What Crisis? Making Midlife a Time of Anticipation

In 1969, singer Peggy Lee had a big hit on the airwaves with the song, “Is That All There Is?” In the song, the lyrics take listeners on a memory-tour of their lives, from childhood through old age, recounting various big moments in life and, at each point, asking, “Is that all there is?” The song is a sobering reflection on the brevity of life and the ways we find meaning—or the lack of it—it our various experiences.

We’ve written previously about how financial and other priorities shift as we go through the various phases of life. And the fact is that most of us probably ask ourselves, at various points, “Is that all there is?” Especially in the midlife phase, we tend to look back on what we’ve accomplished up to this point and how those accomplishments match up with the expectations we had for ourselves when we were younger. For some, unfortunately, the mis-match can lead to what is commonly called a midlife crisis: a sort of emotional—and sometimes, financial—meltdown that accompanies the effort to make up for the perception of lost time and lost opportunities.

But it doesn’t have to be that way, does it? There’s no reason why midlife can’t be an exhilarating time, as we assess how far we’ve come and look forward to where we still want to go. On the one hand, it’s true that midlife may be a time when many are coming to grips with the aging parents or even the passing of the older generation. Such experiences can cause us to stop and do some serious reassessment. We may be asking ourselves questions like, “Ten years from now, what will I wish I had done differently?” “What are the most important relationships in my life, and am I giving them enough time and nurture?” “How do I want to be remembered?” “What are the priorities that matter most to me?”

It’s a good exercise to periodically allow ourselves time to think about questions like these. But what may be even more important is how we respond to them. Instead of resorting to a midlife crisis, a more constructive response might be setting goals based on our answers, and taking some concrete steps to achieve those goals.

Almost inevitably, some of our most important goals in life have financial implications; they come with some kind of financial price tag. As financial planners, our job is to help our clients determine those price tags and then formulate a plan that allows for accomplishment. When you know where you want to go and—maybe more important—why you want to go there, it’s our job to help you map out a financial route that will take you to your intended destination.

Of course, the destination can be different for each individual. If you happen to be an empty-nester in the final years before retirement, a comfortable, independent lifestyle may be the number-one goal. That goal, in turn, probably entails maximizing contributions to retirement accounts over the next several years, anticipating future tax liabilities, and paying down as much debt as possible in anticipation of stretching retirement income as far as possible. On the other hand, some are still balancing the needs of children’s education or support for aging parents, and it might make more sense to plan on working a few extra years and allocating more of current earnings to those support needs. There are others who may prefer a hybrid retirement lifestyle: working part-time to maintain adequate income while also drawing on Social Security, pensions, and investment income. And then there are those for whom the word “retirement” is not even under discussion—at least, in the traditional sense. That doesn’t mean they intend to keep sticking to a nine-to-five schedule, but many aging persons—especially the self-employed—derive great satisfaction from staying involved at work, even if on a more limited basis. Your general health is another important consideration, since it directly impacts your ability to continue working part-time or even the types of retirement activities you can look forward to. Not only that, but your health now can be an important predictor of whether you’ll need long-term care at some point, which is another factor that creates the need for advance planning.

So, whatever shape your “next act” takes, you can probably benefit yourself by acquiring some planning assistance from a professional, fiduciary financial advisor. Your advisor can help you get a clear picture of the resources you’ll have available and how those resources match up with the goals you’ve set for yourself.

At Aspen Wealth Management, we work with clients to develop plans and strategies that are driven by each client’s unique needs, goals, and priorities. To learn more, visit our website to read our article, “Gratitude and Retirement: How the ‘Practice’ of Being Thankful Can Improve Your ‘Second Act.’”