If you are heading into retirement you probably have a bucket list that you want to work on. While just about everyone has heard of a bucket list, not many are familiar with the concept of reverse bucket lists.
On this episode of Retirement Starts Today, we’ll explore this concept by referring to an article from Jeff Stein at Inc.com. You’ll learn how a reverse bucket list could help you manage your wants versus your needs.
Stick around for the listener questions segment to hear which assets to look at when doing a Roth conversion. You’ll also hear a question from Paul about the logistics of retirement withdrawals.
Outline of This Episode
- [1:42] Using reverse bucket lists to prioritize
- [5:20] What assets to use at when looking at Roth conversions
- [9:48] The logistics of retirement withdrawals
- [12:48] Make sure the money comes out of the right accounts
Why you should get over your bucket list
This week’s retirement headline is titled Forget Bucket Lists. The Formula for Satisfaction Is Actually the Opposite, Says Harvard Professor. This article introduces a theory created by Arthur Brooks, a think tank CEO and Harvard Professor, which requires us to rethink bucket lists. Mr. Brooks insists that we should get over our obsession with bucket lists and instead focus on reverse bucket lists.
The article explains that when we fulfill the dreams on our bucket lists we are left unsatisfied since it is human nature to always dream for more. Brooks created his own satisfaction formula to counter the common refrain that satisfaction = getting what you want. Since humans never stop wanting things, people are never really satisfied.
A new formula for measuring satisfaction
Brooks’ revised formula is satisfaction = what you have/what you want. This formula helps people recognize what they already have and pare down their list of wants. Getting rid of things on your bucket list can keep you happier in the present.
The author of the article then discusses how creating a parallel list of things that you could give could help promote your happiness since giving is a way to boost mental and physical health. By giving you are able to step out of your own world by elevating the life of someone else.
What do you think of this idea? Would it help you appreciate what you have and focus on staying happy in the present? How could you use this idea to reframe your plans for retirement?
Answering your listener questions
Linda is curious about how to decide which assets to use when doing Roth conversions. In the end, it doesn’t really matter which assets you choose. Listen in to hear why.
Paul is considering his ratio of stocks to bonds to cash and would like to know the best way to use his money. Paul has a great plan to keep 3 years of cash on hand, but his stock to bond ratio may be a bit conservative. Learn how this could put him at risk by listening to the listener questions segment.
Resources & People Mentioned
- Inc.com article
- Podcast – Optimism with Simon Sinek and Arthur Brooks
- An online risk tolerance questionnaire
Connect with Benjamin Brandt
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