John S. Grande, CFP

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Would you ever consider entering into a complex surgery procedure with a patient without first doing every test and possible scenario before entering the operating room? Why should one approach finances any differently?

There are three senior partners in our practice, and we have all been working with ophthalmologists for more than 25 years. I don’t dare do those years in the aggregate!

Plus, we’ve attended well over 100 ophthalmology conferences around the country and on the islands and have sat down with many hundreds of ophthalmologists to listen to their concerns and questions.

We have eye-doctor clients across the country and have worked with some of them throughout the entire 25 plus-years.

This article is an attempt to share with you the insights we have gained about their personal and financial lives. Their financial aspirations, failures, and fears.

First, it has been beyond a privilege to have spent most of our profession in the most intimate relationships with this group of men and women, who are the crÃ¨me de la crÃ¨me of the medical profession. What an honor and a challenge it is to deal daily with what must be the kindest and most intelligent of any group in medicine.

For us, it started with having as clients some of the brightest and most shining stars in ophthalmology.
	A. Edward Maumenee, MD, Ron Michaels, MD and Ron Smith, MD, to name just a few. Talk about gentlemen and intellects. The medical profession lost these doctors far too early. The one word that comes up for these three incredible men is kindness. Besides their scientific brilliance and love of ophthalmology they were giants when it came to being human beings. They were our close and cherished friends and we learned so much from them about life. So many stories we could share. Such selflessness always emanating from them. We were then, and still are, in awe of these gentlemen.

And as it started, so it continues, working closely with the upper echelon of humanity. Working closely with so many men and women who are seemingly all blessed with multiple talents in life. No doubt, being so humbled by these professionals has been a gift in many ways. We always knew we were going to be asked sophisticated questions. Still, underneath this intellect and goodness lie the normal emotions of any human being.

No two doctors are alike, but there are definitely commonalities to be found among them and their immediate families. Families we are so proud to call our friends.

We have observed, through the questions put to us, that most ophthalmologists think that their peers have more money than they do. It’s almost never true. Many have been great savers, good investors and prudent spenders, and it is rather remarkable, taking away the outliers in either direction, the similarity of accumulated wealth between them.

Those outliers usually come about from one or more of these factors:

the negative financial impact of divorce(s);

when both spouses are physicians, obviously income is augmented;

how many children have to be educated since most doctors don’t qualify for any assistance;

attempting to invest in a “sure thing” that promises astronomical returns with little risk and then losing a large portion of their investments (high intelligence doesn’t override efficient markets);

greed/fear, both equally having no place in investing.

The above items contribute the most for the discrepancy in rare cases between a doctor’s net worth when compared with his or her peer group.

As for aspirations, almost everyone wants financial security for the future. Educate their children. A nice home. A second home. Vacations, a secure retirement, etc.

Given the high income for most ophthalmologists, there is a choice one is faced with after having handled income taxes and living expenses; what to do with discretionary income? Most doctors are maxing out their 401(k)s, 403(b)s, profit-sharing plans, etc., and this is paramount, but what do they do with what is left over?

Some people are just born savers and others are born spenders. Herein lies the biggest factor between doctors’ net-worth statements.

As for fears. That’s an easy one. It’s always the same question. Will I run out of money in retirement? After receiving a pay-check for 30 plus years and suddenly this dependable income stops, this question would surely arise.

Along with this question come so many others. How long must I work? How much will I need to spend in retirement? Should I (we) take social security right away or wait? How much should I keep in the stock market? Are annuities a good or a bad idea to use? What if the market collapses right before or after I retire? What if one of us goes to a nursing home, how will that impact us?

We hear these concerns every time we listen to a doctor who is meeting with us for the first time or sitting down with them at a conference.

So, here we have it. A group of extraordinary professionals and humans, with the same hopes, emotions, and fears as everyone else.

Unfortunately, what we generally observe are people with some level of anxiety over the unknown. That’s normal. This is human nature. But it is a form of suffering, and probably not great for one’s health. We have spent our careers attempting to show people how to reduce these fears and it’s basically pretty simple.

Construct a realistic investment/financial plan, showing short, intermediate, and long-term goals. Invest a little of your time with the guidance of a professional developing a plan that leaves you strongly grounded in financial reality.

Not hoping, fearing, guessing, reacting, but having a thoroughly thought-out plan of action that you follow. Monitor, adjust, and review as circumstances change both in your life, and in the world.

With this in place, you can get on with life knowing that at least your finances are in order.

Would you ever consider entering into a complex surgery procedure with a patient without first doing every test and possible scenario before entering the operating room? We don’t think so. Why should you approach your finances any differently?

You spend your professional lives dedicated to caring for others, making a positive difference in society. You are all a credit to the medical profession. We wish you the happy, healthy lives you so deserve.

Is there a correlation between happiness and wealth? Our experience from observation is “no,” a topic for another day. But, is it not easier to be light and happy when you aren’t stressed out about money?

So, our advice is to have a plan in place that gives you freedom from anxiety.

“Let the good times roll.” Stay safe and remember this, too, shall pass.

John J. Grande, CFP, Traudy F. Grande, CFP, and John S. Grande, CFP, are co-editors of the 

. They are owners and principals of Grande Financial Services Inc., Oakhurst, NJ, (

). The Grandes advise doctors across the country on a diverse range of investment and financial matters. Readers may submit their financial questions to them at 

The views depicted in this material are for information purposes only and should not be considered specific advice or recommendations for any individual. All investing involves risk, including the potential for loss. Past performance is not indicative of future results. No investment strategy can ensure a profit or protect against loss in a declining market.

John J. Grande, John S. Grande and Traudy Grande are Registered Representatives offering securities through Cetera Advisor Networks LLC, Member FINRA/SIPC. Advisory services offered through Summit Financial Group, Inc., a registered investment adviser. Summit and Cetera are related and are under separate ownership from any other named entity. Registered Branch: 257 Monmouth Rd, Oakhurst, NJ 07755. Phone: 732/531-4111; toll-free: 800/722-1258. Website: 

Articles

What we've learned from the commonalities of financial aspirations, fears

It was April 8, 2020 at our home. It started with a severe headache. Then the sore throat came. Then I noticed I was unusually out of breath. In fact, if I walked up several stairs, very slowly, I had to sit in a chair to recover. Then my right lung had a pain that was nearly unbearable, which was followed by a fever. My G.I. system was completely off, and I now had a constant dry cough.

Why am I telling you this in what is supposed to be a practice management, financial column in a medical journal?

Please hold on for a minute, and you will see the amazing correlation between my frightening experience and your finances.

I’m over 70, and 12 years ago underwent open-heart surgery. These two factors put me in a high-risk category for not surviving COVID-19. I had been self-quarantined, for two weeks, before these symptoms began, so I was surprised, to say the least, that I was experiencing what seemed like the exact symptoms that were being talked about on TV every day.

I kept waiting to feel better the next morning, then the next morning came, and I would feel worse. At night I would lie in bed and look out our bedroom window, over the water to the bridge about half a mile down river, and watch the flashing lights on the ambulances as they went back and forth to the hospitals around us.

We live in NJ and it is one of the hot spots of the world for the virus. I can’t say I was in any kind of terror, but my mind pictured me being dropped off by my wife at the tents that are set up outside our emergency rooms and being wheeled into the infected hospital by people whose expressions I would not be able to see because of their masks. I even imagined being on a ventilator and quickly erased that thought. It was two nights in a row that I awoke around 2 a.m. with severe pains in both lungs when attempting to breath, and waking my wife, Traudy, suggesting we should go to the hospital.

I had a virtual conference with my wonderful GP and he looked exhausted and emotionally spent. He said he was losing many patients and his trips to the nursing homes were scaring him. He was feeling frustrated and helpless.

I asked if I should be tested, and he said that even if I came up positive, until I displayed very serious symptoms, e.g., blue lips, being incoherent, that there was nothing he could do. He felt I didn’t have the virus because I was able to talk to him without coughing between every sentence. I found myself trying to lift his spirits, as I had never seen him look so grim before. Give that man an award for bravery, please!

I’m happy to tell you that several days ago I turned the corner. I am not all better, after being sick for three weeks. Still feel like a Mac truck ran over me. My lungs are still a little sore, and I am tired, but I can feel the daily improvement. The fever, sore throat, and headaches are gone. Breathing is getting better. I don’t know if I had the COVID-19 or not. But, in all my years, I’ve never experienced these symptoms before.

So, where is the correlation I referred to before between my experience with this and finance?

I will tell you. I have always prepared for a health crisis. I walk daily, I eat properly, I lift weights, and I even run. I take any supplements that I feel will improve my immune system. In fact, on a good day, my wife and I will walk over 20,000 steps. (I’ve averaged under 200 steps a day the last two weeks.) When I fell ill these few weeks ago, it would have been too late to prepare for it. If I had not been strong and healthy, I may have gone to the hospital not to return.

It is the same thing with your finances. At a time of crisis, it is already too late to prepare for it. This must be done ahead of time.

Before I suggest how you might do this, let me first give you a few strategies to consider for right now since we are still in the middle of this severe contraction.

You could consider looking at your traditional IRAs and think about converting to a ROTH IRA when; a) your income may be lower, b) the IRA isn’t as large now as it was before the downturn.

Look at your losses outside of your qualified plans and talk to a tax advisor about tax-harvesting. Moving from one investment to another for at least 31 days to avoid the “wash-sale” move, and remaining fully invested in case the markets move up quickly. These losses can be carried forward indefinitely into the future to put money in your pocket.

If you have excess cash, consider slowly entering further into the market again as there are many quality stocks on sale these days that most likely will rebound in the future. But, never be more invested in equities than your plan dictates. Remember, “all boats float lower in an outgoing tide.”

See if interest rates would be lower if you refinanced your mortgages.

Rebalance your portfolio to bring it back to where it should be. This means shifting some of the funds from your fixed income over to equities, e.g., an originally 60% equity/40% fixed income portfolio could now be 50% equity/50% fixed income.

Getting back to how you should plan before such a “black swan” event occurs. It’s actually simple. Know where you are financially, where you want to go, have a plan that has the highest probability of success with taking no more risk than necessary to achieve your financial goals, and monitor it.

Then, stick to your plan. I’ll be honest with you; our clients have not been calling us, although we have been calling to check up on them. They have confidence that if they just stay the course they will be okay.

This experience, as most unpleasant experiences have been, has been a great teacher for me. One lesson I was reminded of: don’t panic.

This is no different than with the stock market; you can be concerned, you can figure out strategies, but panic will generally guarantee the wrong move. I’ve seen it, and I know it exists. I have learned that being prepared, protecting myself physically by being as fit as I can be, acts as an insulator against the unknown.

It is the same with investing. Adding some protection to your portfolio, even if it means leaving a small percentage of profits on the table, is prudent.

Greed, as is fear, are two emotions that will sabotage your financial security. I learned that planning ahead is always smart.

Back in January we had already ordered and delivered to our home, masks, hand sanitizers, water, food, and ways to get food without having to leave our home. We shared our stash with our family. Same with financial planning. Plan ahead of time for the unknown. Don’t be afraid to add guarantees to your portfolio.

In closing, this experience reinforced just how much I love life and living it fully. This includes my family, clients, friends, our travel, and the freedoms I took for granted. I find myself emotional when I speak to my kids on Zoom, as the love I feel for them is almost uncontrollable.

I never thought I’d actually have appreciation for breathing, but even that is a gift these last few days. Please be safe out there.

We will all get through this in time, be back to where we were several months ago before all of this horror unfolded around the world, and will be much wiser for it. We will be stronger for it. We will have learned from it.

We will all be more appreciative of every person in our lives and for every moment when all is well.

“This too shall pass,” but what a gift in retrospect. What a gift going forward.

John J., Traudy, and John S., and Grande, CFPs, are co-editors of the "Money Matters" column in 

 They are owners and principals of Grande Financial Services Inc., Oakhurst, NJ (

). The Grandes advise doctors across the country on a diverse range of investment and financial matters. Readers may submit their financial questions to them at john.s.grande@grandefs.com or call 800/722-1258.

John J. Grande, Traudy F. Grande, and John S. Grande are Registered Representatives offering securities through Cetera Advisor Networks LLC, Member FINRA/SIPC. Advisory services offered through Summit Financial Group, Inc., a registered investment adviser. Summit and Cetera are related and are under separate ownership from any other named entity. Registered Branch: 257 Monmouth Rd, Oakhurst, NJ 07755. Phone: 732/531-4111; toll-free: 800/722-1258. Website: 

Breathing through COVID-19: First-hand account in protecting one’s health, finances

This crisis will pass, but so will the gift of it to waking-up to live the rest of your lives in gratitude and appreciation for each breath you take.

Unexpectedly-suddenly-there may come like a thief in the night, a seemingly, overwhelming and insurmountable crisis that threatens our very existence.

However, if examined carefully, this crisis can actually be a doorway to peace. At the time of writing this article-and I highly doubt things have changed before publication-our world as we have known it has been turned upside down, and what security we thought we once had, we are suddenly aware was only an illusion.

In a matter of weeks, our financial security, our businesses, our way of life, our world as we knew it, and even our very lives have become threatened.
	
	My profession over the past several decades, blessedly, has been to council ophthalmologists around the country in planning for a successful financial life, and a carefree retirement.

My partners and I continue to work with doctors in all phases of their lives, from accumulating assets to withdrawing assets in retirement. Our job was always to plan carefully and prudently to achieve their goals with minimum risk. But, and perhaps because of the very nature of our business, we noticed that there was never a correlation between how much money a person had and how happy they were. This mystery compelled me to search out why this occurred.
	
	So, this article is about our current crisis and happiness, or freedom from the terror of one’s own punishing thoughts.
	
	I have seen it all, or at least I thought I had. But this current financial/health outlier-black swan event is one in which no one can give early predictions as to the impact on our world or domestic economies, or the very survival of our healthcare system. Our family’s and our very own mortality are actually called into question. From nowhere we are now faced with unprecedented challenges. And in many cases overwhelming fear of the unknown.
	
	First, on the financial side, if you are in the accumulation phase of your career, nothing has changed. Unless this is the end of our financial systems as we have always known them, and that is highly unlikely, the companies you have invested in and loved are now at fire-sale prices, provided you are going to hold them long-term. Just keep saving and investing as you have been.
	
	Uncertainty is the last thing Wall Street wants to see. Uncertainty is the last thing any of us wants to see, especially when it comes to our health or financial security. We have, as a team at Grande Financial Services, witnessed more than three decades of ups and downs in the market, and just about every geo-political event imaginable.
	
	This most recent downturn, as severe as it has been, is something that we have not seen before. It is disconcerting, to say the least, to watch your investment holdings lose up to 30% of their value in one week.

However, and yes there is a however, even though we have not seen exactly this particular rapid spiral into a bear market, and a possible recession, we know how it has turned out in the past, which has always been to come back and advance further. This should be no different as the banks are strong and the government is giving its full accommodation to both the virus and the financial markets.
	
	I have witnessed firsthand over the years that fear is the most dangerous emotion when it comes to investing. The feeling of watching your portfolio grow each year is pleasant and rewarding, but does not match the intensity and pain of watching your investments lose value. Presuming that you had a good financial plan laid out, and your exposure to stocks was not more than the absolute minimum risk you had to assume to achieve your financial goals, just stay the course.

You must remember that your stock portfolio represents a long-term strategy, and that you are not to panic and sell out because of fear. Selling out after a large decline in the markets is turning a paper loss into a real loss.

Then comes the problem of getting back before the markets turn upward, possibly as fast as they went down. This is the age of computer trading and things happen very fast, as we have just experienced. This particular downturn may well be the fastest and most severe to date. It gave few investors a chance to trim down their holdings as the markets were down considerably in just one week’s time.
	
	For those ready to retire or in retirement now, it may be a good time to divide your expenses between essential and discretionary. Essentials must be paid, e.g. food, mortgages, property taxes, insurances, gas and electric, cars, etc. The discretionary side would be anything not essential, such as eating out, gifts, travel, etc. When you calculate what the essential and discretionary costs are, you can divide each number by your investment net-worth, find what the percentage is, and stick to a budget that does not exceed this percentage.

As your portfolio goes down or up and, if the percentage is higher than planned, you may want to cut back on your discretionary spending until the portfolio has recovered again. This will preserve principal and the danger of creating a vicious cycle of depleting your savings when your withdrawal percentage keeps increasing as the portfolio goes down. There are many more strategies to be considered, which will be covered in future articles.

Some examples would be tax-harvesting losses by switching positions on the same day. Thereby, not missing a market upturn if one would occur, but locking in future loss carry-forwards. Also, repositioning portfolios that previously had too much gain to consider a move because of capital gains. There are actually many positive moves one could consider while we are experiencing these depressed markets. Of course, it is imperative that you consult with a tax professional before making these changes.

There is not enough space in this article to fully address the opportunity that presents itself for all of us, but I will give it a try. This shock to our daily lives, in my opinion, is a wake-up call.

It is a time to re-evaluate the reality of the mechanical lives most of us have been guilty of living. We plan and do and do so much every day that most of us miss being in the sacred moments of being alive. Please excuse me for philosophizing, but the moment seems to call for it. I have watched it my whole career.

Professionals on a treadmill, always looking into the future for when things will really be good, trying to turn ”what is” into “what should be”-thereby missing what joy is right in front of them. It is time to come down from our cluttered minds into our hearts and remember the innocence of our childhood. We are more than our money, our professional achievements, our pride. If we look deeper, and this terrible crisis is a perfect opportunity to do so, you will find a peace within you.

Instead of trying to control the future, which we now see we cannot, we can become more grounded in the preciousness of each moment. Just take a look at the fragility of life and what we thought was our security. What have we been missing in an attempt to achieve this illusion?

I am not saying not to plan. I am saying to be fully alive while planning. Remember the love we are as human beings. Remember the kindness and compassion that we innately are. There is no such thing as security no matter how much planning we do. There is only now. I urge you, my friends of many decades, to embrace this opportunity to re-evaluate your priorities.

Yes, I said, "opportunity." Don’t miss it! This crisis will pass, but so will the gift of it to waking-up to live the rest of your lives in gratitude and appreciation for each breath you take.

Perhaps this sounds like strange advice from a wealth counselor, but I have always loved my profession and my clients and only want them to be whole in life. Integrating their knowledge, intelligence and success without needless suffering. I believe this is a wake-up call. May everyone stay safe.

John J., John S., and Traudy F. Grande, CFPs, are co-editors of the "Money Matters" column in 

. They are owners and principals of Grande Financial Services Inc., Oakhurst, NJ (

John J. Grande, John S. Grande, and Traudy Grande are Registered Representatives offering securities through Cetera Advisor Networks LLC, Member FINRA/SIPC. Advisory services offered through Summit Financial Group, Inc., a registered investment adviser. Summit and Cetera are related and are under separate ownership from any other named entity. Registered Branch: 257 Monmouth Rd, Oakhurst, NJ 07755. Phone: 800/722-1258. Website: 

COVID-19 ‘wake-up’ call: Unexpected advice for happiness from a wealth counselor

You can enter retirement feeling confident by following the retirement cash flow steps above.

You have put years of hard work into your medical school and training, given most of your life to caring for your patients, and may now find yourself contemplating, or already in, retirement.

Transitioning from earning income to relying on your investments and other possible income sources to meet your income needs can be one of the most stressful aspects of retirement.

Below are 10 steps that may assist you in gaining a level of confidence and clarity around cash flow planning in retirement:

Know what your expenses will be in retirement. 

If you do not have a clear picture of what your monthly spending will be in retirement it is difficult to know if you have the assets and income sources to meet them. We utilize a detailed retirement expense worksheet with our clients, but you can also use an excel spreadsheet or the old yellow pad to list all of your expenses

Divide your expenses into essential expenses and non-essential expenses. 

Essential expenses would include property taxes, food, health care, utilities, etc. The non-essential expenses would include travel, hobbies, gifting, entertainment. 

 Social security, rental income, and withdrawals from retirement accounts all create taxable income that will need to be addressed.

This is to account for the increased cost of goods and services so you are not surprised by the additional income needs in the future.

List all guaranteed income sources during retirement. 

One way to reduce the potential anxiety caused by retirement cash flow is to have a high percentage of your essential expenses covered by guaranteed income sources. By having a level of predictable monthly income not tied to your investment portfolio you can ride out possible market volatility and periods of lower returns by decreasing the amount needed from your investments. Social Security, rental income, annuity income, and part-time earned income are all reliable and predictable sources of income that can be used to cover a portion of your retirement expenses.

. The income gap is the difference between your total expenses, including taxes, and your guaranteed income sources.

Once you know the amount you will need to create after guaranteed income sources you can calculate your withdrawal rate. The exact withdrawal percentage that is recommended varies but, ideally, we like to see a withdrawal rate no greater than 4%.

Create a monthly withdrawal strategy from the portfolio. 

Once the amount is determined you can structure monthly withdrawals using dividends, interest payments, and if applicable guaranteed annuity payments.

Make sure to withhold adequate taxes from the retirement accounts. 

For some income sources, like social security and retirement account withdrawals, you could determine a percentage that will be directed to the IRS and/or state to cover taxes. For other sources of income, you will want to make estimated payments to make sure you are not surprised by a large tax liability at tax time.

Have all income sources deposited into a designated account. 

Most of our clients have their social security and portfolio withdrawals directly deposited into an account that is used to pay bills and cover expenses. This gives the feel of still receiving a paycheck and helps to smoothly transition from earned income to retirement income.

Dr. and Mrs. Smith are about to retire and are planning their retirement cash flow strategy. Below are the 10 steps that were utilized to transition into retirement

1. Dr. and Mrs. Smith used a retirement expense sheet to list their overall expenses in retirement and determined what they would need to cover all of their needs and wants.

2. Next, they divided their expenses into essential and non-essential.

4. An inflation factor was used to plan for the future increase of goods and services.

5. Once they determined their gross and net income needs, they listed all of their guaranteed income sources:

Dr. Smith’s Annual Social Security:    $40,140

Mrs. Smith’s Annual Social Security: $24,000

Annual Surgical Center Income:         $30,000

6. With the expenses and taxes listed, along with the income sources, the income gap could be calculated for the Smiths.

Total Expenses:                                  $200,000

Guaranteed Income Sources:              $94,140

Total Income Gap =                             $105,860


Essential Expenses:                               $110,000

Guaranteed Income Sources:                $94,140

Essential Expense Income Gap =        $15,860

7. With the income gap calculated the Smiths reviewed their investment portfolio and calculated the withdrawal rate.

Total Income Gap:                   $105,860

Withdrawal Rate:                   $105,860/$4,250,000 = 2.49%

8. The Smiths would then work with their financial advisor to determine a strategy to withdraw the 2.49% utilizing dividends, interest payments, and if applicable annuity payments.

9. Once the specific dollar amounts are determined for the various investment accounts the Smiths would instruct their advisor to withhold federal and state tax on any accounts that would produce ordinary income, retirement accounts and annuities.

10. The last step for the Smiths to put their retirement cash flow plan in motion would be to choose a bank or brokerage account to have all of their guaranteed income sources and portfolio withdrawals deposited into so they can concentrate on enjoying retirement and not how they will pay for their monthly expenses.

Like the Smiths you can enter retirement feeling confident by following the retirement cash flow steps above.

This case study is for illustrative purposes only. Individual cases will vary. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Prior to making any investment decision, you should consult with your financial advisor about your individual situation.

Investment advisory services offered through Raymond James Financial Services Advisors, Inc. Grande Financial Services, Inc. is not a registered broker/dealer and is independent of Raymond James Financial Services. © 2022 Securities offered through Raymond James Financial Services, Inc., member FINRA / SIPC | Legal Disclosures | Privacy, Security & Account Protection | Terms of Use Raymond James financial advisors may only conduct business with residents of the states and/or jurisdictions for which they are properly registered. Therefore, a response to a request for information may be delayed. Please note that not all of the investments and services mentioned are available in every state. Investors outside of the United States are subject to securities and tax regulations within their applicable jurisdictions that are not addressed on this site. Contact your local Raymond James office for information and availability. Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website's users and/or members.

Any opinions are those of John S. Grande and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Past performance does not guarantee future results. Future investment performance cannot be guaranteed, investment yields will fluctuate with market conditions.

You should discuss any tax or legal matters with the appropriate professional.

One of the most stressful aspects of retirement can be transitioning from earning income to relying upon investments and other possible income sources to meet income needs.

Ten steps for planning your retirement cash flow

Being prepared for both the financial and emotional challenges that can await you in retirement will help assure that this last one-third of your life will be spent as the most rewarding.

It was Socrates who said, “An unexamined life is not worth living.” Might it also be true that an unexamined retirement is not worth living as well?

Please don’t take this to mean retirement isn’t worth living.

What we are looking at is the need for this major event to be objectively examined. We have all been disappointed at one time or another with an experience only to realize it didn’t live up to our concept of what we expected. The unfulfilled expectations were caused by an unrealistic concept.

Perhaps the immensity of what retirement signifies is so monumental, that it is too overwhelming for our brains to logically contemplate. Consider, after you have studied to qualify for your specialty for one-third of your life and, were successful at your profession for another third of your life, suddenly everything will stop as you have always known it.

The question arises: “What will I do with the last third of my life?”

The very identity of who you are, in large part, is an ophthalmologist—an active, meaningful, medical professional. You are an experienced and respected doctor taking care of others and living on a schedule that is jammed from morning to night. People all around you depend on you. You are needed and important and up to big things. In fact, you are continually studying and learning about new procedures. If you aren’t a practicing physician any longer, then who will you be? Will how you relate to others and how they relate to you be altered?

Retirement reminds us of a roller-coaster ride that pulls across the finish line and suddenly stops and you climb out. This is some contrast.

In our industry we love numbers so, let’s look at some. There are 10,080 minutes in a week. If you are blessed, you get to sleep for 3,360 of these minutes, hopefully uninterrupted. This will leave us in retirement, 6,720 minutes, or more manageable, 112 hours a week to fill. Conceptually, you think that you may be playing golf (3 x/week for 15 hours), boating (5 hours), walking every day (14 hours), playing bridge (3 hours), seeing the grandkids (10 hours), and traveling (max 2 months). Not counting the vacations, this still leaves 65 hours a week. Remember, the office and surgery keep you busy about 60 hours a week, but this is 65 hours a week you have to fill with no practice to go to.

John J., John S. and Traudy Grande, CFP®’s, are co-editors of the 

In other words, how will you fill all day next Monday? Then Tuesday…

Our point is that rushing into and living just for retirement may not be what a healthy individual would want to rush into if they thought about it carefully. Although we have seen ophthalmologists do it on rare occasions, it isn’t an easy endeavor to retire and then a year later, decide it was a mistake and go back to work again.

We are now hearing that today’s 70 year old is the new 50 year old. If this is so, the concept of retiring at 65 may be out the window.

Goal-based retirement planning is different from longevity planning. Holistic retirement planning takes care of the obvious needs first, that is aiming for financial independence, without which you can do nothing. However, this is incomplete as there exists a gap between the financial side and the emotional side of retiring. True retirement planning includes the physical and emotional, as well as the financial needs of retirement.

From our 25 years of observation, it appears it would be prudent for pre-retirees to think and re-think how they will fill their days.

“I’m bored,” are words we often hear from retired doctors. They actually say things like, “How many times can I play golf?”, “How many luncheons can I go to?”, “How many walks can I take up and down the beach?”, or “I don’t feel like I matter anymore.”

In fact, Joseph F. Coughlin, PhD, founder and director, MIT, AgeLab, interviewed retired CEOs in Florida. Interestingly, most retired corporate CEOs live in Naples, Florida. In these interviews, he said 60 of them reported they were unhappy in retirement.

One of Coughlin’s suggestions is to try two exercises before actually retiring:

First, ask yourself what you now do when you are not working. If you have things to do around the house, as he says we all found out during COVID-19, there are just so many times you can paint the rooms. In six months’ time, most of or all the items on your to-do list will be completed.

Second, he suggests that you go to an Airbnb and stay there for 3 weeks. See how this feels to you. We agree with him when he says it is a mistake to think of retirement as a vacation. It is not. It is life happening with lots of time on your hands.

We had one world-renowned, eye-surgeon client who privately confided to us, “retirement is getting better, I now dream of operating only 1 or 2 nights a week rather than every night.”

We aren’t trying to paint a dismal picture of retirement because we do have many retired ophthalmologists who are having the time of their lives.

We hear comments from them like, “I love having no schedule” or “It’s so great not to have those responsibilities anymore.” Many doctors are out skiing, boating, exercising, driving their RVs, and finally doing many of the things they hadn’t the time for before retirement. Some are making furniture, playing music, or creating art. Some make their investments a hobby for them, others work part-time or teach. Many have second and even third homes that they enjoy. Some have become more physically fit than they have been in 20 years. So, there are these doctors as well.

Our point is to “examine” retirement as realistically as you can. Yes, there is golf, skiing, travel, socializing, exercising, biking, boating, flying, etc. But this still leaves a life to be lived in between.

It would be remiss of us not to spend a paragraph on the financial side of retirement. Guessing is no way to plan for retirement, as hoping or guessing is the very antithesis of planning. After all, even if you choose not to retire early, it would still be reassuring to know that you could.

Our strongest recommendation is to become as solidly grounded as you can in the financial realities regarding your future retirement. You will have enough to deal with in retirement without creating the additional problem of worrying about money. Through comprehensive planning, you can get perfectly clear when you can retire without financial worry and with a high enough probability of never running out of money, while still living the lifestyle you have become accustomed to. It is critical that you discover if you are over- or under-allocated to equities or other risk investments as dictated by your specific circumstances and plan.

Our philosophy that has proven true over the decades is never take on any more risk than is absolutely required to meet your goals. If you achieve your stated objectives with a 50/50 allocation between equities and fixed-income, then why take the risk of a 70/30 allocation. Mathematically, find out if you are saving enough or too much toward retirement. Use a budget sheet to realistically calculate your retirement expenses, both essential and discretionary.

And, our advice: don’t use the antiquated rule-of-thumb that you will only need 60% of your current expenses in retirement. In our observation, this just doesn’t work. Our clients spend the same, if not more in retirement at least for the first 5 to 10 years, than before they retired.

Carefully and meticulously construct a viable plan for retirement. This plan, once developed, is your blueprint for the future. Jointly with a financial professional, monitor it throughout the years, making any adjustments that are necessary to account for changing inflation, politics, economy, health issues, and of course according to Murphy’s Law, the “Black Swan” event that you can almost depend on right at retirement. Imagine retirement in 2000, 2008, or March 2020?

Build a moat around your investments to help insulate and protect against the unforeseen. Put in place a lifetime, guaranteed recurring income stream so that you will continue to receive a monthly paycheck in your new lifelong profession. This cash flow will take pressure off of your portfolios by reducing the percentage of withdrawal. Plan for long-term care using some of the newer approaches and policies.

Our friendship with so many retired ophthalmologists has taught us that one should be more reflective about the realities of retirement before retiring. 

As you can see in this article, there are many facets to retirement and these issues deserve your attention sooner than later. You can even candidly talk with other retirees about their experience, but beware, they may not be totally honest with you. After all, if they are living the conceptual retirement “dream,” how could they possibly complain? And, talk to your spouse or partner if you have one, and see what their optimal retirement looks like.

Retirement, like anything worthwhile in life, takes planning. Being prepared for both the financial and emotional challenges that can await you in retirement will help assure that this last one-third of your life will be spent as the most rewarding. If you spent one-third of your life preparing for your profession, doesn’t it make sense to spend some reflective time and financial planning effort to plan for what should be the best years of your life?

Begin now to think about what the perfect retirement would look like to you. How will you fill your days? Be prepared!

®. They are owners and Principals of Grande Financial Services, Inc., Oakhurst, NJ www.Grandefs.com. The Grandes advise doctors across the country on a diverse range of investment and financial matters. Readers may submit their financial questions to them at john.s.grande@grandefs.com or call 800-722-1258.

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Goal-based retirement planning is different from longevity planning.

Planning for a retirement from ophthalmology: Concept vs reality

This unimaginable horror we are living through in 2020 should not be wasted. It is like a kind of tough love therapy that helps us to re-evaluate our lives.

If we had suggested three months ago these scenarios-that the entire world would be shut down, there would be no travel, millions of people would be ill and hundreds of thousands dying, people would be in lockdown in their homes in quarantine, your practices would be closed and the stock markets down to this level, and we would have no idea how long these circumstances would last or how bad they might yet become-you would have thought us insane.
	But this is what happened and continues to happen today.

So, in the face of this nightmare, is it possible to emerge from it with a sense of waking up to a new way of living?
	Actually, a new way of being? I coined an expression once, “He (she) who is happiest wins.”

But perhaps we need to redefine happiness, especially given the new world we live in. Life, as normal for most of us in the past, meant running after and reaching goals, accomplishing, accumulating, doing something to achieve an end result. Let’s face it, many of us were like puppies chasing our own tails.

For most of us our focus was on the objective world. Out there. Make more money, redo the house or get a bigger one, the next relationship, the next vacation. New this, new that. Better this, better that. More this, more that. But now we have been forced to temporarily stop the chasing. Halt the perpetual running after things or people, in order to feel fulfilled and happy.

What can we possibly learn from this pandemic that we can carry forward with us like a mega-lottery prize from having survived this horror? How do we emerge from this, thankful for what we might refer to as “waking up”? Fulfillment is never to be found outside of ourselves. This kind of fulfillment is only a limited happiness that comes and goes with intermittent suffering. This isolation/self-quarantine has forced many of us to slow down in life.

Questions we might ask ourselves in this quieter time could be “What do I want?” or  ”What do I really want in life?”

Then ask yourself, “if I get just what I want, then what does that do for me?”

After delving into this we will find that fulfillment and happiness isn’t to be found outside of ourselves. It is always present inside. And, if we take a minute to notice, we will see that there is a new sense of silence in our sheltered-in life. A silence where the chatter of the mind has been reduced and we can get more in touch with our hearts than living solely in our heads. This may sound trite, but I notice that recently in Zoom meetings with our clients, it is hard for me not to say, “I love you,” before ending the meeting.

I suddenly find a sense of fulfillment in just looking out the window at nature. At the sun colorfully reflecting on the clouds at sunset. Listening to the birds sing. There is a new sense of freedom for me in not being owned by the objective world and its things, my toys and accumulations. I cannot imagine ever walking in a park again without this new silence that represents my truer nature. Being more fully in touch and in tune with every precious moment.

I’m ready to go back into the rat race again when it opens up for business. But I will never be the same person as I was before this happened. There is a stillness now. I’m allowing myself not to think so much, or just let the thoughts slide by without effect. Not always planning the next “happiness” event.

Instead I see myself going into a world I had become accustomed to, but with eyes fully open. It reminds me of a fish that doesn’t know it’s in water until it is taken out. Or perhaps even better, a fish complaining that it is thirsty. There has been this beauty around me the whole time. I won’t hesitate to be honest about my love for those around me. We have seen firsthand and through our friends and clients the tragedy of losing someone from this dreadful virus. Not just senior citizens either. What can we learn?

How can we allow ourselves to go back into our professions and lives again and not use this experience to change us for the better? When we get right down to it, we are not our money, our possessions, our successes, our ambitions, or even our education and experiences.

The question then is: Who are we? What a wonderful opportunity we have in this “time out” world to self-inquire into who we are and what we really want and need. This may not sound like financial advice, but it actually is. I’ve noticed for decades the lack of correlation between a person’s joy in life and the size of their estate. Money never has, nor ever will buy you this joyfulness. When we are owned by our assets and possessions, we are prisoners of the very things we own and worship. You no longer own your things, but they now own you.

Where is the freedom in this? We have desires and go after them to find out that the brief passing happiness of achieving a desire was only to be instantly replaced with yet another desire and, round and round we go.