Setting Sail into Retirement: 4 Lessons from @Sailing_With_Phoenix for Your Golden Years
Setting Sail into Retirement: 4 Lessons from @Sailing_With_Phoenix
From Sailing_With_Phoenix Insta
If you’ve been scrolling Instagram lately, you’ve likely come across the incredible journey of @Sailing_With_Phoenix – the inspiring individual who quit their job, emptied their 401k, bought a sailboat, and set off to cross the Pacific Ocean to Hawaii, with their cat, Phoenix, by their side. It’s a tale of audacious dreams, overcoming challenges, and embracing the unknown. He just made it to Oahu last week.
While most retirees won’t be navigating the open seas in a sailboat, the spirit of @Sailing_With_Phoenix’s adventure holds profound lessons for anyone embarking on their golden years. And while most financial planners get more than a little tense when they hear the phrase “emptied their 401k”, there are valuable lessons retirees can take from his trip.
Here are four key takeaways retirees can glean from this epic voyage:
1. Embrace the “Just Do It” Mentality: Don’t Wait for Perfect Conditions
One of the most striking aspects of @Sailing_With_Phoenix’s story is its sheer audacity. They didn’t have years of sailing experience, a massive savings account, or a perfectly polished plan. They learned as they went, renovated their boat, and simply went for it.
For retirees, this translates to: Don’t let the fear of imperfection or the need for a “perfect” plan hold you back. Have you always dreamed of traveling, learning a new skill, volunteering, or starting a small business? The time is now. Retirement offers the gift of time and flexibility. Instead of meticulously planning every detail for years, take that first step. Sign up for that class, book that initial trip, or simply start researching. The journey itself will often reveal the next steps, just as @Sailing_With_Phoenix discovered the nuances of sailing by being out on the water.
“Don’t let the perfect be the enemy of the good” should not be an excuse to do something reckless, but if you wait for everything to be perfect, the opportunity may have passed. For @Sailing_With_Phoenix, if he had waited any longer, he may have been too old or started a family, where the risk and downside were just too great.
“Don’t let the perfect be the enemy of the good.”
For retirees, your best time for a ROM, return on memories, is in your 60s and 70s. If you do live to 90, you probably won’t have the health to live your best life in your 80s or beyond. Cutting back on spending at 85 may come naturally, or at the very least, not be a hardship.
2. Resilience is Your North Star: Navigate the Unexpected & a Resilient Retirement Withdrawal Strategy
The ocean, much like life, is unpredictable. @Sailing_With_Phoenix’s videos aren’t just sun-drenched horizons; they also show the realities of seasickness, mechanical issues, and the sheer mental fortitude required to be alone on the vast Pacific. They face challenges head-on, learn from them, and keep moving forward.
Retirement, while often anticipated as a time of ease, will inevitably present its own set of unexpected challenges. Health issues, family changes, financial shifts – these are all part of life’s journey. The lesson from @Sailing_With_Phoenix is to cultivate resilience. When faced with a setback, don’t let it capsize your plans. Instead, adapt, problem-solve, and find new solutions. Embrace the idea that sometimes the most valuable lessons are learned when you’re out of your comfort zone, pushing through difficult moments. Not mentally, emotionally, socially, and physically challenging yourself was fine when we only spent 10-15 years in retirement, but much like muscles in space, we need to be resistant to not decay as we progress into retirement.
Taking care of your health from an early age greatly adds to your resilience. It is tough to enjoy your best life with the grandkids if you can’t move around. It is also difficult to make good decisions if you are jumping from one health crisis to another. Not to mention, spending on healthcare takes money away from other goals and increases risk later in retirement.
While my main point is more about trying new things, learning, and growing as a person is a necessity in our longer retirements, having a financial plan allows for this, too. Knowing what possible outcomes might look like and what risks are out there allows you to weather the bad times and make the most of the good. A plan does not make everything perfect, but it does give you the confidence and make better decisions, which is resilience.
A Resilient Withdrawal Strategy
With financial plans, we are guessing at equity returns, bond market returns, and inflation. We are trying to come up with the right probability of success given all the goals, including goals like @Sailng_With_Phoenix had. One way to do this is with what is called the Gaurdrails withdrawal strategy. This strategy produces income based on portfolio performance, meaning that when the portfolio returns are high, we take out more income, and when it is low, we take out less. This dynamic strategy allows for higher initial withdrawal rates while keeping the probability of not running out of money and meeting goals the same. The Guardrails strategy makes your portfolio more resilient while allowing you to spend more at the right time.
The Guardrails strategy makes your portfolio more resilient while allowing you to spend more at the right time.
3. Redefine “Success,” Retirement, and Savor the Simple Joys
@Sailing_With_Phoenix isn’t sailing for fame or fortune, but for freedom and the experience of it all. Their “success” isn’t measured by traditional metrics, but by the beauty of a sunset, the companionship of their cat (or dog), and the profound sense of accomplishment in chasing a dream.
For many, retirement is a great opportunity to redefine what success means to you. It’s not about how much money you have or how many things you own. For many retirees, the goal is not to retire with the largest IRA, but to balance longevity risk, meet goals, and live their best life.
Your best life could also be working comfortably in retirement. When we are balancing all these risks, working part-time or doing something you like or love, could be your best life. Just like the traditional corporate job was not for @Sailing_With_Phoenix, the traditional do-nothing retirement may not be right for you.
It’s about how you spend your days, the relationships you nurture, and the fulfillment you find in pursuits that truly matter. Like @Sailing_With_Phoenix, find joy in the small victories, the unexpected moments of beauty, and the profound satisfaction of living authentically. Whether it’s tending a garden, spending time with loved ones, or simply enjoying a quiet morning, these are the true treasures of retirement.
For many, retirement is a great opportunity to redefine what success means to you.
4. Consider Your Companion: The Unique Joys (and Practicalities) of a Dog on Deck
While the bond between @Sailing_With_Phoenix and their feline first mate, Phoenix, is cute and a testament to their unique connection, it also brings up a fascinating point for prospective retirees: the type of companion you choose for your adventure can profoundly shape the experience.
For those contemplating a more active retirement, a dog might offer a different set of benefits compared to a cat. While Phoenix the cat brings quiet companionship and the comfort of a familiar presence, dogs often thrive on shared exploration. A canine companion can be more easily leash-trained for walks on new shores, eager to explore new trails and beaches with you when you anchor in a new port. Their boundless energy and desire for active participation can encourage you to be more active yourself, leading to new discoveries and opportunities for socializing with other pet owners. I have never met anyone who made a social connection while walking their cat.
The emotional support and interactive play a dog offers can also be a significant boost to morale during long stretches or challenging moments. Ultimately, the choice of your furry co-pilot should align with the active or quiet lifestyle you envision for your golden years, ensuring your companion enhances, rather than limits, your shared adventures.
For those contemplating a nomadic or highly active retirement, a dog might offer a different set of benefits compared to a cat.
@Sailing_With_Phoenix reminds us that life is an adventure, and it’s never too late to chart a new course. So, as you look ahead to your retirement, ask yourself: What’s your Hawaii? And what’s stopping you from setting sail? Taking on risk at 60 is far different than taking on risk at 30, with no family or obligations, other than a cat, but that doesn’t mean you shouldn’t look at possibilities. It is why financial planning can be so powerful. It isn’t about being as frugal as possible; it’s about making the best informed decisions so that you can try to maximize your ROM and still meet your retirement goals.
If you don’t have a plan and would like to get one or to learn more about Gaurdrails, schedule a Discovery Meeting:
This commentary is provided for general information purposes only, should not be construed as investment, tax, or legal advice, and does not constitute an attorney/client relationship. Past performance of any market results is no assurance of future performance. The information contained herein has been obtained from sources deemed reliable, but is not guaranteed.
