“You have two ears and one mouth, use them in that proportion” was the one lesson I tried to always put into practise when I decided to become a financial advisor many years ago. Today, I am grateful for the non-financial lessons learnt from clients over the years as the wisdom so imparted to me would have, in reality, taken many lifetimes to learn.

I met recently with a new client that intends retiring next year but had never previously made use of the services of any financial planner. She was to retire from a provident fund after being employed by the same employer for over 30 years so her (and her husband’s) retirement capital was by no means insubstantial.   Prior to our meeting she was referred to another planner to discuss her pending retirement but this planner had upset her because “he was only concerned about the money side of my early retirement decision and didn’t hear that it was important to my husband and I that we wished to spend as much time as possible together”.

A few years ago, Kobus*, a client of mine for +20 years, confirmed the listening lesson while we were doing some pre-retirement planning calculations.  We have, over the years discussed his retirement dreams and have had interesting discussions as to, not only his financial, but also his non-financial interests. At one point Kobus mentioned the “5 C’s of retirement” he had read somewhere. I jotted these down as I intended to share these valuable gems of wisdom with others.  As his financial advisor for many years it was clearly my job to focus on the last “C” as without the last “C” many of the other “C”’s would be difficult to explore. But, by having a good knowledge of his life plan and what stimulated his emotional behaviour I believe that together we were able to produce a strategy that would enable him to have an enjoyable retirement (financial and non-financial).

What were those “C”” factors that supported the financial part of his retirement plan?

The 6 important C’s of Retirement as per my client Kobus*

Connectivity –  engage with people who stimulate and energise

Kobus has retired and has joined one or two community service clubs. He enjoys the outings and say he has met some “amazing people who have amazing life stories to tell”.

Curiosity -travel, explore and learn

Not only has he taken his wife on some amazing holidays, Kobus has been reading books, exploring the internet and generally been discovering extremely interesting “little known” spots around his hometown.

Challenge yourself – mentally and physically

As a retired professional, not only has he offered his services as a mentor and a consultant but also has maintained his fitness levels by walking, hiking and even pilates. He says what is nice is that he is able to accept mentoring and consulting work and do his exercise at a time that suits his retirement activities (and, importantly, those of his wife) .

Creativity – be open to new ideas, think out the box

By getting involved in novel leisure activities (have you ever played “jukskei” or petanque?) or even the starting of a small business unrelated to your pre-retirement occupation can transport your  daily routine to an entirely different energy level. Just be certain that any intended business activity does not harm your retirement capital.

Charity- give back to the community

This does not necessarily entail the donating of your retirement monies but can be achieved by the giving of your time to those charities that are close to your heart.

Cash and capital – how much is enough?

The strategy to achieve a sufficient amount of this “C” needs to be in place many years before your retirement date. It starts with you (a) discussing this important matter with your significant others and visualising your retirement dreams. I suggest that they be based on the other 5 “C’s”  (b) setting these dreams down in ink on a piece of paper and (c) performing a mathematical calculation using your current financial situation and other relevant projections to carry out a reality check. Should you not be able to do these calculations, consult a financial planning professional to assist you, it will probably be the most beneficial  fee you will ever pay!

PS: More than a year into his retirement I can honestly say that Kobus has created sufficient wealth to be able to reap the fruits of his financial and retirement planning strategy. It is, of course, pleasing to say that, during our ongoing reviews the assessment of his portfolio and necessary calculations indicate that his “Cash and Capital” will be able to support the other 5 retirement “C’s” for his and his wife’s lifetime.

*not his real name