Over a leisurely coffee meet-up with Tom, a dedicated reader of our blog, I was reminded of the intricate dance that retirement preparation entails. Tom, who stands a mere 2+ years away from stepping into the realm of retirement, sought to glean insights during his vacation stay in town. Our conversation flowed seamlessly, unveiling his commendable efforts in priming himself for the retirement voyage.

In the shared pursuit of deciphering the enigmatic question, “When Can I Retire?”, Tom diligently scrutinized the variables, crafting meticulous spreadsheets that mirrored my own pre-retirement endeavors. As we traversed the labyrinthine corridors of numbers, I found myself transported back to the days when my own retirement dreams were colored by these very calculations. Assured by his prudent preparations, I endorsed his targeted retirement timeline with optimism.

And then, a profound realization struck me.

Echoes of past conversations with seasoned retirees reverberated in my memory—a wisdom that had profoundly influenced my own retirement journey. This invaluable insight resonated with me, becoming a cornerstone of my post-retirement life. I shared this nugget of wisdom with Tom, and the metaphor he wove into the dialogue unveiled a profound truth:

“In the intricate tapestry of retirement planning, the hours invested in number-crunching are akin to sharpening the axe—a front-loaded effort that paves the way for a worry-free retirement, much like felling a tree with ease.”

Tom’s astute observation earned him a trifecta of admiration—footing the bill for our coffee, weaving a metaphorical tapestry, and enriching our dialogue with his insights.

Tom, your presence was a delight. This snapshot is dedicated to you, an emblem of our shared exploration:

image – retirement symphony Running the Numbers: The Art of Sharpening the Axe.

The 90/10 Principle Unveiled

Today, I unveil the tenets of what I christen as “The 90/10 Principle of Retirement,” a guiding light that illuminates the stages of retirement preparation and living:

“In the intricate dance of retirement preparation, 90% of our efforts are directed towards financial considerations, while the remaining 10% embraces the non-financial facets. Following retirement, the balance shifts, and the lion’s share of our time is devoted to the non-financial dimensions of our existence.”

Full disclosure—I humbly acknowledge that the inception of this principle is not my own. While the past three years of my retirement have been rife with contemplation on the matter, I had yet to articulate this phenomenon in words. The credit for this revelation belongs to a dear friend, Kevin Lyles, renowned as “Beach Walker” within Roger Whitney’s Rock Retirement Club. It was during my guest appearance at the Retirement Coaches Association Conference that Kevin first unveiled this principle through a LinkedIn comment:

image – kevin lyles retirement principle

For posterity’s sake, I bestow upon Kevin the honor of being the herald of the 90/10 Principle of Retirement. Congratulations, Kevin—a testament to your unwavering sagacity and the depth of our camaraderie.

Unveiling the Essence: Implications of the 90/10 Principle

Our discourse need not dwell on the numerical percentages; such trivialities are beside the point. Instead, the essence of the 90/10 Principle of Retirement lies in its capacity to sensitize prospective retirees to an inevitable shift—pre-retirement focus versus the pursuits that define post-retirement life. As Kevin astutely remarked, “By aligning these aspects pre-retirement, transition into retirement becomes all the more seamless under the guidance of retirement coaches.”

Amen to that sentiment.

Naturally, the importance of numerical calculations when charting the course toward retirement cannot be underestimated. These calculations remain pertinent even after retirement dawns. Yet, a subtle transformation unfolds—an evolution wherein these numbers wane in significance, casting a softer glow in the luminary of one’s priorities. The ratio may be 70/30 for some, evolving to 50/50 for others. Perhaps the principle is not an unyielding “Rule” but rather a navigational beacon, signaling the reality that beckons many retirees. Admittedly, the principle may not encompass those who grapple with financial constraints in retirement—a stark reality for some. It predominantly resonates with individuals like you, the ardent readers of personal finance blogs, who embark on the journey of securing their financial destinies. Use it as you will, but recognize its magnitude—a paradigm shift to bear in mind as you blueprint your retirement years.

May I extend the gift of shared wisdom, gleaned from those who have tread this path before. The lens through which you view “The Numbers” will invariably transform as you cross the threshold into retirement’s embrace. Acknowledge this shift, and in your preparatory years, turn your gaze a bit more toward the non-financial aspects of the vibrant tapestry that awaits.

To provide a glimpse into my mindset during the pre-retirement and post-retirement phases, permit me to embark on a journey—inviting you to traverse “Every Article I’ve Written.” This chronological arrangement allows you to partake in the voyage, regardless of where you stand on your own journey.

Pre-Retirement Deliberations: image – pre-retirement pondering

For those poised on the precipice of retirement, the numbers take center stage. I speak from experience. A retrospective glance reveals a near-obsessive immersion in numerical intricacies—a captivating venture into the unknown. In hindsight, my pre-retirement days were punctuated by intricate spreadsheets, meticulously crafted to ascertain the equilibrium between retirement income and expenses. Each permutation—impact of economic fluctuations, unforeseen expenses, bear markets, long-term care, and the specter of longevity—wove a narrative of calculated anticipation. Oddly delightful, this kaleidoscope of scenarios forged a foundation of readiness. Curiously, since crossing the threshold into retirement, I can count on one hand the instances in which I’ve revisited those spreadsheets.

An eloquent embodiment of this pre-retirement sentiment lies in the compilation of my Top 10 Posts, a testament to the allure of “The Numbers.” These works bear witness to the collective curiosity, mirroring the sentiments of many in our community:

image – top 10 pre-retirement posts

The numbers undoubtedly wield an enchanting allure, their significance echoing in the steps of those poised on the cusp of retirement. The symphony of calculations orchestrates an intricate dance, where every note is imbued with the anticipation of the grand finale—stepping into the world of retirement.