What’s the Difference Between an Old Man and an Elderly Gentlemen?

By |2020-04-12T23:59:18+00:00January 5th, 2014|Retirement Planning|

Mature gentleman holding a piggy bank and US dollarsHere’s a question. What is the difference between an old man and an elderly gentleman?


An old man is someone who has run low or runs out of money.  Money provides choices. When you run out of money, someone else makes those choices for you. Where you will live, what you’ll eat, how you’ll live, where you will go. An old man has lost control of his life, subject to his now limited income and his now limited choice.

An Elderly Gentleman is in TOTAL control. Because his money hasn’t run out, he chooses where he lives,  how he lives, what he eats, where he goes.  The Elderly Gentleman has planned to never run out of money!  He has planned for sustainability. It sounds simple, right?

The old man didn’t plan to run low or run out of money. Exactly!  He didn’t plan.

The Elderly Gentleman did plan, and that’s the difference.

It’s all well and good to rely on assumptions:  How long you and your spouse will live, what your living expenses will be- 10, 15, 20 years down the road — what your health will be, etc.

BUT, isn’t it better not to assume? We have no guarantees about any of those things. FAR better to PLAN for the worst, (that you and your spouse will live a long time, that your living expenses, taxes, healthcare will all increase, and that your health will get worse the longer you live.)

But that’s only part of the equation.  How do you transition from the accumulation of assets to the income phase of your life-your Retirement years?  And, how do you make sure that your rate of withdrawal is sustainable?

So, HOW to do this?

Well, first of all, just like an addict first needs to recognize the problem and admit it. EACH  of uEachs to get our heads out the sand and face up to the absolute need to plan while you still can.

Sit down with your spouse:

-PLAN that you and your spouse will live another 25 or 30 more years.

– Now look at your income: assuming you’re not working—we can’t work forever, right?: Company Pensions, Social Security, Annuities, Dividends, interest, Rental income.

Now add up the income that is guaranteed: Social Security? Annuities? Company Pensions? The other income generating assets are NOT guaranteed.

-A plan that your expenses will exceed your expenses today.

– Realistically look at your checkbooks and see where you are spending your monies. Make a list of “needs” and “wants.”  Then estimate what those expenses will be 25 or 30 years from now.

-Realistically look at your financial assets. If you have stocks, bonds, mutual funds, can you guarantee that those funds will always grow? Remember,  when you start taking withdrawals you start losing the effect of compounding, just as you do when you take losses.

So, HOW much Money will you need in Retirement? Impossible to say! Too many things we don’t know and can’t predict. My answer to that question is “all you can get your hands on!” Or a better way to put it, all you can guarantee that won’t run out, no matter how long you live!  You can’t have too much money.

The trick is to leverage the amount of money you have now. Make the most out of it! Stretch it out!

Make sure it never runs out!

But do it on guarantees,  not assumptions.




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About the Author:

Rick has helped thousands of people find the safest approach to a stable and satisfactory retirement. Rick is a Certified Retirement Financial Advisor (CRFA), has been advising retirees for over two decades in Safe Money and Lifetime Income strategies. Website: safeharborfinancial.retirevillage.com

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