When it comes to searching for the best investment portfolio for retirees, here are 3 different ways to view wealth management for retirement.
Retirement is a common – But much more misunderstood – Concern.
Many people think of retirement as a time when they stop working altogether, and have to subsist on a pension. However, times are changing, and many people now realise this is an archaic point of view.
Here are three other ways to see wealth management in retirement:
There Is No Correct Age for Retirement
The media abounds with stories of people who retire at 30 or 40. We tend to assume these people are wildly successful. But while they have probably amassed more wealth than the average person, many of these retirees are not sitting on huge goldmines of $10 million or more.
Rather, most have modest financial goals which allow them to leave the rat race early. For example, consider someone who works till the age of 40, and has saved and invested diligently. If this person is willing to live on $2,500 a month or less for the next 50 years, even $5 million may be enough for her to retire immediately.
If free time is more crucial to your life goals than material luxury (you want to be a painter, write a novel, only look after your children, etc.), then you need not plan your retirement around a specific age, such as 62 or 65.
Instead, you could have your private banker work out how to reliably get passive income (of an amount you are happy to live with) until your 90s. If this amount is modest enough, it may be obtainable through a mix of different assets, from perpetual income bonds to dividend pay-outs from blue chip stocks.
So you do not need to be tremendously wealthy to consider early retirement. The main concern is how much you are content to live on, and whether you prize having more time over material luxuries.

Working Less Can Be More Rewarding Than Not Working at All
Many successful people work past the age when they could stop. Warren Buffet could have stopped working in 1990 and still live the high life, but he continues to work at Berkshire Hathaway. You will notice the same trend with people like Anthony Bolton, Bill Gates, or the late Steve Jobs. Most successful people enjoy their work (perhaps that’s why they’re successful in the first place), and it is part of how they define themselves.
If you find yourself in this position, consider if your financial planning needs to involve you stopping work completely. Perhaps you could consider working and earning a bit less, instead of not working at all.
For example:
A high income earner in his 40s (let’s call him Andrew), is a top lawyer who works a six day week. Although Andrew used to be passionate about his work, he has recently begun to dread it. He has stomach ulcers from the stress, and is growing estranged from his family due to the hours he keeps. Through his hard work though, Andrew has amassed about $5 million in his bank account.
After a conversation with his wealth manager, Andrew comes to the conclusion that he could stop work immediately. However, doing so will greatly impact his lifestyle, lowering his income to about $3,000 a month. Unlike the people in point 1, Andrew will not be comfortable with this amount.
Andrew and his wealth manager work out an alternative plan. Rather than stop working, Andrew stops being a lawyer and works as a consultant instead. This reduces his income, but to about $15,000 a month instead of a drastic drop to $3,000 a month. Andrew would also work shorter hours, and would no longer need to keep a six day week.
After a year, Andrew finds his passion reigniting, his relationship with his family growing stronger, and his health improving. Thanks to the investments suggested by his wealth manager, he does not feel the impact of the lost income – his returns are sufficient to make up for the reduction in pay.
If you’re interested in this sort of semi-retirement, speak to one of our expert wealth managers for help. Our quick questionnaire can put you in touch with one in minutes.

Retirement Can Mean New Beginnings, Not Just Endings
As we live longer and healthier lives, it is increasingly common for retirees to become self-employed. Many former senior managers or professionals have amassed a wealth of experience, and have a good idea of what their industry is lacking. This leads them to start their own businesses and consultancies.
Some retirees even go into new careers, out of curiosity or just to keep busy (who says you can’t be a dog groomer or hair stylist just because you’re past 60 and a former CEO?)
This kind of retirement can keep you active and truly alive, as you will continue to meet people and learn new skills. Frederick Herzberg, an American psychologist, conducted studies in The Motivation to Work that show human satisfaction comes from manageable challenges and constant learning – not from the total cessation of work (which can in fact cause depression).
The key to this type of retirement is to not be dependent on the income of your new business / job. You want to be in a position where, if you felt like it, you could change jobs or companies at will. You are working for fun, not for profit. A good wealth manager can balance your portfolio such that you stay financially independent, and the income considerations from your new paths are just an afterthought.
What are your retirement ambitions? Let us know, and we’ll find the experts to make it happen!