Have you ever heard of FORO? Unlike its more famous cousin FOMO (Fear of Missing Out), FORO stands for Fear of Running Out – a common anxiety among retirees that can significantly impact their quality of life.
The FORO Phenomenon
Recently, I met Mark and Susan, a newly-retired couple grappling with FORO. Despite years of diligent saving and responsible financial management, they found themselves unable to enjoy their hard-earned retirement. The fear of depleting their savings had left them feeling vulnerable and apprehensive about the future.
As a financial planner with over two decades of experience, I’ve encountered this situation before. Unfortunately, it’s becoming increasingly common. Mark and Susan’s story illustrates how FORO can transform retirement from a well-deserved period of relaxation and enjoyment into a time of stress and self-denial.
A 5-Step Strategy to Overcome FORO
The key to conquering FORO lies in developing a well-structured financial plan. Here’s the 5-step strategy I use to help clients like Mark and Susan regain confidence in their financial future:
- Comprehensive Financial Assessment: We begin by thoroughly evaluating your current financial position, including superannuation, savings, investments, and social security entitlements. This assessment provides a clear picture of your financial standing and future cash flow projections.
- Tailored Retirement Strategy: Together, we identify essential living expenses and discretionary spending, allocating funds to balance financial security with lifestyle goals. We then design a retirement investment portfolio with a sustainable withdrawal rate to support your plans.
- Emergency Fund Establishment: To address the ‘what if’ scenarios that often fuel FORO, we incorporate a contingency fund into your portfolio. This buffer ensures that unexpected expenses won’t derail your retirement strategy, providing peace of mind.
- Early Retirement Enjoyment: Many retirees, like Mark and Susan, hesitate to spend in their early retirement years due to FORO. We emphasise the importance of engaging in hobbies, travel, and social activities for mental well-being, encouraging sensible spending while you’re fit and energetic.
- Regular Financial Reviews: Retirement planning is an ongoing process, not a one-time event. We commit to regular reviews of your financial position, monitoring spending and investment performance, and making necessary adjustments to keep you in control of your retirement plan.
From FORO to FOMO: A Success Story
The transformation in Mark and Susan’s outlook was remarkable. By implementing this strategy, they moved from a state of constant worry to one of excitement and anticipation. Recently, they shared that they had booked a Pacific cruise – a significant item crossed off their bucket list.
Their parting words summed up the journey perfectly: “We’ve turned FORO into FOMO and are now living our best lives!” Moments like these remind me why I’m passionate about financial planning.
Remember, retirement should be a time to savour life’s pleasures, not a period of constant financial anxiety. With proper planning and guidance, you can overcome FORO and embrace the retirement you’ve always dreamed of.
Are you ready to transform your retirement outlook? Let’s work together to create a financial plan that allows you to enjoy your golden years with confidence and peace of mind.
