David John MarottaDavid John Marotta is the President of Marotta Wealth Management, a fee-only financial planning and asset management firm in Charlottesville, Virginia. He is an oft-quoted writer and speaker on financial matters and his weekly financial column can be found at www.eMarotta.com
Host: What is important about a social network during retirement?
David Marotta: Studies have found that people who have a good social network are satisfied with life, they are happy with life, they keep their minds and their bodies more active. The problem as you approach retirement is that your social network during retirement is going to shrink. The average social networking retirement is about nine-and-a-half people, I am not sure, who the half person is, but the average social network will end up shrinking.
So, as you approach retirement, one thing we recommend is to draw concentric circles and put yourself in the middle and list the ten people who are the closest to you. Now, it s important these are not family members because family members are very important, but they do not validate your sort of, self-worth, because a family member is under obligation to love you and can take care of you and like you. They don t end up having the same satisfaction that just friends are who choose to be with you.
So, put the ten closest friends that you have in concentric circles and then cross out all the ones that you know through your work. That is the damage to your social network, if you retire suddenly and cease working completely. That will end up having a disastrous impact on your health, wellbeing, finances and longevity.