After 35 Years Of Service - Retirement Is Around The Corner

On Tuesday, January 9th my mom tendered her intent to retire effective February 14th. This is the beginning of the end of a career that lasted 35 years.

She started her career at the General Hospital at Passaic back in 1983, the year I was born. It was a small community hospital, and still is but modernized. It's gone through ownership changes, hirings, firing, protests, union troubles. And she's gone through the ringer of the ICU, NICU, Heart Room, Recovery Room, ER, and back to the ICU for the majority of her career there. So both hospital and employee have gone through everything together. Quite an amazing feat!

As she sat in the chair of the Human Resource contact, mom couldn't help but cry. The Director of HR came by to wish her well and to thank her for her many years of service, welcoming her to come back anytime to visit or to help out part-time. Mom said she intends to volunteer some of her time at the hospital. Obviously it's hard to part with the place.

As we walked through the different units informing a few of her colleagues of her impending early retirement, she would say things like, "this is where my two children were born" to give them perspective on her long tenure with these people. Some were jealous, but most were happy that she was going to enjoy her time without work. Even the new head nurse, who we also informed out of courtesy, who had never met her previously said he had heard good things about her.

Mom is obviously a friendly face in the hospital because everywhere we walked someone would smile, say hello, ask her how she was doing, or even say that it's been a while since they've seen her. Which is true, she's been out for a while on disability (foot surgery), and will continue to be out until February (doctor's orders). Whether it was a sanitary engineer, security service worker, transporter, or any of the many doctors and nurses - they all said hello and when she informed them of the news, they all congratulated her.

We collected her belonging from her 2 lockers in the locker room. And she decided to come back one more time before her last day to bid farewell to the other staff she didn't see that day. I know she was sad to leave for the day and know she wouldn't be an employee there at some point in the near future, but I also know that she will enjoy her retirement to the fullest possible.

The experience made me happy and proud to witness the impact she's made on a small NJ hospital and the staff and patients that come in and out of it on a daily basis. It was great to see how much my mom loved the hospital and her job. But it also made me wonder... Do people even stay at their jobs that long any more? It's a shame they don't because a lifetime of dedication is for the benefit of the institution and a clear indicator of character.

Congratulations Mom!

Your Parents' Financial Well-Being - And Yours Too!

If you're in your 30s, and you have parents who are nearing retirement or who are getting older and less able to make wise decisions, then it's my advice to you to check on their financial well-being. Heck, if you're in your 30s then you better make sure that you're capable of managing your own money and understanding what everything is and means.

This post comes as a warning to all my readers, friends, and family just based on recent experience with my own parents.

I have an Accounting background by education and profession, so I like to think that I'm fortunate enough to be a little more financially savvy than some people. It also helps that I read through and try to understand any and all money matters that I encounter. You should too! Don't just glaze over something. Make sure you understand what you're receiving or paying for.

I think a huge problem with Baby Boomers and Generation X is that they didn't have the resources to educate themselves on all the financial opportunities available to them. These generations didn't have as many reliable people to guide them to make good decisions. And a lot of information was relayed by word of mouth from others who were just as inexperienced or unfamiliar with the topics as the next person.

That being said, today was one of many days in trying to assist my parents with their situation, concerns, and planning. While having a discussion with my mom about her and my dad's future plans about retirement, money, and timing of it all, I could not help but be annoyed / frustrated and even in disbelief at some of the things we were talking about. So I compiled a few suggestions / thoughts for others who may be able to help their own parents, friends, and family.

1. The older they are, the simpler it needs to be. Less is more. Close bank accounts. Forego using too many credit cards. In both of these situations, I like the number 2. Two bank accounts and two different credit cards are more than enough to get them through old age and retirement. My dad hates to "put all [his] eggs in one basket" so 2 of each breaks it up enough in my opinion.
2. It's hard to remember all those passwords. Along the same lines, once you've reduced the number of accounts open, you'll have also cut down the number of Usernames and Passwords required to be committed to memory. Because let's face it, memory deteriorates with age. If there are any other accounts you can help them close, you're only helping yourself for the future.
3. Take inventory. Since memory fails more often, you should probably help your folks keep track of their passwords, account numbers, PINs, etc. in a safe place, of course. Whether it be by pen and paper or an Excel spreadsheet, you've got to help them organize and keep track of what they have. And if they have to use the "forgot password" function, make sure to have them update their records.
4. Money doesn't grow on trees! Believe it or not, it's possible that your parents don't know where all their money is coming from. It is also possible that they don't know who they are paying or why. So once you've taken inventory (or maybe in parallel with taking inventory), you should help organize the to/from of their income and expenses. If they're anything like my parents, they will have a recurring expense (or two, or three) that they'll have no idea the reason or the recipient. You may uncover a long forgotten 401(k) that was never rolled over from a previous employer. You may realize that they're paying for something that is a duplicate of something else. And they may surprise you with the amount they've got stashed away. 
• Things to pay attention to: 
• 401(k) / 403(b)
• Traditional & ROTH IRAs
• Investment Portfolios (especially if they have multiple brokerage accounts)
• Multiple Bank Accounts (some seldom used)
• Foreign Accounts (bank / investment)
• Automated / Recurring withdrawals on their checking / savings accounts. Make sure to check monthly, quarterly, and annual frequencies.
• AutoPay on their credit cards (monthly, quarterly, annual)
• CDs (certificate of deposit)
• Safety Deposit boxes
• Pension and any other Retirement accounts
• Annuities
• Life Insurance policies
• AD&D Insurance policies
• Disability Insurance policies
• Other Insurance policies
• Social Security or Supplemental Security Income
• Medicare / Medicaid
• COBRA
5. Plan it out. Brush up on your Excel skills and draw up a budget for them. Show them what they will have in income and budget out their expenses. If you can find ways to cut down their expenses, make sure to follow through with the processing and not just suggest it. Don't forget to leave them some money to play with. After all, they've earned it! 

In my opinion, the earlier you get started on these processes, the better off you are, not to mention your parents. I think at first they will be apprehensive and may even feel as if they're still capable. But the reality is that their abilities will degenerate faster than you think with every passing year. At the onset, you have to convince them that this is for their own good. They may thank you later, or they may just leave you some of what they've saved! 

It's an arduous process, but good luck! 

Maybe this is what retirement feels like

Over the past week or so, people at work have started to approach me and ask about leaving my position at my current job. Most people have heard it through the grapevine, and others I've told personally. In either case, I've gotten many well-wishers and many questions about the trip. Overall it has been very positive.

In some sense, I feel like I'm leaving, never to return. Co-workers are congratulating me and telling me what a pleasure it's been to work with me. Others have applauded my decision to leave. Some just wish me well in my future endeavors.

It's a funny feeling to be treated this way. It's positive and happy. If this is what the end of the road to retirement feels like, I almost want it not to end.

Anyway...

Mom / Dad - I've experienced what retirement feels like before you. Do you think you are ready yet?

Looking forward to New Year's in Sydney. Anyone want to join us?!