Remember Yoda? The short little bald guy in Star Wars? He lived for 900 years! What did that guy eat for breakfast? Wheaties? Kale? Thin Mint Girl Scout Cookies? He must’ve had great jeans (levi’s, true religion, 7 for all mankind). He also probably meditated, exercised, and took some serious supplements.

Ya think Yoda ran out of money? How much money did he have in his 401k? Do you think he saved enough? Who knows, maybe he had an annuity or something. He probably invested in Google before it went public.

What if you live a lot longer than you think you will?

In 1980, the average life expectancy was 73 years old. Today, it’s 78 (source National Center for Health Statistics). I wouldn’t be surprised if the average life expectancy approached 85-90 years within 30-40 years.

Because we are living longer (or am I just going grey earlier?), we have to save more money to fund a longer retirement period. Social security will soon be kaputnicksville. Company pensions aren’t so big. The responsibility is on you to do the saving and investing. Like you didn’t have enough on your plate!

I’m in the trenches doing retirement planning with my clients. Here’s what I’m seeing:

All of my clients play backgammon, do needlepoint, play bingo, and go to the 4pm dinner buffets for $15 . They all live in Florida and wear white leather shoes. (still reading? See below for the real stuff)

Many of my clients aren’t retiring cold turkey. They are retiring later than they thought they would. They are working part time because they either need the money, or because they love what they do.

They are considering selling part of their business – but they are still working as a part owner and receiving some cash flow. Cha ching.

My clients are having mini-retirements. They work for a few years, take a year off, learn something new, and use the new skill to do something new. They’re rock stars. They are having more fun while they work.

By doing some part time work, my clients feel like they are more engaged in their lives. The thought of playing golf every day and eating bon bons just doesn’t do it for them.

Working part time in retirement could impact your investment portfolio.

If you work part time or just retire later, there is more time for you to let your money compound (grow) and work for you. Word up.
If you are in your 30s or 40s, even 50s – You may be able to take more risk in your portfolio because you won’t need the money as soon as you think. Your risk tolerance may not change, but your capacity to take risk may be bigger. Please note I am not telling you to take more risk – everyone’s financial situation is different.
If you start saving early enough, you may not have to save as much as you think. Major humungo caveat – Most people haven’t saved enough to fund their retirement, but working part time in retirement sure does help.

Bottom line – You have to plan to live as long as Yoda did. You don’t want to run out of money. You need a plan (email me I don’t bite and I may be able to help you.) May the force be with you.

Important Disclosures: These articles are provided for informational and educational purposes only, represents our views as of the date of the posting only, and may change without notice. Some of the information has been obtained from third parties and believed to be reliable, but is not guaranteed. We have not considered any investment objectives or financial situations of any investors and we are not responsible for consequences for any decisions made based on the information in the blogs. There is risk of loss from investing in securities, which varies depending on different types of investments. Forward looking statements are based on assumptions only and no reliance should be placed on such statements. We do not guarantee the accuracy or completeness of the information displayed.

Author's Bio: 

Justin Krane, a CERTIFIED FINANCIAL PLANNERTM professional, is the founder of Krane Financial Solutions. Known for his savvy, holistic approach to financial planning, he advises his clients on how to unite their money with their lives and businesses.

Using a unique system developed from his studies of financial psychology, Justin partners with entrepreneurs to identify, clarify and meet goals for increasing their business revenue. He works with entrepreneurs to create a bigger vision for their business with education and financial modeling.