Owning things is an obsession in our culture. If we own it, we feel we can control it; if we can control it, we feel it will give us more pleasure. The idea is an illusion.
The only things you keep in this world are the things you give away.
A revitalized offering of human energy could be the greatest windfall of all for our society to come out of the New Retirementality.
Warren Buffett has made the decision to give away almost all of his vast fortune. Sir John Templeton of Templeton Fund fame and a great wealth builder believes that seeking spiritual wealth is the next great challenge for the twenty-first century. He stated:
For more than 45 years, I worked diligently to help people obtain higher profits. This seemed to bring happiness to the investors, but only temporarily. It never gave them—or me—true happiness. Also, my diligence did not seem to help make the world a better place than I found it. During all that time I kept searching for ways my brief life on this planet could produce permanent benefits for everyone. So I sold all my moneymaking activities to a competitor in order to devote my life to a vastly more important purpose. I wanted to give 100 percent of my time and resources toward helping the world build spiritual wealth.
Templeton used his money to start the John Templeton Foundation in 1987. Each year his foundation donates over $20 million to encourage entrepreneurs who are trying various methods to increase our base of spiritual information. Because of his efforts, 65 medical graduate schools teach courses in spirituality. The foundation sponsors courses at over 400 universities to find out what has been, or might be, discovered through scientific research to enlarge human concepts of divinity.
Templeton has done this because he believes we need to address larger questions in life such as these: "Are there realities humans cannot comprehend that are vastly more awesome than the things we can see or touch?" "Is there an intellect more vast than humanity can imagine?" "Why do people who devote their lives to a noble purpose usually become happy?" Sir John Templeton became a happier man because he has found a way to give his life away.
By planning and saving for our own emancipation, we can liberate our own life to the point of giving it away to people and causes that we feel great passion about helping. This sort of noble goal has provided the needed boost of intrinsic motivation that many people have needed to establish the discipline and lifestyle necessary to arrive at a place of both emancipation and benevolence.
The kind of benevolence we are witnessing today goes beyond pushing a cart around a hospital. As Dave, my barber, informs me, volunteering is not the great answer to many people's retirement discomfort. He said, "I've watched a lot of guys go through the retirement cycle. They retire thinking they'll just take it easy. After a few months of nothing to do, they are bored with themselves. Then they decide to volunteer in some cause to get reinvigorated, but that is no magic move either. I've heard many people say that they were still unsatisfied even after volunteering. The key seems to be putting your life into something you are passionate about."
As Figure 22.1 shows, there are some well-defined intangibles that any volunteer needs to take from the experience to make it worthwhile.
As this figure illustrates, making a difference does not always translate into a sense of satisfaction. But it is a sense of satisfaction more than any other factor that makes the experience worthwhile for the volunteer. This is especially true as we see more people redesign their retirement to include volunteering as an important component of their lives.
Source: Civic Ventures
According to a study by Michael Callow, the concept of volunteering is often defined in altruistic terms, but the perceived motives for volunteering are often more egoistic.
In all cases, volunteering was viewed primarily as a choice endeavor that benefited not only others but also themselves. If they did not feel that they benefited personally from the experience, then there was little point in continuing to volunteer. The perceived motives for volunteering included: the feel-good factor, the need for socialization, a search for structure, and a search for purpose. Subjects identified two additional yet unexpected benefits that arose once they began to volunteer: a sense of control and reimbursements.
One important asset that any emancipated individual has to offer—and that society desperately needs—is experience. The experience you gained in achieving your own freedom can be the gift you give to charitable organizations. I'm not speaking of just sitting on a board but of actually donating the professional skills you've acquired to help take these organizations to a higher level of expertise. I'm inspired by the number of people who have told me that their ultimate goal is to give their expertise to causes they deeply believe in.
Chuck Palmer is one such example. Palmer is a CPA by training and has had a very successful career. He sold his practice but retained a few of his favorite accounts to keep himself connected to the business. Because he had retired early, he still felt he had a lot of energy and valuable time to give. When taking a close look at the organizations whose causes he admired, Palmer decided that the best gift he could give was not money but professional skill. Many of these organizations were in dire need of accounting and budgetary advice and management, which they couldn't afford. Palmer saw an opportunity for some creative benevolence. He now runs an accounting practice that helps a few select causes at absolutely no charge to the charitable organization. This sort of pro bono effort is catching on with many other professionals who have been blessed with both skill and financial prosperity. More than just giving away money, they want to give away their life, their wisdom, and their passion. This desire to give is not just obligatory but is fueled more by gratitude than anything else.
I have met the marketing professional who wants to help worthy nonprofits learn to be better at promoting their cause. There is the Internet engineer who wants to help charities learn to fully utilize the Internet for communicating with their constituents. There is the doctor who takes six trips a year to Third World countries to give free medical care. There is the chiropractor who takes trips to eastern Europe to treat people with long-standing industrial injuries for free. There is the business lawyer who helps nonprofits get their legal affairs in order. There is the former sales professional who now raises funds for her favorite charity. There is the former professor who now gives his life to helping illiterate adults. There is the entrepreneur who now helps his favorite causes to develop a business plan and acts as mentor and encourager to burned-out, nonprofit directors. There is the former executive who now teaches part-time at a community college. There is the former manager who is now a corporate coach. My personal accountant, Mark Eldridge of Financial Freedom, Inc., generously donates his services to nonprofit concerns.
Some of these people are giving their life away without material compensation because they have enough to sustain themselves. All of them feel they are optimizing their benevolent potential by utilizing their abilities and experience in a way that brings tangible change in other people's lives. They all attest that such benevolent expression, whether daily or periodic, has added a rich perspective to their sense of fulfillment and purpose.
University students today are literally bombarded by organizations saying, 'Come work with us.' I don't find that in the take out interviews for those who are retiring .. there is so much potential activity out there that is not being tapped or utilized.
— Freeman Bradley, author
The model for giving your life away is changing. According to a study by Peter D. Hart Research Associates entitled "The New Face of Retirement," one approach that appeals to the traditionally retired crowd today is a program that would offer retirees selected benefits for their volunteer efforts. Such benefits would include weekly stipends, education credits, or reduced costs for prescription drugs in exchange for 15 hours a week of community service. Sixty-one percent of retired Americans over the age of 50 express interest in this type of program, and 69 percent of non-retired people in this age group would like to see this sort of approach.
A 2005 study by MetLife Foundation and Civic Ventures revealed that retirees are looking for work that merges with volunteering initiatives. Half of adults 50 to 70 say they are interested in taking jobs now or in the future to help improve the quality of life in their communities; 78 percent of these want to help the poor, elderly, and others in need; 56 percent are interested in dealing with health issues; 55 percent are interested in teaching or other educational positions; and 45 percent want to work with youth in a program.
A compromise approach to contributing our time and efforts may well become a reality for several reasons. One is that many people who would like to donate their efforts to causes they believe in can use assistance. Many lower-income retirees said they would be highly motivated by a prescription drug incentive. Many retirees feel they are trading wealth for health with the large amounts of money they spend on prescription drugs and would gladly give of their time for such a trade-off.
The bottom line is that most people feel that they have something to give, but not all people feel they can afford to give. The traits that people offer as their most important potential contributions include:
Experience (36 percent)
Wisdom and perspective (30 percent)
Patience and freedom from other distractions (16 percent)
Time (13 percent)
Determination and resolve (8 percent)
One of the travesties of recent American culture is how little the premium is that we have placed on these traits and, in fact, dismiss them on the basis of a person's age. This cultural bias is changing because of the millions of baby boomers now entering later stages of life, Three in four Americans report being involved in some sort of community service during the past year. About 50 percent, however, admit that their involvement has been limited to one-time or sporadic involvement. A 2005 study on volunteering in the United States by the U.S. Bureau of Labor Statistics revealed that the volunteer ratio for those over 65 was only 25 percent, although the time commitment for this age group was higher than other groups. There seems to be plenty of upside for volunteering for the new retirees. Overwhelmingly, the greatest intrinsic motivation for those who are already retired is the need to feel important and engaged.
According to a Princeton survey, "The New Face of Work," fully half of all adults ages 50 to 75 say they are interested in taking jobs now or in the future to help improve the quality of life in their communities.
The coming generation of mature Americans will not allow itself to be labeled secondary citizens relegated to retirement communities as past generations have been and will continue to be engaged in the communities where they live—even if it means living in two communities. Current involvement in raising money for charities, helping the elderly, working with children and youth, and involvement in local community issues point to a higher sense of civic engagement for future retirees. These individuals are not going to give their time and effort to just anybody. Instead, they will focus on the causes and people who recognize the unique contribution of wisdom, experience, and energy they bring. Their efforts will go to causes that help them feel important.
I think we need a new word to replace 'retirement.' Retirement in the generation preceding mine meant that you worked until age 65 and at that point you ceased working, took a well-deserved rest. If you had the means, you went to Florida and played golf, because you had very little time remaining. Now one retires at 55 or 65 with a number of years left. With much more energy and certainly far better health, one has time to be used more constructively than awaiting death.
— Dick Shore, retired administrator, 69
One of the heroes of the highly engaged retiree has been former President Jimmy Carter. More than 43 percent of today's retirees said Carter was a great example of the ideals they are seeking in retirement. Carter, since leaving the presidency over 20 years ago, has worked tirelessly for Habitat for Humanity and as an informal diplomatic ambassador. Other famous retirees who get the nod of approval include Colin Powell, John Glenn, and Jerry Lewis—all of whom ignored the old rules and definitions of retirement.
According to the Hart study, well-defined new rules for retirement taking hold in our society are the following:
Assertiveness. Instead of shrinking from old age and retirement, Americans of this generation are embracing later life and asserting themselves as valuable members of the community with special and unique traits to offer. Increasingly, seniors see their maturity as an asset rather than a frailty, and, as a result, they are eager to stay engaged in, rather than withdrawn from, their environment.
Meaningful involvement. Americans' attitudes toward volunteering and community service reflect their general approach to retirement and later life. Although these adults express a strong desire to be involved in volunteer activities, they are seeking meaningful activities that take advantage of their special traits rather than activities that merely fill time.
A benevolence boom. Even though a majority of mature Americans express a promising interest in incorporating volunteer and community service activities into their retirement plans, those who have not yet retired express immeasurably more interest. In fact, the findings suggest that this generation of older adults may flood our nation's civic institutions early in this century in the same way in which they overwhelmed the institutions of higher education in the 1950s and 1960s.
The same kind of radical baby boomer thinking and involvement that has brought dynamic change to the rules of business and society is working its way into charitable causes and civic engagement. Take, for example, the new wave of philanthropists called "cyber-saints," who are bringing an entrepreneurial twist to the world of charity. The average high-tech millionaire is not some Gen-X techie. The average millionaire is a person who has worked 23 years in the field and comes from a modest economic background.
In venture philanthropy, people are throwing more than just money at causes. They are integrating the elements that make other sectors of the economy successful and bringing them to the philanthropic sector, such as long-range business goals, projections of need, accountability, and a plan for self-sufficiency. Cate Muther, a former Cisco executive who left to found a charitable fund, calls the new type of giving "philanthropy with an attitude."
In coming years we will witness a tidal wave of creative solutions and energetic efforts toward remedying social injustices and long -standing problems. This benevolence boom will be fueled by the boomers' continuing spiritual quest to find real meaning in this world. Many have found that material success has left them wanting. Many have come to believe that the vacuous void in their soul they have experienced as a result of a life of accumulating can be filled by a life of giving. There are millions who are looking for the right opportunity to apply the things they have learned into something they can believe in.
There are a million ways to give your life away. Each method is as unique as the experience of the individual doing the giving. What valuable skills and insights have you gained in your journey? What causes could greatly benefit from the wisdom and insight you possess? What societal ills and injustices are you passionate about fixing? Could your time and expertise do more toward fixing these problems than just writing out a check? Would having the goal of giving your life away act as a powerful motivator to help you reach financial independence so you could apply your time as freely as you wish?
In my own life, such a goal has been the most potent motivator for an aggressive and disciplined savings program. My wife and I have been much more disciplined than what comes naturally because we want the freedom to pursue efforts that we think can make the most impact in the world. My company has been involved for years in writing life skills curricula for schools, and one of those curricula was on the topic of suicide prevention. A book I wrote on the topic was translated into Spanish, Polish, and Slavic, and I started receiving invitations to countries to help them find ways of addressing suicide prevention with their young people. What I found in many of these countries were people eager to help their young but lacking the resources or training to do so. They simply could not afford such "luxuries."
Together with other concerned parties, we started ONE LIFE for the purpose of providing suicide prevention education and life skills training for teens anywhere in the world at no charge to the recipients. One thing you quickly learn by spending time in Third World countries is that they all look to the United States for answers. We have the most advanced answers for what ails the world. We also have the kinds of resources that most of these people could never dream of having. In ONE LIFE I found a way to connect American resources and resourcefulness to a tragic need in other nations without burdening those who want to help with impossible expenses. This is a model of benevolence that I believe we will see more of in coming years. We will utilize our entrepreneurial spirit and resourcefulness to help other people of the world solve their physical, social, and practical problems. We in America have so much that we can give ideas and resources to help the many unmet needs in our world.
Consider the following facts. If we could shrink the earth's nearly 6 billion people to a village of 100 people, the profile of that village would look like this.
57 Asians, 21 Europeans, 14 North and South Americans, and 8 Africans.
50 suffering from malnutrition.
70 unable to read.
80 living in substandard housing.
Only 1 with a college education.
50 percent of the world's wealth in the hands of 6 people.
And 6 of these people would be citizens of the United States.
According to the Spectrem Group, at last count there were 8.3 million millionaires in America, and that number is growing each day. To qualify, people have to possess $1 million or more in investable assets, meaning the value of their home doesn't count. There are now over 950,000 pentamillionaires—those with investable assets of over $5 million. That's a 26 percent increase over 2004!
How much accumulation is enough? At what point do we say, "I've got what I need to live a comfortable life; now how can I put some of this wealth to work in helping others?" And I don't believe you have to possess a million dollars to make a difference in the world. What this world needs more than anything is energy and creative approaches to perennial problems. Many people of this generation are catching the vision of giving their life away as a route to true fulfillment. Consider that at least one-half of the men and women entering seminaries today to become priests, ministers, or rabbis are over the age of 35! Many of these people are sacrificing successful careers and prosperous lifestyles but are content in their transition.
The people making this transition to service have come to their decision after wrestling with the idea that there must be more to life. Those who have pursued religious studies later in life share two essential traits: (1) they were willing to risk, and (2) they were willing to search.
This new breed of midlife clergy, after asking themselves, "What am I living for?" seem to be motivated by three common things: a sense of dissatisfaction, a desire to serve, and a sense of calling. The dissatisfaction came with the realization that material achievements were not satisfying their spiritual appetites. The sense of service came when taking a personal inventory of their strengths and weaknesses and the decision that the best use they could make of those abilities was in the service of others. The sense of calling was expressed as an "inner leading" that God was calling them to a life of giving.
Ted Schmitt, a senior executive at a major movie studio who made a transition to a life of religious service, articulated his decision this way: "When problems hit and family members died, it made me evaluate what life is. Is it corporate quarterly profits or something more? I didn't think I had the ability not to be selfish, not to worry about money and things, but those things aren't important. Now I have no aspirations to do anything but be a good priest."
It does not require religious service to give your life away. The means and methods by which people are doing so are incredibly diverse. Some do so by giving money to causes they want promoted, which lends an extra layer of meaning to the everyday work they do to gain that money. Still others do it by lending their expertise and skill to causes and organizations that are making a difference in people's lives. They are doing it at different levels of commitment. Some give a day or two a month, and others give a part or all of every day. The important thing for all these people is that they feel they've translated their abilities and assets from self-serving to the realm of benevolence.
I have come to believe that the great and ultimate end of the New Retirementality is to emancipate our lives financially so that we can follow the lead of our working soul. This means doing work that gives our hands, our head, and our heart satisfaction. I'm working on the assumption that I don't get a second shot at this earthly existence. I certainly don't want to give away my life to frustrating work and empty pursuits. My hope is that many reading this book will not only pursue and achieve financial emancipation, but that this emancipation will lead to more involvement in the service of some aspect of human injustice, suffering, or other noble pursuits serving your fellow man.
With emancipation, the great reward to both ourselves and the world we live in will be that we are now free to give our life away. As long as we owe others and must burn the candle at both ends to pay those we owe, we are not free. As long as we are handcuffed or chained to work that takes more from us than it gives us, we are not free. As long as we are driven to get results to such extremes that all our meaningful relationships suffer, we are not free.
Freedom is the goal. Freedom to give is the ultimate goal.