Many find fulfillment in their work and plan to continue their careers well into their 70s and even beyond. After spending decades in the workforce, others eagerly anticipate retirement, dreaming of the day they can leave the office and the working world behind.

Retirement represents a significant transition, a milestone marking the close of one chapter and the exciting start of another. It is essential to recognize the advantages that we often take for granted or overlook, such as daily structure, routine, a sense of self-worth, and the friendships that develop along the way.

While we set goals for our careers, the businesses we run, or the companies we built from the ground up, many are unprepared for the lack of structure, the dissolution of relationships, and the new environment they will encounter after bidding farewell to their workplace.

You have financial security—a result of careful planning. But as you close one chapter of your life and begin another, the question remains: Are you prepared for the new life that awaits you?

A tale of two retirees

“Tom” spent more than 35 years in the oil and gas industry and human resources for a large healthcare organization. He retired at the age of 61. Today, he is active in the community, can often be found on the golf course, and volunteers in various ways, including at a local blood bank.

Additionally, he maintains his fitness, visits family in another state, travels with his wife, and stays busy pursuing activities he enjoys.

Thoughtful financial planning, combined with an outline that guided him after leaving the workforce, has allowed Tom to enjoy retirement on his terms.

“Larry,” in contrast, spent nearly 40 years in the workforce, with about half of that time at a prominent financial services firm. He now operates an Airbnb business from his home and rents out his RV.

While he loves to travel, Larry occasionally misses his profession’s routine and his colleagues’ camaraderie. He is often surprised by the abundance of free time he has.

Emulating Tom’s success

When you were in school, did you eagerly anticipate graduation so you could enter the workforce? Some students move effortlessly from academics to full-time employment, while others struggle with the transition as they trade the classroom for the workforce.

Ask any student. If they are honest, most will concede there is an adjustment.

Today, you may be preparing for another substantial adjustment—leaping from full-time employment into the world of retirement.

For many, this shift may bring forth unexpected surprises. The lack of identity, status, daily routines, and goals can hurt self-esteem, leave you feeling directionless and even contribute to depression.

If you aren’t careful, you may find yourself transitioning from a structured environment to one of excessive freedom, resulting in too much time and not enough activities to fill your day.

Extended idle periods are not the type of freedom envisioned when dreaming of retirement.

It’s easy to fall into that trap, but here’s how you can avoid it.

Staying active, fulfilled, and engaged

Extensive evidence supports the relationship between longevity and social connections, and the importance of maintaining physical and mental activity during retirement. What specific actions will you take each day to address these needs?

When asked about retirement plans, many often respond with common answers such as “spending time with grandchildren” or “taking vacations.”

Traveling is exciting, and spending quality time with the grandkids always brings joy. However, what else is available between travel adventures and the joy of being a grandpa or grandma?

Those who flourish in retirement are engaged spiritually, mentally, and physically.

Consider setting new objectives and revisiting interests and passions that you have held for many years, even decades, but haven’t had the opportunity to nurture and transform into hobbies and activities simply due to time constraints.

Begin by creating a daily routine that incorporates time for your interests and hobbies that you enjoy, and keep your mind sharp. If you don’t exercise regularly, consult your doctor and develop a plan to stay active.

Local community centers often offer retirement planning assistance, which can also be a great way to connect with others.

Ideas to spark inspiration

Perhaps you can ease into retirement by working part-time, allowing you to stay connected with your profession while enjoying additional freedom.

Today, about 25% of retirees engage in part-time work, while 73% of pre-retirees expect to work after officially retiring, according to the Greenwald Research 2023 Retirement Confidence Survey. Retirement is an attractive option for many. Others would prefer a hybrid option: partial retirement while keeping one foot in the workforce.

Pursue activities you love or explore something new. Have you ever considered:

• Learning a new language?
• Playing a musical instrument or improving your singing abilities?
• Taking dance lessons or enhancing your photography skills?

• Have you considered art and painting?

Did you know that former President George W. Bush took art lessons about four years after leaving the White House? That’s right. The 43rd president is an artist.

Other ideas:

• Volunteer for causes that spark your interest. You might consider Volunteer Match, which helps connect volunteers with various organizations.
• Join a senior-friendly travel group to safely and enjoyably explore destinations near and far. These groups can assist with planning and provide companionship on your journeys.

Final thoughts

We hope to equip you with inspiring ideas and practical steps to help you enjoy your retirement. Developing a comprehensive plan enhances the likelihood of a smooth transition, setting the stage for a fulfilling new chapter in your life.

Tariff talk dominates

Stocks began the month on a steep downward trajectory, experiencing losses reminiscent of the early pandemic lockdowns. However, by the end of the month, shares had managed to erase most of the early losses.

What happened?

Two primary events dominated the conversation during the month. First, the imposition of ‘reciprocal tariffs on April 2, and second, the president’s threat to fire Fed chief Jerome Powell one year before his term expires.

Referred to as “Liberation Day,” President Trump unveiled tariffs that far exceeded investor expectations. As reported by Bloomberg, these tariffs marked the highest levels imposed in more than a century.

While the tariffs may simply serve as a negotiating tactic, the resulting two-day selloff wiped 10.5% off the S&P 500 Index, according to MarketWatch data. This significant drop underscored investor worries that the U.S. economy might be in danger of entering a recession.

It was the perfect storm: falling stock prices, falling bond prices, and a lower dollar brought on by fears that extremely high barriers to trade could raise inflation, disrupt global trade, and possibly lead to a recession.

The adverse response in the financial market prompted the president to postpone reciprocal tariffs for 90 days, as he aimed to negotiate new trade agreements. He subsequently stated that he is willing to consider extending the initial delay.

According to Bloomberg News, the delay fueled the third-largest daily increase in the S&P 500 Index since the end of World War II.

Replacing the Fed chief

Trump has never been shy about expressing his displeasure with Fed chief Powell. On various occasions, he has publicly pushed Powell to reduce the fed funds rate. It’s not as if prior presidents haven’t pressured the Fed on rates, as former Fed Chair Alan Greenspan said in a 2018 CNBC interview, but it is usually done behind closed doors.

But later in the month, Trump upped the ante, threatening to fire Powell in a tweet on his social media site.

Can the president dismiss the chair of the Federal Reserve? Many legal experts believe he lacks the power to do so without cause. Nevertheless, entering this uncertain legal territory could lead to a swift market response, which encouraged the president to retract his threat to remove Powell.

Why do U.S. and global investors prize an independent Federal Reserve?

Although the Fed does not operate in a political vacuum, “A politicized central bank opens the door to higher inflation, higher interest rates (bond yields), and a loss of confidence in the American financial system,” Morningstar said in a late-April analysis.

“If the U.S. financial and political system is perceived as unstable, foreign investors may demand a higher return on their money to compensate for those risks,” the firm added.

In addition, many investors fear that a highly politicized Fed would maintain a low fed funds rate, which they worry could lead to a lasting rise in inflation and elevated bond yields. This concern is not limited to just one political party.

With the exception of China, the worst of the tariffs are on hold, and Powell’s job appears safe. Subsequently, investors cautiously nibbled on beaten-down stocks, erasing most of April’s early losses.

Source: Wall Street Journal, MSCI.com, Bloomberg, MarketWatch
MTD returns: March 31, 2025 – April 30, 2025
YTD returns: December 31, 2024 – April 30, 2025
**in US dollars

Bottom line

First quarter earnings have been exceeding expectations, according to LSEG. Coupled with the president’s lighter approach to trade and easing of China trade tensions, markets calmed considerably by the end of April.

Yet, a weak first-quarter Gross Domestic Product suggests the economy is slowing, and the possibility of a recession cannot be discounted.

When market volatility increases, we continue to suggest the approaches we have discussed in the past.

Keep your investments diversified, be aware of your risk tolerance during market downturns, concentrate on your long-term objectives, and refrain from making decisions based solely on the unavoidable fluctuations in market activity.

I trust this review has been informative.

If you have any concerns or would simply like to talk, please contact me or any team member.

Bruce Elfenbein

Certified Financial Fiduciary ®️