Five Years of Flipped Switches: Thoughts About Later Life Transitions

 

Sunday, August 3, 2025, is a significant date for me. It is the fifth anniversary of the publication of my sixth book, Flipping A Switch, which describes 35 common transitions that people make in later life. Except for laws with acronyms like SECURE 2.0 and OBBA and annually inflation-indexed numbers related to income taxes and Social Security, the book is current and evergreen.

 In honor of the book Flipping A Switch’s fifth birthday, below are eight key take-aways:

 

Acknowledge a Mindset Shift- Recognize that retirement involves switching from savings mode (accumulation) to spending mode (decumulation), both mentally and financially. This can be very difficult to do for “super savers” who have seen their account balances grow for decades.

 

Give Yourself Permission to Spend- Allow yourself to enjoy the nest egg you built, especially during the “go-go” years (age 65-74) of early retirement. Withdrawing your own money is not the same as a loss due to a stock market downturn. If you don’t spend you money, someone else will.

 

Structure Your Income Stream- Set up a system for regular asset withdrawals to manage cash flow, pay bills, and reduce stress. Ways to do this include purchasing low-expense annuities, creating a bond or CD ladder, and setting up mutual fund automatic withdrawal plans.

 

Review Your Budget- Adjust your spending plan (budget) to reflect new patterns in retirement. Some people have more income than when they were working, when multiple income streams are combined, and some people have less. Health care and leisure costs often increase in later life.

 

Redefine Your Purpose- Engage in activities that provide meaning and structure to your day. For example, part-time work, physical activity, volunteer activities, adult education classes, creative pursuits, a hobby, family care-giving, participation in organizations, and/or an encore career.

 

Manage RMDs- Understand when and how to take required minimum distributions, which are described an “the mandatory flipped switch” in the book. Also create a tax-efficient withdrawal plan by coordinating withdrawals from tax-deferred, tax-free, and taxable (brokerage) accounts.

 

Don’t Downplay the Non-Financials- Know that financial changes like drawing down savings or taking RMDs are only part of the picture. Lifestyle shifts (e.g., new routines) and social transitions (renegotiated roles with family and new community ties) are equally important.

 

Be Flexible- Revisit and revise your retirement lifestyle over time. No plan lasts forever. Adapt to unexpected events like inflation, illness, or stock market volatility. Review your investments regularly and rebalance your portfolio to reduce risk.

 

In summary: Before you retire, you worked hard. Give yourself permission to spend your savings and enjoy the fruits of your labor with confidence and peace of mind.

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.