A piece of advice for those preparing for retirement: Get rid of stuff. Now. And, don’t buy any new stuff “that you’ll want in retirement.”
I know of what I speak. I just sent yet another yearly rent check for our three 10x20 storage units, but I can’t remember half of what’s in them. And, half of what’s in our closets should be in them, too. Or, in the landfill.
I somewhat expected this challenge. After all, we’re of the era of “save everything.” You spent good money on it. It served you well. Someday you might need it again. It’s still perfectly good, or it can be easily fixed; just needs a couple of parts.
And, not only do we save stuff, we save it in the box it came in. Tied with a string. Protects it, you know. And, makes it easier to find (and to stack).
Our kids don’t save anything. They even throw away those plastic boxes that CD’s come in. And, after they load the CD onto their laptop, they throw it away! Of course, they never even consider trying to fix anything; if it breaks, they toss it. We’ve become a disposable society, plain and simple. So, get on the train, pre-retiree. Dispose of all that stuff you haven’t touched in years (except to move it around).
And, then there’s the issue of buying things “that you’ll want in retirement.” No, you won’t. Here, too, I know of what I speak.
The casual clothes you’ve been accumulating at end-of-season sales – not only will they be hideously dated, they are likely to be made of material that isn’t produced anymore because there is something better. And, they won’t fit.
The cordless power tools you just laid in – they’ll be available with more power, and be lighter and cheaper. The Nikon you bought a few years back with all those lenses – well, people don’t use film anymore. Try to unload it on eBay. The big screen TV, the stereo, the cordless phone – think flat-screen monitor, surround sound and iPhone, all wireless, of course. Besides, wait a couple of years and they’ll be even better, cheaper and simpler to operate.
The culprit here is technological change. It’s not going to stop. In fact, it’s accelerating. We all know that. But, we haven’t all adjusted to it. We need to shift gears from being accumulators to being user/recyclers.
One hint: You might get a little comfort if you think about the concept of recycling. It’s just like keeping/saving. But, it’s kept/saved somewhere else. Next time you need it (if ever), you’ll have to pay for it again, but it will be cheaper and even better than it was. And probably disposable. That’s progress! Isn’t it?
Larry Halverson: I've Been Thinking
Larry Halverson, CFA, Managing Director of MEMBERS Capital Advisors, Inc., is a veteran of more than 35 years in the financial services industry. Links: SUBSCRIBE TO: I've Been Thinking |
Monday, July 9, 2007
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