The complete retirement: when you stop working, have you thought about how you'll fill your days?(RETIREMENT PLANNING)(Departmen

SO MUCH OF WHAT WE DO IS ROUTINE. FOR MANY of us, each day starts with a jolting noise from an alarm clock, followed by the standard ritual of getting dressed for work as the local weather and traffic report plays in the background. And there is certainly nothing wrong with that; there's comfort in following a set schedule. But what happens when that routine disappears? Much of retirement planning is focused on building your nest egg--and tightly so. But many retirees haven't given enough thought to the other side of the equation. What do you want to do during your retirement? After all, golf isn't everyone's cup of tea.

"I'm planning to retire in the next year or two," says Howard Burrell, whose current schedule belies any intent to slow down. Five days a week, Burrell, 62, commutes two-and-a-half hours from his home in Glenwood, New Jersey, to Trenton, where he serves as an assistant director in the Department of Labor and Workforce Development. He and his wife, Reba, 61--an elementary school teacher--would both like to retire in the not-too-distant future.

Burrell says he's tossing around a few ideas for his retirement. Once his wife steps out of the classroom he might enter. "I want to teach, perhaps at a historically black college," he says. "As an alternative, I'd like to serve as an administrator in higher education, especially if I could be the president of a community college."

The bottom line, then, is that Burrell is not planning to spend his retirement on the couch or even whiling away time on leisure activities. He is looking forward to the "new retirement"--golden years that might be demanding but also rewarding in ways that go beyond a paycheck. And by no means is he an exception. Of the adults surveyed in the 2006 Merrill Lynch New Retirement Study, 71% said that their ideal retirement included work in some capacity.

With health advances, the average length of retirement is getting longer. Consider that black men who reach age 65 are expected to live another 15.2 years, up from 13.2 years in 1990. At the same time, the life expectancy for 65-year-old black women is another 18.6 years, up from 17.2 years in 1990, according to the National Center for Health Statistics. So, many people can look forward to a long retirement--too long, for some, to spend traveling or dining on early-bird specials.

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A NEW PLAN

To meet the needs of the legions of baby boomers that are starting to retire, various coaching and counseling services have arisen to help with planning. The North Carolina Center for Creative Retirement, a program of the University of North Carolina-Asheville (www.unca.edu/ncccr), was founded in 1988 to encourage seniors to remain active and share their expertise as vital members of their communities. Ronald Manheimer, executive director of the NCCCR, says pre-retirees and new retirees should ask themselves if they have a dream about what they will do next: launch a second career, travel extensively, move to a new community, pursue a new activity such as an artistic endeavor or a volunteer role, etc. "The next step is to take a 'field test' to see whether it's something you'd really like to do," says Manheimer. "Take a class like 'Life Drawing 101,' for instance. Interview the local coordinator of the volunteer center or do background interviews with HR directors of the types of companies where you might seek re-employment."

"I have not yet done any teaching to test the waters," says Burrell, but notes that he's in discussions to possibly teach an evening business or psychology course at Centenary College in Hackettstown, New Jersey, this fall. And just what are his credentials to stand in front of the classroom? Earlier in his career, Burrell spent more than 30 years with CYRO Industries, a producer of acrylic products, ultimately serving as its international sales manager. "I feel I'd be qualified to teach college-level business courses." Burrell also believes he can teach psychology courses, as he is now working on a Ph.D. dissertation in that field from California Coast University, a nationally accredited online degree program.

No matter what route he ultimately takes, when Burrell begins his job search, he knows where his focus will be. "Our two sons live in New Jersey and our daughter is in Virginia," he says. "We'll want to live somewhere not too far from our children and grandchildren." As for Reba, she says she'd like to do volunteer work with senior citizens, as well as spend time with their two grandchildren, "take care of my health, read, and relax." She says they've always spent time on separate activities as well as spending time together. "This pattern has worked for us for 41 years," she says, "so we won't change it now."

Even if the Burrells end up retiring in a high-cost area on the East Coast, finances may not be a strain. "I have my pension from my former employer and my military service will help me get another pension from the state of New Jersey," says Burrell. "My wife also will get a pension, and we'll both collect Social Security." The couple also owns two condo apartments besides their home and says that they have steadily contributed to their retirement plans as well, amassing a total of approximately $850,000. Estimating that their retirement income should be about 10% to 15% less than their current earnings, Burreli says they "should be financially comfortable as long as we're not wasteful with our money."

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A NEW BUSINESS

If there is one lesson to be learned about planning for a fulfilling retirement, it's that lessons can make a difference. Just as undergraduate and graduate education are vital for a successful career in your 20s and 30s, ongoing schooling can give you an edge when you're looking for post-retirement pursuits later in life.

For instance, Burrell enrolled in an online education program that offered enough flexibility to fit into his busy schedule and may enable him to teach psychology. In Latham, New York, Kweli Ya-Saleem earned the professional certification she needed for her dream retirement--and she's glad she got it as soon as she did.

"I was in management, but I was disillusioned with the corporate life," says Ya-Saleem, 52. "I wanted to get in my 20 years with the company so I'd get a pension, but the company offered me a package I couldn't refuse, after 16 years." She had been a quality control manager at Verizon when she was offered a package that included a one-time severance payout as well as a pension. "My plan was to stay five more years past the date I retired, but sometimes you see the handwriting on the wall and you know you need to take a leap of faith," says Ya-Saleem. "I decided, wisely, I believe, to seize the moment and leave early with something, rather than wait to be 'involuntarily downsized' and leave with nothing." The single mother of one son and grandmother of four took the risk.

Fortunately, Ya-Saleem had been anticipating her post-retirement occupation. "It took me two years, going nights and weekends, to get my certificate in massage therapy at the Center for Natural Wellness School of Massage Therapy in Albany," she says. "I took classes in anatomy, physiology, kinesiology, and other sciences. After graduating in 2004, I passed my state board exam and got my license as a massage therapist."

Initially, Ya-Saleem worked in spas and salons. She also tried working with a partner but soon discovered that she wanted to strike out on her own. "When the chance came to buy an existing practice," she says, "I took a loan secured by my home. I've retained many of the clients from that practice and I'm working my way to where I want to be, which is doing three to five massages every day, at $65 an hour."

As the proprietor of Alternative Health Services, Ya-Saleem says she's doing what she's passionate about: "Helping people to feel better and get better." Ya-Saleem is not only passionate but also making a good start in her own business, according to her financial adviser, Tracy Brown of William Tell Financial Services in Latham. "Too often," says Brown, "someone will retire and think, 'Everyone says I cook well, so I'm going to start a restaurant.' They have no idea what it takes to run a business so they get discouraged and walk away, losing all the money they've invested."

On the other hand, Ya-Saleem had a viable plan. She obtained her license, bought an existing business, retained clients, and is actively marketing to attract new ones. "Even so," says Brown, "we have kept some money to form a safety net, in case things turn down. Many people neglect to do so when they start a business after retiring." Even with a solid business plan and a growing client base, Ya-Saleem needs more cash for living expenses, according to Brown. Her solution: tap Ya-Saleem's IRA.

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Distributions from an IRA are taxable and also subject to a 10% penalty if made before age 59 1/2. However, Section 72(t) of the tax code permits some early distributions without the 10% penalty. To qualify, money must be withdrawn on a schedule that's based upon your life expectancy and the withdrawals must continue for five years or until age 59 1/2, whichever comes later. Calculations can be complex, but a financial adviser should be able to help you. By using this tactic, Ya-Saleem is pulling out about $10,000 from her IRA each year, which is subject to income tax but not the 10% penalty. For more information on 72(t) withdrawals, visit www.72t.net.

"After having this experience and making the mistakes I have made," says Ya-Saleem, "I would plan on a safety net of at least two years of living expenses." Brown says that Ya-Saleem's safety net is much larger than that because she maintains a second IRA account that is not being tapped.