[Video] What the Most Successful FRS Special-Risk Retirees Do ... That Others Don't!

We’ve been working with Special Risk FRS folks for a lot of years—over 15. And in that time, like JK Simmons says in the Farmers Insurance commercial, “We know a thing or two, because we’ve seen a thing or two.” What we’ve seen is a lot of successful retirements, and we’ve realized there are a few things that those who’ve had the most successful retirements have in common.

So, after working with so many Special Risk retirees and pre-retires over the years, we couldn’t help but notice that those people who seemed to have set up the best retirements for themselves, well, they did a lot of things the same. Call them traits, but we can’t ignore that the folks who were successful had them—and the ones who were maybe a little less successful, not so much.

And some of these may seem obvious, as I lay them out here. But if they’re so obvious, then why doesn’t everyone do them? Well, that answer probably goes beyond these videos.

So the first trait is that the successful retirees saved early and saved well. Now, in real terms, that means they probably participated in their Deferred Comp plan right from the start. They didn’t wait until they had extra cash flows at home to start saving at work.

Because let’s face it—that’s probably never going to happen. They set aside their savings first, in effect, paying themselves first, and then lived on what was left over.

Hey, easy to talk about, not so easy to implement. But what we found was that those who just did it—just set that regular contribution aside—figured out how to make the rest work and developed savings as a lifelong habit. And that made all that difference.

Another trait we consistently see among successful FRS Special Risk retirees is that they set up rules for themselves and they don’t break them. Like in that previous trait, for example—they established savings as part of their long-term financial plan and never stopped. Every paycheck, every year.

And the most successful had rules about investing too. They had an investment strategy and stuck to it. The folks that didn’t do so well were the ones that tried lots of different things, hoping they’d hit it big. They tried to outguess markets and pick good stocks over bad and market-time. Those are pretty low-probability strategies.

Another trait we saw was that the successful retiree wasn’t afraid to ask for help. This is what kept them out of trouble. Talking to plan people at FRS, calling the FRS helpline, talking to their own seasoned, trusted advisor who really understood their plan and FRS—all are things that helped the successful retiree learn and make better choices.

Finally—and this one isn’t as far out in left field as it might sound—the most successful retirees tend to have better relationships. I’m talking especially about with their spouse or partner. The reality is, nothing destroys a financial plan quite like a divorce and splitting assets in two.

Thirty-plus years of financial coaching and this is one thing I know to be true: Financial success isn’t always about making good decisions with just your money. It often involves a lot of other things about how we live our lives, and our relationships are certainly a big part of that.

If you’re wondering how your retirement track is stacking up and would like a suggestion or two on things you might want to consider, drop us a line—we’d be happy to talk! And get our book! It’s full of great ideas on how you can make your FRS retirement even better.