During a recent trip to New York City, my daughter and I wandered through the streets of SoHo and stumbled upon the NYU campus. As we admired Washington Square Park and soaked in the city’s vibrant energy, she, just 13, expressed her desire to attend college in an urban setting. With her passion for filmmaking and sound design, she turned to me and said, “I could see myself here at NYU, Mom.” As I watched her navigate the chic boutiques, I felt an overwhelming sense that I had plenty of time to prepare for college expenses.
Curiosity got the better of me, so I researched the costs of attending NYU. I was stunned as the numbers flashed before me, and I quickly pulled my husband out of his TV daze to announce that we had a significant issue to address. Until that moment, I’d been blissfully ignorant of rising education costs, but it hit me hard: retirement and the end of our careers are approaching faster than I thought.
In just a few short years, we need to step up and act like adults! We’ve got kids to send to college, retirement celebrations to organize, and adventures to plan with friends who have saved their entire lives for a bus tour through Tuscany or a visit to the Blarney Stone. My dream of being a carefree beach bum with no worries other than when my next margarita will arrive might not be as far off as I had imagined.
This realization prompted me to think strategically about our future because those tropical drinks won’t magically appear on their own. Thankfully, my husband is accustomed to my moments of panic and is always ready to help with our financial planning since he’s the responsible one in this partnership. Here’s our game plan so far:
1. Have an Open Discussion About Retirement Goals
After my initial shock wore off, my husband and I engaged in a candid conversation about our retirement aspirations. Surprisingly, while we shared similar visions, our desires differed slightly. He pictured us working into our 70s (not necessarily in our current professions), while I dreamed of retiring the day I turn 55. We recognized that we needed to bridge this gap, and we’ve had numerous discussions since to find common ground. Starting this dialogue now will help us align our plans and make those tropical drinks a reality sooner rather than later.
2. Evaluate Your Finances Honestly
When juggling kids and a demanding job, it’s easy to rely on convenience spending—dining out, dry cleaning, and other services that make life easier at the moment. However, fast-forward a decade, and that money could have been better invested in your retirement or college savings. Assessing your discretionary income and tracking your expenses can be a wake-up call, but consider the beach house you’ve always wanted. Cutting back on a few dinners out and reducing the cleaning service frequency could lead to significant savings, getting you closer to that sandy paradise.
3. Strengthen Your Relationship for a Shared Retirement
This may seem obvious, but as you approach retirement, you realize that the daily chaos of raising children and their activities will no longer be part of your life. Recognizing that you both may have developed separate interests over the years or that quality time together has dwindled is crucial. By addressing these issues now, you can create a solid foundation for your relationship as you embark on long beach walks and global adventures together.
4. Prioritize Estate Planning
No one enjoys discussing mortality, especially when it comes to not being there to see grandchildren grow up. But death is a reality, and discussing it while you’re still healthy can give you a sense of control over your assets. Deciding who will care for your children or who inherits your cherished heirlooms doesn’t have to be set in stone; you can update your plans as your family changes.
While college and retirement may seem distant for many of us, the truth is they’re approaching sooner than we think. I’m reminded of how quickly my children have grown, and I know these coming years will pass just as fast. On those hectic days when the dog is barking, dinner is delayed, and a last-minute project is announced, it helps to remember that my efforts today will ensure I can enjoy margaritas on the beach in retirement—because, absolutely, I’ve earned it.
Summary
As retirement approaches, it’s essential to prepare financially and emotionally. Start by discussing your shared retirement goals, evaluating your finances, nurturing your relationship, and planning your estate. These steps will help you transition into this new chapter of life smoothly and enjoy the rewards of your hard work.