Retiring Smarter, Investing Globally, and Managing Life Transitions
When people think about retirement, they often imagine a slower pace and reduced spending. But Ric Edelman, one of America’s most trusted financial experts, is here to tell you that’s often not the case.
Retirement Isn’t Cheaper—It’s Just Different
A recent survey shared by Edelman revealed that two-thirds of retirees actually spend more after leaving the workforce. Why? Because they finally have time to travel, enjoy hobbies, and take on new experiences—all of which cost money. Add healthcare and long-term care expenses, and it’s easy to see why some retirees feel financially stretched. For a married couple, healthcare alone may cost $400,000 over their retirement years.
Edelman’s message is clear: assume expenses go up, not down. Inflation will eat away at your purchasing power, and leisure isn’t free. You need to plan for this reality and save accordingly.
Want to Start a Business? Be Realistic
Starting a business after retirement or mid-career is exciting, but it’s rarely easy. Edelman advises budgeting twice the money and time you think you’ll need to become profitable. Use personal savings, lines of credit, and even small loans from family—but don’t quit your day job right away. Ease into it. Start on the side, build slowly, and minimize your risk.
Retiring Abroad? Rent First, Buy Later
For those dreaming of retiring abroad, Edelman warns against rushing to buy property. Renting for 1–2 years gives you time to understand the local lifestyle, costs, and laws. Some countries have tight ownership restrictions or require large upfront commitments for residency.
Investing overseas? Currency fluctuations can wipe out returns. Edelman urges you to understand tax implications and consult a professional before committing your portfolio internationally.
Social Security: Wait If You Can
When it comes to Social Security, Edelman recommends waiting until full retirement unless you truly need the money. Taking benefits early—while still working—can lead to unnecessary taxation and reduced payouts. He also warned that younger generations may face future changes in eligibility or benefit levels due to national debt concerns.
Young Couples: Build Cash First, Then Invest
For young couples, Edelman laid out a priority checklist:
- Max out employer retirement contributions.
- Build a cash reserve that covers 6 months to 2 years of expenses.
- Once that’s in place, move to mutual funds and other long-term investments.
This “pre-fund your future” strategy ensures flexibility and resilience no matter what life throws your way.
Why Competition Still Matters
In an insightful conversation with economist Michael Porter, Edelman discussed how competition fuels innovation, quality, and value—but only when protected by strong regulation. Too many mergers and acquisitions, Porter warned, lead to market domination, hurting consumers.
However, he also noted that the internet has leveled the playing field, empowering consumers with information and choices that help drive down prices. His advice? Be proactive and informed in your purchases. That’s how you shape the economy.
Cut Expenses When Your Income Drops
Finally, Edelman offered practical advice for handling income cuts: cut your lifestyle too. Don’t cling to unsustainable habits. Sell the second car. Cancel the vacation. Shift your priorities. It’s better to live lean now than drown in debt later.
Conclusion:
From navigating retirement expenses to launching a side business or investing overseas, Ric Edelman’s advice is grounded in realism, strategy, and long-term thinking. Whether you’re just starting out or planning your next chapter, the key takeaway is this: stay informed, stay flexible, and plan like your future depends on it—because it does.
All information provided is for educational purposes only and does not constitute investment, legal or tax advice; an offer to buy or sell any security or insurance product; or an endorsement of any third party or such third party’s views. The information contained herein has been obtained from sources we believe to be reliable but is not guaranteed as to its accuracy or completeness. Whenever there are hyperlinks to third-party content, this information is intended to provide additional perspective and should not be construed as an endorsement of any services, products, guidance, individuals or points of view outside Edelman Financial Engines. All examples are hypothetical and for illustrative purposes only. Please contact us for more complete information based on your personal circumstances and to obtain personal individual investment advice.
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