I have often addressed the importance of money in retirement planning. But what happens when you have amassed all the money needed for a long retirement, only to find that money will not be enough for enduring happiness and peace of mind?

It’s good to have a well-laid-out financial plan for retirement, but of equal importance is the non-financial plan that will allow you to enjoy a purposeful and fulfilling life.

Recently I had an insightful discussion with a retiree who wished he had made better decisions about his future while in his 40s. Having a plan of action for retirement is a strategic way of handling your financial, family, and social affairs. What kind of lifestyle do you want to have? Whose lives will you impact with your wisdom, knowledge, or skills? What new hobbies will you learn? Having a vision of your future self is an important step because your actions will lead you to your goals.

You can be wealthy and bored, and boredom can lead to depression and stress. During the working years it’s important to allot time for family, social interactions, networking, and leisure activities. This makes it easy to transition into retirement.

All activities have a cost and should be captured in a financial plan. In the same way we budget our money, we should do the same with our time. Managing relationships is as important as managing money. After all, long-lasting relationships are necessary for a wholesome life. Who will you enjoy your money with? Friendships and networking can boost healthy living, and the social benefits will enrich the lives of others within the home, community, and wider society. Retirement is an opportunity to create memories with family and friends and extend support to others by giving back and helping the needy.

World-renowned investor Warren Buffett was asked by a group of college students to define success. He responded: “If you get to my age and nobody thinks well of you, you’re life is a disaster.” He explained that when these students get to his age they will measure their success “by how many people you want to have love you, actually love you”.

Buffett said he knew people who are wealthy but have nobody who loves them. He concluded that it was the true test of how they lived their lives. The investor and philanthropist recognised that, with all the wealth in the world, love cannot be bought. In his words: “The more you give love away the more you get.”

The co-founder of the Giving Pledge, which invites the world’s billionaires to use their resources to assist the needs of society, Buffet pledged to give away 99 per cent of his wealth during his lifetime or upon his death. In his pledge letter, he stated that his family is not making a sacrifice in giving up 99 per cent of his wealth. He considers time to be his most precious gift, not money. He is proud that his children have given much of their time and talents to help others. Buffett believes that sharing one’s time and skills can be more valuable than money.

He made an interesting observation about owning numerous assets: “Too often, a vast possession of assets ends up possessing the owner.” Of note, even the
Bible warns that if riches increase we should not become high-minded nor trust in the riches, but in God, who gives us all things to enjoy richly.

The assets Warren Buffett treasures most are his health and “long-standing friends”. Buffett acknowledged that being born a white male removed vast stumbling blocks that most Americans had to contend with at that time. He regards his family’s giving back to society as not guilt but gratitude.

Buffett has seen those who work tirelessly in serving others rewarded with medals and thank-you notes, while the rich got richer. He believes that giving away 99 per cent of his wealth can have a significant impact on the health and welfare of society.

There are individuals who have accumulated huge amounts of money for retirementbut did not have a plan in place for managing their money while in retirement. This has led to unwise spending or investing, which has proved costly and, in some cases, they incurred major financial losses early in retirement.

Being prepared for retirement is more than just having a retirement nest egg, it’s having the wisdom to plan for the retirement lifestyle that is envisioned and exercising proper judgement in handling financial affairs when you retire. Retirement provides the opportunity to understand the value of time, the joy of friendships, and building relationships through mentorship and support groups. An engaged mind, health, and wellness are valuable assets in retirement.

Grace G McLean is a financial advisor and retirement specialist at BPM Financial Limited. Contact her at gmclean@bpmfinancial or visit the website: www.bpmfinancial.com. She is also a podcaster for Living Above Self. E-mail her at livingaboveself@gmail.com.

Grace Mclean