Marilyn Noble is 62 years old and married to Jerry, who is 66. The couple has one grown daughter. When Marilyn comes into my office, she is lively and full of vigor. She moves at 90 miles an hour and has no intention of slowing down after she retires. For Marilyn and Jerry Noble, life is just starting to get good.

Marilyn would never describe herself as wealthy. She isn’t CEO of a Fortune 500 Company or heiress to a hotel empire. Marilyn is an eleventh grade AP language and composition teacher, and she recently earned a 25-year length of service number in the State of Georgia’s Teacher Retirement System (TRS). She’s not rich in a traditional sense. Her liquid net worth is well south of $1 million.

On one of her more recent office visits, Marilyn wanted to know if she could retire this year or if she would need to wait. I had an answer for her—and it’s not the answer she was expecting.

This chapter is all about the importance of purpose—figuring out what you want and need your retirement money for. I want to start by telling you about the life and finances of Marilyn Noble. I’ve known Marilyn for years, and “purpose” might as well be her middle name.

Marilyn is going to have a small but meaningful pension from the Georgia TRS—about $2,800 a month. She will also be able to receive social security income, but the amount is drastically reduced for her. This is because the TRS and teachers struck a deal that raised future pensions in exchange for lowering future social security payments. So even at 65, her social security will only be $400 a month.

Jerry, like many other sixty-somethings in America, has basically worked for one employer his entire life. His social security is going to be higher, at $1,950 a month. After all these years he has a tiny pension of $185 a month. As you can see, none of these are big numbers.

Jerry’s 401(k) is $60,000. All of Marilyn’s retirement accounts, her teacher’s 403(b) plan, add up to $630,000. Their combined liquid retirement assets are $690,000.

I analyze these numbers, incorporating all the various income streams she has available to her now, and it comes to $4,935 a month. Marilyn says to me, “I need more than that. I need $6,500 a month.” If we incorporate taxes into the equation, Marilyn will actually need approximately $7,500 a month to net down to $6,500 in spending.

I ask her why she needs $6,500 a month, and she says it’s the amount that will allow her to maintain two small houses, travel twice a year, maintain her Jet Skis, pay entrance dues for her music competitions, keep the lights on, etc. In other words, she feels she needs $6,500 a month to live the life she wants to live.

I take $7,500 as the pretax need and subtract the guaranteed streams of pretax income—the $4,935. She needs a $2,565 boost per month in order to live the life she wants to live. How’s she going to get that?

This is why she hired me. It’s my job to help Marilyn fill the gap (FTG) in her income.

And here’s how I do it.

Marilyn is going to take her $690,000, and she’s going to be an income investor. She’s going to pull approximately 4.5 percent of that number: $31,050 a year. Divide that by 12. That’s about $2,600 a month. That fixes the deficit. Marilyn wins.

She now has $4,935 a month, plus $2,600. All of a sudden her gross income is right near the $7,500 she needs to net the $6,500 a month—a monthly amount that should be sustainable for the remainder of her life (and Jerry’s, too).

It’s fantastic that Marilyn was able to reach the amount of money she needed, but it is not necessarily coincidental. Like the Benjamins, the Nobles have planned well. We were able to add up Marilyn’s assets, figure out what they could produce for her, and then tailor her budget to that number.

The next component is that Marilyn’s house is worth $450,000, on which she owes $100,000. She’s going to sell the house for $450,000, pay off the mortgage, and end up with $350,000.

Here’s where things start to get fun. Marilyn takes the $350,000 and buys two properties. First she gets a very nice small condo/townhouse a little bit outside of Atlanta for $200,000. She pays for it in cash. No mortgage. Depending on where you live, you might be thinking, “Um, Wes? What kind of dump can she get for $200,000?” But in Atlanta that’s very realistic—Marilyn finds an awesome place.

Marilyn also has a little plot of land on the remote Lake Fontana in North Carolina. She and Jerry are going to take that $150,000 and build a 1,800-square-foot cabin on that lot as their second property. Romantic? You’ll have to ask them. That’s out of my jurisdiction.

Marilyn just aced money secret #3: she no longer has a mortgage. Pop the no-mortgage champagne—the sweetest vintage in town.

Does Marilyn have to worry about all those “other” expenses like property taxes, homeowner’s insurance, condo assessments, maintenance fees, etc.? Yes, but don’t fret. All that was already accounted for in the $6,500-a-month budget.

What’s so great about Marilyn’s plan is that she has two different places. She can go back and forth. The reason she still wants to have a place in Atlanta is because she loves art, music, and the culture of Atlanta. She goes to the High Museum, the Alliance Theatre, and is a dedicated patron of Georgia Shakespeare. And she absolutely loves the symphony. She gets symphony tickets with her friends the Millers, and together they go six or eight times a year. Marilyn and Jerry have a whole list of cool cultural stuff they do. She also wants to maintain the condo in Atlanta because her doctors and dentists are here.

But the real reason I’m telling you the story of Marilyn Noble is because she’s an absolute all-star when it comes to money secret #1: know what your retirement money is for—and use the hell out of it.

Marilyn is one of my favorite happy retirees because her core pursuits are the stuff of legend. She proudly celebrates her Scottish roots by playing in a Scottish band. Jerry is a bagpiper, and Marilyn is a flourishing tenor drummer. Once a year in Atlanta her band hosts the Stone Mountain Highland Games—a Highland festival where people wear Scottish kilts and eat Scottish food. Her band competes four times a year. Marilyn told me she has too much to do to go to work!

Marilyn’s 35-year-old daughter lives in rural Georgia and recently set up something called the Backyard Market. It’s a local food market, selling local clothes, local art, wooden bowls—the whole nine yards. Marilyn is going to help her daughter get her new business off the ground. Can you imagine a more rewarding way to bond with your adult child?

Marilyn is Catholic. She and Jerry go to Mass every Sunday in Atlanta, and there’s a small church near Lake Fontana she attends when she’s there. She is also a member of the St. Andrew’s Society—another Highlands Association nonprofit. In fact, she does their newsletter every quarter. You could say she’s well-rounded.

Marilyn also volunteers. Most happy retirees do. Marilyn serves at the Pregnancy Aid Center, helping pregnant moms and teens manage their financial habits. She travels to Hapeville, Georgia to do this twice a month—and that’s on top of her teaching schedule.

In case you couldn’t tell, Marilyn is active. She works out, doing circuit training a couple of times a week. She swims at the YMCA. She water skis. She has two used Jet Skis up at Lake Fontana that she’ll be using more often once the cabin is built.

Not to be outdone, Jerry works out at the gym four times a week. He loves to learn. He’ll soon be taking classes at Georgia State University in downtown Atlanta. He’s going to get a degree in music. He plays the guitar, the banjo, and the dulcimer. (Yeah, I don’t really know what it is, either. But apparently Jerry can rock out on it.)

Are you starting to wish you could retire today? I can’t promise that, but I will promise you can do it sooner than you think if you emulate people like the Nobles. They saved money for a purpose, and now they can spend it on their retirement dreams.

This summer Jerry and Marilyn are taking a trip. They’ll start in Vancouver, then go over to Victoria, then to a Highlands festival, then Jasper, then Banff, then Calgary, then back to Atlanta. It’s going to be their fortieth anniversary trip and their celebration of retirement—now that I gave them the green light to retire.

Despite all this, Marilyn recently confessed something to me.

“You know what, Wes?” she said. “I might want to work part-time. There are a couple of things I’d love to do, just for fun, and walk home at the end of the night and not have to worry about it.” I wasn’t surprised at all. Marilyn is the type of person who engages with life wherever she is. Of course she’d want to find a fun job—and add another income stream to boot.

Remember how Katie Benjamin plans to work in real estate and teach spin classes after she’s retired? I hope you’re starting to see a pattern. The physical activity, the part-time jobs, the staying engaged with friends and colleagues—any way you slice it, the retirees in the happy group know what they’re doing.

Marilyn is the ultimate happy retiree. She and Jerry display every one of the five money secrets you’ll learn in this book. She’s got a little bit of income from a lot of places. We found a way to make sure she gets 4 to 5 percent from her savings and use those streams to fill the gap for the rest of her life. She has a ton of core pursuits and passions and no mortgage. She has two fully paid for, very different homes in different environments—one in the country, one in the city.

The day I finished analyzing Marilyn’s numbers, she told me she could technically retire in July but that she’d get an extra $70 a month if she waited another year. Do you know what I told her? I told her to retire today. I wouldn’t let her wait an extra year for $70! She doesn’t need it to live the life she wants to live.

Marilyn Noble, at 62, is retiring sooner than she thought.

Marilyn texted Jerry right then and there—from our meeting. I wish I could have been there to see his face when the words “WE CAN RETIRE IN 2014!” appeared on the screen.

Bravo Marilyn. Couldn’t happen to a nicer person.

And you could be next.

You Get to Choose the Kind of Life You Want to Lead

“But Wes,” you say. “I can’t just join a Scottish band and expect to be a happy retiree.”

Nor should you. What works for Marilyn Noble won’t work for you—and vice versa. The trick is to figure out what you want, and how your money will fuel the life you want to live.

You’ve worked hard and saved money, but what good is it unless you know how you want to spend it?

This is uncharted territory for the standard retirement planning book. Most will teach you how to make money but stop there. What do you do with it once you have it? Does that part just take care of itself? No, it does not. You have to choose. Part of showing you how to retire early is showing you how to retire happy. It doesn’t happen because of the money you save, but rather with the help of that money.

Let’s do an exercise. Don’t worry—it will be relatively quick and painless (I promise you won’t sweat). Get out a pen or pencil, and answer the following eight questions right here in this book.

    1. How many vacations would you like to take each year?

        

    2. Where would you like to travel? What places do you want to see? (Could include both exotic locales and local treasures.)

        

        

    3. What are some activities you’d like to get involved in? Activities you’d like to get more involved in?

        

        

    4. What have you been putting off or letting slip that you would like to change, starting this year—and especially during your retirement years? Spending more time with friends, reconnecting with old acquaintances, taking a women’s trip, taking a guys’ trip, enjoying more time with family? Devoting more time to exercising or eating healthier?

        

        

        

    5. What does a “perfect day” or even just a “fulfilling day” in retirement look like for you? Sketch out a rough schedule below:

        8 a.m.

        10 a.m.

        12 noon

        2 p.m.

        4 p.m.

        6 p.m.

        8 p.m.

        10 p.m.

    6. Are there sports or activities you’re interested in playing or learning? Some ideas: golf, tennis, sailing, ceramics, collage, or photography.

        

        

    7. What communities would you like to be more involved in? Some ideas: your church, neighborhood association, Rotary Club, Kiwanis Club, a local park conservancy, or local Jewish Community Center.

        

        

    8. What are some nonprofits and organizations where you might like to volunteer?

        

        

There are no right or wrong answers here—this list will look different for everyone. All I’m trying to do is get you to start being honest about why you want money and what you want to do with it. Remember: it isn’t about the money; it’s about the money providing the framework for the life you want to live.

The sooner you can get clear on that, the sooner you can start working toward your goals.

Core Pursuits: Why You Need Them

Think of a core pursuit as a hobby on steroids. It isn’t just something you dabble in; it’s something that drives and fulfills you. You don’t need a million of them, but you do need at least three. A core pursuit should help define you, bringing into focus the things that matter most. You do it often, and you think about it even more.

My father has always been a man with many core pursuits. In fact, even though he is in a position to retire, he still hasn’t pulled the trigger yet. He still isn’t ready to give up life as a veterinarian running his own practice, curing all kinds of cats and dogs. (In fact, according to him, I owe a big thank-you to golden retrievers, as their predisposition toward hip dysplasia helped him afford to put me through college. Thanks, Old Yeller.)

But being a vet is just his occupation—it doesn’t come close to defining him. My father is a Civil War reenactor and historian. He’s a leather-smith, meaning he makes his own bridles and saddles for the Percheron he rides (by the way, if you haven’t seen a Percheron, just imagine a slightly smaller version of the Budweiser Clydesdale). Dad is also an amateur blacksmith, an amateur dressage and steeplechase rider, and a guitar player. He spent two years as a pirate reenactor until discovering he got seasick on ships. He’s been, by turn, a furniture maker, trail rider, softball enthusiast, and mountain biker. He’s even into fencing, preferring the saber to the épée or foil.

You can see why I grew up with an innate appreciation of core pursuits!

My father’s pursuits have never fallen into the traditional categories. He doesn’t like to travel, doesn’t even believe in playing golf. Yet he’s always been the kind of man who could retire on Monday and be even busier on Tuesday because of all his core pursuits. He loves them so much! He has a tremendous sense of all these things burning inside him in addition to his job as a veterinarian specializing in orthopedic surgery (which he still loves).

I’ve always looked to emulate that in my life. If you want to be one of the happiest retirees, you need to do the same. I inherently knew it was going to be a tremendous part of the happiness equation because I had witnessed how my dad’s core pursuits have kept him younger than his years. It’s one of the fundamentals of retirement happiness; I won’t budge an inch on this one. If you want to be happy in retirement, you must have core pursuits!

As we’ve seen, Marilyn Noble is a great example of a happy retiree who has a strong, exciting set of core pursuits that feed and fulfill her. Now let’s take a look at her polar opposite: Arthur McMullen.

Find Pursuits That Excite You—Don’t Be Like Mac

Arthur “Mac” McMullen was a guy I used to work for here in Atlanta. He was part of a big utility company and worked there for 32 years. He ended up with a good pension, several million dollars in company stock, and a 401(k) with close to $3 million.

The problem was, Mac was so wrapped up in his career he did little else. As he would put it, he had no core pursuits at all. Even though he was able to retire at a fairly young age—63—he soon found himself battling depression. He had never been depressed in his life, but without work, he lost the only identity and sense of purpose he had ever known.

Was money an issue? No. Mac had plenty of that, and plenty of time to spend it. The problem was that he had no idea what to do with all his money and time. It’s pretty tough to start playing golf when you’re 63 years old!

It’s important to understand at an early age that having a core set of things you love to do is part of having optimal health—part of having a healthy balance when it comes to work and family and your own psyche. You can’t just work for the dream of having a big pile of money—unless your life’s purpose is swimming in a huge pile of money. And if that is the case, I think you might have some other problems. It worked for Scrooge McDuck, but it probably won’t work for you.

Money itself doesn’t mean anything to us. Why would it? Do the pages of a book mean anything? Of course not. It’s the meaning of the words arranged on those pages that makes a book significant. Money works the same way. It only has the meaning we assign to it. Be the master of that money. Make it serve your purpose and help you achieve what you are truly passionate about in your own life.

If you’re getting close to retirement and you only have one or two things you like to do outside of work, I have bad news: You’re probably going to be unhappy. Don’t blame me—it’s all in the data. Look at Illustrations 4.1 and 4.2.

What are you waiting for? Go get three to five core pursuits right now! I want you to test out three to five new things in your life. If you have zero when you retire, you’ll be in bad shape—no matter how much money you have.

Here are three easy ways to ensure you’re not moving toward a McMullen retirement:

    1. Get three to five core pursuits. I don’t really care what they are. I grew up with a father who thought golf was a ridiculous pastime, but making horseshoes for his Percheron named Buster so they would be ready for the next Civil War reenactment was okay. So what core pursuits you fall in love with doesn’t matter—as long as they mean the world to you. Some people live for golf, some Scottish dance, some biking in Tuscany, and some just love making horseshoes.

    2. Rock out. Music is one of those core pursuits that’s mildly undercover. It often gets missed in conversation because it can take on so many forms. But happy retirees love music. Sound a little strange? It did to me, too. But if you listen for it, you’ll realize how often music plays a role in these people’s lives. It manifests in different ways: The church choir. Teaching piano. Singing in the car like Jerry Maguire. Big concerts, little concerts. Jazz, rock, the symphony. Playing music—in bands, on the piano, or on the guitar at home. And yes, even karaoke. Happy retirees love moving and grooving!

    3. Be active and be social. After working with so many happy retirees, it is very clear to me that physical activity is an important ingredient in their happiness. Even if you don’t love the gym or you hate jogging, some form of exercise is critical. Regular exercise isn’t just great for you physically; it’s a huge boon mentally as well. Chalk it up to extra endorphins, if you want. Or maybe it gives you time to think about and work out life’s problems in your head. It could even be the fact that so much exercise-related activity is also very social—basketball leagues, softball leagues, water polo teams (a favorite at The Villages in Florida), exercise boot camps, running groups, cycling tour groups, you name it. Keep in mind that being active can serve as a social outlet, too.

Diversifying Your Core Pursuits

The number one core pursuit for happy retirees is volunteering. That’s no coincidence. These men and women feel like they are truly accomplishing something, and it gives them an immense sense of satisfaction—even euphoria. The happiest couples and individuals I work with beam from ear to ear when they talk about the charities they support.

The options for volunteering are endless. There are food banks, church volunteer programs, veteran organizations, wounded warrior programs, disabled groups, and alumni associations. Wherever and however you decide to pitch in, it’s important to volunteer. If you don’t already participate at your kid’s school, your church, or a community foundation, go find two to three places where you can give your time, effort, or money. That way you’ll never run the risk of being curmudgeonly Mac McMullen.

In addition to volunteering, the next three most popular core pursuits in the happy retiree camp include travel, spending time with grandkids and family, and golf—in that order. But those are far from the only pursuits that show up. It’s fascinating to me how diverse the world of retirees is when it comes to core pursuits. When I think of most of the happy men retirees I work with in Atlanta, they want to play golf and tennis and travel. I think that’s awesome for them, but you don’t need to have those specific activities as your core pursuits to be happy. You just have to have some things you love.

I already told you how Marilyn Noble does Scottish festivals and plays drums in the band, volunteers at the Pregnancy Aid Center, and does the newsletter for the St. Andrews Society. She also water-skis and Jet Skis up at Lake Fontana. Believe it or not, those are just a few of the core pursuits Marilyn enjoys.

I know happy retirees who build ham radios in their basement and sell them on the Internet. Others work part-time. Atlanta is the land of Home Depot, and I can’t tell you how many retirees I know who end up working there part-time. Their attitude is: “I used to go there all the time and shop, why not get paid to hang out?” They’ve taken a core pursuit and turned it into a productive way to enjoy retirement.

Do the Home Depot jobs pay minimum wage? Some of the jobs there are close—but my retirees aren’t doing it for the money. They’re doing it because they love tools, and plumbing, and HVAC, and lighting! You know those guys who really get a kick out of coming to your house and fixing something broken? That’s them! “Oh, your door fell off the cabinet? I know how to fix that. I’ll Gorilla Glue it, get a couple of vice grips, let ‘er bake overnight, and she’ll be good as new.”

There’s an air of productivity to the Home Depot crowd—a sense of pride in wearing the orange apron, as opposed to the Walmart blue. I actually hear people say “I don’t want to be a greeter at Walmart” as a euphemism for wanting to find an interesting core pursuit. It’s entered the American vernacular. So, they take off the blue and put on the orange. I’m certainly happy about it, because I need all the help I can get when it comes to home improvement and would be lost at Home Depot if it weren’t for all of those orange aprons.

There’s also an avid car culture—car shows, weekend car trips. There are wine connoisseurs and foodies. There’s the college football crowd, or as I call them, tailgaters! They set up the beer and barbeque every Saturday for three months, possibly longer if the Georgia Bulldogs are ranked in the top 10. In fact, the Bulldogs are even more popular than Atlanta’s professional football team, the Atlanta Falcons. My radio station carries college football and doesn’t even carry the Falcons. SEC football is king down south.

Church is huge in Atlanta. In fact, because it airs on Sunday morning, my radio show has a large number of people listening as they get ready for, commute to, or commute from church. They tell me, “Wes, I wish I could listen more but the pastor is gonna kill me if I don’t get out of my car and go inside.” From Lutherans, to Baptists, to Presbyterians, to Catholics, to Jews—people are passionate about church (or synagogue) here in the South.

The point I’m making is that the options are endless. You have so much to choose from. All that I’m asking is for you to look inside yourself, figure out what it is that gets your motor running, and find a way to make that a part of your retirement plan.

Don’t Be a Loner: A Vibrant Social Life Leads to Greater Happiness

Have you noticed how the happy retirees have core pursuits that are typically social in nature? The most popular activities of unhappy retirees are reading, hunting, writing, and fishing. There’s nothing wrong with any of those, but they are by and large solitary activities. There’s a time for solitude—but my survey shows that it rarely leads to happiness.

A core pursuit can be the mere act of being social. I like to go out on Friday nights. Whether it’s a date night with my wife or just having dinner with friends, it’s important to me. I’m very consistent with it. The sense of being social and communal is very important to my happiness, and whether you know it or not, it’s important to yours.

In The Blue Zones, author Dan Buettner discusses the propensity for community and its possible effect on lifespan. One of the cities Buettner cites as an example is Loma Linda, California. Located about 60 miles east of Los Angeles, Loma Linda houses roughly 9,000 Seventh-Day Adventists. Without going too much into the religion itself, Adventists place a strong emphasis on communal time—decompressing on the Sabbath, community potluck socials, and volunteering. Is it a coincidence that they have longer life spans than most people in America? Buettner says no, and I would agree.

Another example Buettner uses is the Greek island of Ikaria. Like Loma Linda, this region houses a cluster of residents whose life span far exceeds the world average. While studies have shown the increased health may have to do with drinking a certain type of boiled coffee, Buettner believes it’s more about the people they were drinking it with.¹ He observed that the people of Ikaria enjoy their coffee with others, and they let the visit linger in pleasant conversation.

I’m not making the case that longer life is solely a result of the strong sense of community, but it sure seems to play an important role. I don’t like using the word magical, but there is something about interacting with neighbors that seems to nourish the soul. Maybe it’s time to build yourself a front porch and invite some friends over. (Just remember to pay the contractor before you retire.)

Connecting with others, even in an impromptu setting, can make for a powerful sense of community. Maybe you run into your neighbors while you’re both taking the kids to school or bump into a friend while you’re out walking the dog. We can all agree these are pleasant, uplifting moments of connection (unless you’re feuding with your neighbor, of course). It turns out we’re not alone in this world, and that realization makes for a healthier, happier life.

Exercise Your Right to Be Healthy

Another hugely important area is exercise, as it leads to vitality and health. You didn’t buy this book for workout tips, but it’s a very important topic. It’s also part of why golf is such a popular core pursuit for retirees—it’s a bridge to the exercise. It provides retirees with a chance for some fresh air with other people, and a chance to challenge themselves to be better at something. You can exercise the mind and the body. You can compete with yourself. It’s a mixture of exercise, community, and self-improvement.

Golf is so popular that some people play it twice a week or more. In these cases, they have my blessing to count it as more than just one core pursuit. It’s one activity, but you can do it so much and so religiously that it can carry more weight.

Have you noticed how exercise tends to crop up as a core pursuit for happy retirees? The happiest people who call into my radio show or come into my office tend to be physically active. Dozens of my clients run triathlons. Some run full length, some run mini-triathlons, and some crank it all the way up to Ironman levels. Drive around cities like Atlanta or Denver or Los Angeles, and you’ll see bumper stickers that say “26.2” to signify the number of miles in a marathon. Or you’ll see “140.6,” which is the Ironman length.

Want to try some of the physical activities that the happiest retirees enjoy? Move your body and:

    • Walk

    • Jog

    • Hike

    • Bike

    • Play tennis

    • Do Pilates

    • Do yoga

    • Golf

    • Swim

    • Sign up for a charity walk or run (5k, 10k, etc.)

    • Take a spinning class

    • Join a boot camp

    • Join a gym

    • Train for a half-marathon/marathon/triathlon

    • Do CrossFit

    • Try Orangetheory Fitness

    • Take a Cardio Barre class

The key here is to be active and try something physical on a regular basis. It will make you feel better, live healthier, and lead to a better life.

I can assure you an overwhelming majority of happy retirees partake in activities such as these. One of the biggest 10k races in the world is the Peachtree Road Race in Atlanta. There is a whole community of people who do it. Tens of thousands of people run it—and that number includes more of my clients than you might think. Would they do it if it didn’t make them happy?