FidelityNow: Peter Drake: Life after retirement

[00:00:04.371] My reflection is that, you really have a relationship with retirement

[00:00:08.875] and if you think about what a relationship is, both sides have to give

[00:00:11.711] something, both sides has to get something, it's going to be the odd rocky period.

[00:00:17.050] But if you contribute, retirement will give you things, whether you

[00:00:21.154] want them or not. And think about it as a relationship and if

[00:00:25.291] you're proactive in retirement, you're likely to have a good time.

[00:00:28.862] I've been at it for 10 years now, a couple of pieces of "Rocky Road", some health

[00:00:32.232] issues. But here I am, 10 years out, feeling great,

[00:00:36.770] physically active, mentally active.

[00:00:39.339] And so, if you treat it right, it's a great period.

[00:00:42.642] Retirement is more difficult.

[00:00:44.711] There are more things to consider, financial market volatility, inflation,

[00:00:48.982] economic uncertainty, all sorts of things.

[00:00:52.719] How do you best prepare?

[00:00:54.988] We know that there are more people are using do-it-yourself

[00:00:59.559] retirement planning and I know there are a lot of tools out there.

[00:01:02.562] But if you look at that report, the same thing is true now or more so than it

[00:01:06.499] was then. People who use an advisor, people who have a financial

[00:01:10.670] plan, a retirement plan, people who have a written plan are

[00:01:14.741] better prepared for retirement, physically, mentally, socially,

[00:01:19.345] financially. But then in retirement, they worry way less about

[00:01:23.783] their savings running out than people who don't have that sort of plan.

[00:01:27.253] And remember that we did a huge amount of work on withdrawal rates,

[00:01:31.891] but there's still uncertainty.

[00:01:34.027] So the importance of working with an advisor

[00:01:38.731] is more so now than it was when we started it 20 years ago and that left off

[00:01:42.469] the page. What do you want your retirement to be like?

[00:01:46.005] What do want to do?

[00:01:47.707] How much do you wanna spend? Have you had a passion to do something

[00:01:51.978] that you've never had the time to do that maybe is going to cost you some money?

[00:01:55.615] You've really got to think about that and it's not going to be, I don't think

[00:01:59.018] it's going to be a simple conversation.

[00:02:01.187] You have challenges when you're working, you have challenges in retirement.

[00:02:05.525] So it's to envision that

[00:02:08.628] and once you've begun to do that, then the advisor will find it, I think,

[00:02:12.298] relatively easy to help you do the plan that will get there.

[00:02:16.769] Now, there's going to be pushback.

[00:02:19.038] Somebody's going to say, well, forecasts go wrong.

[00:02:21.107] Of course they go wrong, I've done a lot of forecasting.

[00:02:23.143] I don't want to tell you how many. You're were always right though.

[00:02:25.645] Well, I wish. But the point is, even if a forecast

[00:02:30.283] doesn't come exactly to it, you've got a benchmark.

[00:02:32.852] You might decide that that thing that you always wanted to do, eh, that's

[00:02:36.256] really not so much fun after all.

[00:02:38.191] But you've got a benchmark to work off to change course.

[00:02:41.394] So doing the forecast, working with your advisor, that's really important.