with a brain tumor which in just months took his life. It was not until that point, that they began trying to live life’s experiences, after only little time was left.
Personal reflection, being 32 and have already had several high school classmates pass away before me (of a high school of just 200 students total). We are not invincible in our youth and health is not promised, especially when not prioritized intentionally.
There is a book referenced: Your money or your life, which is paraphrased to express that time is traded for money in most work thus thinking of things in time. Example: You buy a shirt that costs $180, you’ll likely not see many people wearing it as it is priced to be unique. Say you make $20 an hour that shirt now cost you 9 hours of work (more than just money).
“Life the the sum of your experiences”
Some book recommendation:
- Start actively thinking about life experiences you would life to have. What memories and experiences would you like, that would be memorable and meaningful?
Invest in experiences:
Moments you may remember for the rest of your life, moments you’re happy to have had. Like investing in IBM and receiving dividends for holding that stock, experiences give memory dividends you can reflect on.
“Early” is right now when it comes to building more experiences in life. Waiting only reduced the dividends received from such experiences. Although weighing out the cost of not compared to later could be considered. Now means you may not have the means to fly business class, or have experiences that may be more expensive. However, later means you’re trading off energy and health which may affect your ability to take advantage of more adventurous experiences.
But Retirement Savings? (I am all with the FIRE idea of saving as much as possible early but appreciate this books alternative perspective to find balance.
Die with zero also refers to several studies which gain my interest and buy in: according the the employee benefit and research institute there are some key findings to consider with retirement:
- When retired, your assets will likely continue to compound even with a draw down. When you are pulling out of retirement funds, you’re still accruing interest on the funds not withdrawn.
- Retirees with $500,000 or more before retirement spend down a median of 11.8% of their funds. Leaving $440,000 left. The spending percentage actually lessens with growing retirement funds.
- 1/3 of retirees actually continue to increase their asset wealth after retirement, thus continue to accrue more than they spend.
Some people make plans to spend their savings after retirement only to be setback by health and energy deficits. They find themselves more comfortable staying close to home. Of course one could save for medical expenses, but detrimental expenses may rely heavily on insurance. Let us go back to cancer, regardless of how much you save. The expenses will cost in the millions, thus the experiences you could have had are gone and we still do not have the funds to cover medical costs out of pocket.
Giving away inheritance:
Let’s say there are children who would benefit from you having $400,000 left over in a bank account after you pass away, assuming you have everything situated legally as to not cause a ton of stress and legal fees with court systems. The average age for inheritance is 60 years old. By then, most people will have accrued enough wealth but are in a declining health themselves. A scenario of a lady named Virginia was a single mother with no financial support and was “mostly as the edge of poverty.” She eventually remarried and was able to keep a part time job attaining financial security. By 49 years old her mother died at age 76 leaving her with $130,000. Virginia was no longer at the brink of poverty at this time, as of course it was a nice bonus. The finds would have been significantly more impactful earlier in life.
Examples given of spending the “inheritance” while living:
- Paying for a wedding, funding a 529 education fund, a family trip while everyone is healthy.
If no funds are eft for family members, charities are referred to as well. To summarize this: Charities also would benefit more from an active donation sooner than later.
Avoiding autopilot
Living life intentionally, give yourself moments to reflect on your time line bucket list and put this together. Spending your money with bucket list items gives you the memory dividends later in life as our health declines. As having a lot of money is nearly worthless at the beginning and very end of life.
Think about the 3 basics people need to get the most out of life:
- Health
- Free Time
- and Money
Although this is just a glimpse of the information taken from this book, it is one of the many I have shared that I recommend. Moving forward I without a doubt will continue to maintain my current savings rate, but consider being more intentional with seeking experiences out of life while I do still have my health.
As I have heard before, life is about balance. This is of course easier said than done. One question I ask myself moving forward is one I will challenge you to do as well:
Question: What is your experience bucket list and what is the timeframe on this?
Action: Write it down somewhere you can refer to is often. Think about what you could to do get the most out of that experience and at what age and physical capability may be required to optimize this experience.
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