Downsizing: Lessons Learned From Our Move

When we decided to downsize after 40 years in the same home, we learned some valuable lessons along the way.

When I made the decision to change careers after three decades in healthcare, I knew it would impact every aspect of my life, including my retirement plans. The stability and predictability I had counted on was suddenly replaced with uncertainty.

The Challenge of Starting Over

At 55, I found myself in a position many would consider risky. I had built up a substantial retirement account through my hospital's pension plan and my own contributions to a 403(b). But my new path as a consultant meant leaving that structured environment behind.

The first challenge was understanding how this career change would affect my retirement timeline. Would I need to work longer? How would my income fluctuations impact my ability to save? These questions kept me up at night.

Reassessing My Retirement Strategy

Working with my Generic Investments advisor, I took a comprehensive look at my retirement strategy. We made several key adjustments:

• Revised timeline: I adjusted my retirement age from 65 to 68, giving me more time to build savings in my new career.
• Maximized tax-advantaged accounts: I opened a SEP IRA as a self-employed consultant and contributed the maximum allowed.
• Diversified income streams: I developed multiple service offerings to create more stable income, which helped with consistent retirement contributions.
• Adjusted investment allocation: We slightly increased my equity exposure to help make up for the potential shortfall from changing careers.

Embracing Flexibility

Perhaps the most important lesson I learned was the value of flexibility. My rigid vision of retirement at a specific age with a specific lifestyle had to evolve. I came to see retirement not as a fixed point in time but as a gradual transition.

This mindset shift was liberating. I began to focus on building a life that I enjoyed now, rather than postponing happiness for some future retirement date. My consulting work became something I could envision continuing part-time even after "official" retirement.

The Unexpected Benefits

What surprised me most were the unexpected benefits of this mid-life career change. My new work was more intellectually stimulating and offered greater flexibility. I found myself less burned out and more engaged, which made the prospect of working a few extra years much more appealing.

Additionally, my new network of clients and colleagues opened up opportunities I hadn't anticipated, including potential part-time consulting arrangements that could supplement my retirement income.

Advice for Others Considering a Change

For others contemplating a significant career change later in life, I offer these insights from my experience:

1. Work with a financial advisor who understands your specific situation and can help you adjust your retirement strategy accordingly.
2. Be realistic about the potential impact on your retirement timeline and savings, but don't let fear prevent you from making a change that could improve your quality of life.
3. Consider how your new career might transition into retirement—could it provide part-time income or fulfilling work during your retirement years?
4. Maximize retirement contributions during high-income periods to help compensate for any leaner years during the transition.

A New Vision for Retirement

Five years into my career change, I'm more confident than ever in my retirement readiness. While my path looks different than I originally planned, it's one that better reflects who I am and what I value.

Retirement planning isn't just about reaching a certain number in your account—it's about creating a sustainable lifestyle that brings you fulfillment. Sometimes, as in my case, a bold mid-life change can actually lead to a more secure and satisfying retirement, even if the journey takes a few unexpected turns along the way.