My Husband Retired!

For the past 21 years, my husband, Lance, has been dedicated to the same company. He started at the ground level as a contract equipment installer, and when he left, he held the position of Chief Relationship Officer. With 23.5 years of marriage under our belts, Lance's departure from the company marks a significant change for our family.

We've always known the possibility of job loss or change could happen, and have worked over the years to be prepared for that possibility. As Lance began more seriously contemplating leaving, we understood the importance of preparing ourselves for this major life transition.

Big life changes—whether it's marriage, welcoming a new baby, switching careers, going through a divorce, or retiring—require careful financial planning. Here are some steps we took to prepare ourselves financially for this significant shift:

1. Make a plan: We took the time to envision how this change would impact our lives. Recognizing Lance's need to decompress and transition, we included in our plan a full month for him to unwind. As he is the primary breadwinner, it was crucial to ensure we could cover our expenses during this period. We also acknowledged the possibility of a prolonged job search and made financial provisions accordingly. This involved reassessing our budget priorities and having candid conversations with our children about the adjustments that lay ahead. We also looked into the options of alternate income streams. If the change is job related, plan what you will do with any retirement accounts you have -- leave them, roll over to the new company plan, or roll over to a Roth IRA. Consider the options (with an advisor if needed) that will best meet your needs.
2. Save up: Anticipating the need for Lance to ease into the next phase of his life, we diligently saved up several months' worth of expenses. Any surplus income from bonuses or unspent categories in our budget was earmarked for this purpose. Having a financial safety net in place alleviated the stress of wondering how we would manage financially during Lance's transition period.
3. Pay off debt: We've always prioritized living debt-free, aiming to settle any debts as swiftly as possible. By reducing our financial obligations, we positioned ourselves for greater financial freedom as Lance approached retirement. While becoming entirely debt-free might not be feasible for everyone, minimizing debt prior to a major life change can significantly ease financial burdens down the road.
4. Start living like the future is now: We adjusted our lifestyle to align with our anticipated future budget. Living on a reduced income ahead of time allowed us to save additional funds, providing a cushion for unforeseen expenses and ensuring a smoother transition. Making gradual adjustments to our spending habits helped us acclimate to the idea of living on a tighter budget without experiencing a sudden shock to our finances. Our March no-spend month helped with this.
5. Ensure partnership alignment: If you're navigating financial changes with a partner, it's crucial to ensure both parties are in sync regarding the plan of action. Open communication and mutual agreement on financial decisions are essential. For those embarking on this journey solo, seek support from trusted individuals who can offer guidance and encouragement. Facing the unknown can be daunting, but doing it with someone by your side makes it a little easier.
6. Develop skills for other income streams: Knowing a job change could happen at any time in his career, Lance has always worked to develop other skills which he could use to earn money if it were ever needed. He loves woodworking, designing CNC files, and does some stock trading. We also have an apartment we rent out and other investments we can pull from.

As I write this, it's only been a week since Lance bid farewell to his office and drove his final commute home. Already, the transformation is evident—he's less stressed, happier, and brimming with excitement for our future. While uncertainties still loom, we're eagerly embracing the next chapter of our lives. Our years of financial planning have laid a solid foundation, and we're ready to navigate whatever comes our way.