Retirement Planners And The Personality

The federal government has not “shut down” in more than 15 years. In 1996, and for 21 days, the government ceased ALL but essential operations, which included air traffic control, boarder control, and delivering the mail, to name a few examples. NON-essential services, such as National Park Services, museums and monuments, remained closed during the 3-week hiatus. In addition, Federal employees are NOT paid during a government shut down as well.

Currently, members of Congress and the President are treated differently from other federal employees, and would CONTINUE to receive their paycheck, even if there WAS a government shutdown. Some Congressmen recently created and signed a bill, stating that members of Congress and the President will NOT receive their paycheck for any period, in which there is MORE than a 24 hour lapse in the federal government’s ability to meet its financial obligations.

The MetLife study looked at what the most effective strategies were for planning and obtaining a successful retirement . The study concluded that the MOST successful approach to retirement comes from those who actively plan for unexpected surprises that inevitably come ones way. The study identified “10 different types” of retirement planners and the personality characteristics of each. Some of the most common personalities include: Snoozers, who don’t think about future risks at all; Immobilized Worriers, those who understand future risks, but whose worry prevents them from acting; and Preemptive Planners, who strive to preempt future risks, or at least their consequences. A Preemptive Planner, according to the study, exhibits the “best case strategies,” and is a retirement planner who: has a sense of self-reliance, thinks about the future, anticipates the unexpected, sets and lives by personal financial rules, gathers information and takes action. Preemptive Planners plan to have MULTIPLE sources of retirement INCOME and ASSETS; such as a defined-benefit plan, or 401 (k)plan, other investments, savings and annuities, as well as Social Security and a good health insurance plan or supplement in retirement.

The “unexpected” circumstances were identified as the “daunting dozen” challenges. “Unexpected” surprises include: declining income or job loss; loss or erosion of a pension; catastrophic illness or disability; loss of health insurance or rising health care costs; death of a spouse; care giving demands; financial problems with children or other family members; declining investment funds; loss of social security benefits; living too long or outliving savings; a combination of these events, and even a financial windfall – a welcome, but unexpected scenario nonetheless. Unfortunately, FEAR of the “unexpected” events in life produces INACTION, rather than ACTION, in many of the personality types.

Ok, so you may be asking yourself, “Matt, what does all of this mean to me?” Now that we’ve “checked” the facts, let’s “balance” this news using our Checks and Balances process to determine what action YOU should take TODAY.