Episode 003:
How Will You Replace Your
Income in Retirement?

Josh shares the story of his love for Market Day chocolate-chocolate puddin' cakes, which he discovered while hanging out at Dave’s childhood home, and how it all relates to retirement. Wait for it! It’ll eventually make sense.

All about how to think about income throughout your retirement years. It starts with one basic principle: Locking in a stream that is predictable, safe and secure.

A look at some of the approaches to securing income, historically and over time:

• Commit to one employer, do the time and retire on a pension. (This option mostly doesn’t exist in the modern workplace outside of government and education.)
• A “three-legged stool,” the legs of which usually vary in size:
  • Social Security proceeds.
  • Some sort of fixed income (an annuity or pension).
  • Savings, which vary considerably among people with different profiles.

Josh has an additional approach to propose: He calls his model the “Pockets on Your Pants.” Various streams of retirement income can come from lots of different pockets, but it’s important to know what’s there, what’s where and have a written plan.

When planning for retirement, the immediate, medium- and longer-term horizon have to be taken into consideration. It’s essential to be looking at least a few years ahead.

What about entrepreneurs or independent contractors with unpredictable revenue streams? How do they figure it out? Josh offers deep thoughts!

• Retirement is not natural. It started in the late 1800s in Germany due to stagnant turnover in the workforce as the result of older people living/working longer.
• The mandatory retirement age of 65 was set completely arbitrarily.
• Entrepreneurs do alright with working indefinitely because by nature they’re scrappy and enjoy earning money and making enterprises go.
• For people accustomed to a regular corporate paycheck, a bigger shift of mindset is required if they’re going to keep working beyond 65.

Bookmark This: Josh will circle back to do a deep dive into the psychology of money on a future episode, so stay tuned!

The so-called “Great Resignation” has inspired a paradigm shift among younger generations who don’t want to save for some future rainy day. They want to enjoy life sooner – which should work so long as they’re factoring in an earnings timeline that extends beyond the traditional 65 years of age.

Josh projects that the population will live longer and have to work longer to maintain services and a desirable standard of living.

Demographically, Baby Boomers and Gen Xers have the older, traditional mindset while younger generations are unspooling and reconceiving what it means to work, ways in which to work and for what length of time.

Whatever your approach – whether you’re leaning towards a non-traditional work life that doesn’t anticipate retirement or dream of a fixed date on which you’re done, having cash reserves is never a bad idea. It provides peace of mind like nothing else!

Something to Ponder: What’s the best-ever Market Day food? We’re pretty wed to Ne-mo's Chocolate Chocolate Puddin' Cakes but it’s neck-and-neck with their full-size bagel dogs … which need to be brought out of retirement. Listen to the people, Market Day!