What is your end game? Your next act? What do you intend to do when you are finally done doing what you’re currently doing? Retire?
It’s your “third act”.
If you’re like me, it’s difficult to think of it as a third (or last) act. After all, we’re doing great right now: we’re contributing to a retirement fund and this is our life and we love it. Why do we need to think of anything after this? There isn’t anything after this. Is there?
Well, maybe so — if you plan for it.
There are so many reasons to be planning your third act. The biggest one is being able to afford to do what you’ve been planning on once you’re no longer the business owner. This is a different perspective than the typical financial planning question of how much do you want to retire on. Let’s use an example.
Let’s say, you desire to buy a full-size motor home to drive around the country seeing all the national parks and monuments that you’ve always wanted to visit. You’re planning on spending three to six months every year on the road doing this. Have you done the math on this? Have you figured out the financing on this? You may have figured your financial plan based on what it will take to maintain your life style – or maybe even lowered that so you can downsize. But what about this motor home thing? This is in addition to your normal life-style costs. You must add this to the total and when you do, you’ve got to be targeting that new number as your new goal.
No matter what you want to do if it’s anything other than sitting around the house watching TV all day, it’s going to be “plus” your expected normal living expenses. So, calculate it and begin now planning on it. If you have a qualified financial planner, they can assist you with this (If you don’t have someone with this capability, we can recommend one). Once you have this revised figure, now you can begin to look at what it’s going to take to achieve that number.
So, what’s going to be your third act? What’s going to keep you living? Literally. If you intend to exit your company vertically at some point in the future, what will be your next great adventure?
I’d like to hear your next story.
Where will the resources come from for that motorhome? Take this quick quiz first.
*photos courtesy of Junior Moran and Tyler Callahan