Financially Speaking: Real IDs, Real Deadlines, Real Lessons
Where were you on May 7? It’s not a date that lives in infamy, but for many this year, it was one of frustration. May 7 marked the day the REAL ID requirement went into effect if you wanted to fly or enter any federal government building. It may feel like the deadline arrived suddenly, but the REAL ID Act was actually passed into law by Congress in 2005. It established standards for issuing identification, such as driver’s licenses or state-issued ID cards. The law was a response to the attacks on Sept. 11, 2001, a date that truly lives in infamy. We simply call it 9/11. Never forget.
In an article published by Larry Higgs on NJ.com on June 4, 2019, it was reported that New Jersey was one of six states that had yet to implement the federal REAL ID standards. Pennsylvania began issuing REAL IDs on March 2, 2019. In fact, many states started complying with the act as early as 2012.
Still, Newsweek reported that as of April 9, 2025, around 44% of Americans had yet to obtain a REAL ID. How did we fare in April? According to CBSNews.com, New Jersey had the lowest compliance rate in the nation. Only 17% of issued IDs were REAL IDs. Pennsylvania didn’t do much better, with a 26% compliance rate. Think about that. We’ve known for nearly 20 years this day was coming. It seems we’re a nation of procrastinators – well, not all states. Texas, Mississippi, Hawaii, and Utah boast compliance rates of 96% or higher.
If you were among the 83% of New Jerseyans who hadn’t applied for a REAL ID, excuse me for chuckling as I watched the news on May 7. Every major news outlet covered it as the headline story. Reporters interviewed people standing in lines that wrapped around the block outside REAL ID offices. One woman said she told her boss she’d be a little late for work, just stopping off to get her new ID. She was stunned to learn she’d be waiting three to four hours. Another gentleman that was interviewed was astonished at how long he was going to have to wait. That reaction was consistent across the board.
It’s astounding how surprised people were by the long lines. Maybe a few lyrics from Green Day’s “Good Riddance (Time of Your Life),” released in 1997, would help those procrastinators:
“Another turning point, a fork stuck in the road
Time grabs you by the wrist, directs you where to go
So make the best of this test, and don’t ask why
It’s not a question, but a lesson learned in time.”
If you were one of those who waited until the last minute, maybe this was your “fork stuck in the road.” From the moment we begin working, our thoughts may eventually turn to retirement. If you began your career right out of high school or college, you’ve got roughly 43 to 47 years to plan for it. Retirement planning is not something that you want to put off. Hopefully, the REAL ID fiasco can serve as inspiration for those who haven’t yet started.
Over the course of my career, I’ve seen a lot, but not everything. Years ago, I met a couple – he was a professional, she was a homemaker. He was self-employed, earning more than $250,000 annually. They came to our office to discuss retirement planning. Both were just over 60. Given their age and income, I assumed they had built substantial assets.
They told me how they had enjoyed life – lavish vacations (not just weekends at the shore), luxury cars, dining out nearly every night. They then shared their retirement dreams and handed me two investment account statements. I asked for the rest of their asset information. “This is it,” he said. I was dumbfounded. Their total assets were under $200,000, which was less than one year’s income.
When I asked if they expected any inheritance, they said no. Their goal had been to enjoy the good times while they were young and healthy, and in that, they succeeded. Over the years, they’d seen friends retire with substantial savings but be unable to enjoy it due to health issues. That fear triggered their “live for today” philosophy in their 30s. They assumed the future would take care of itself.
But the future was now.
They were stunned when I told them retirement at 65 wasn’t possible, not with so few assets. Yes, he would receive Social Security, and she would receive around 50% of his benefit, but that combined total would be less than 25% of the income they had been living on.
They reminded me of a quote often attributed to Ben Franklin: “If you fail to plan, you are planning to fail.”
Regardless of your age, now is the time to take a hard look at your retirement plan. Are you on track? Have you taken advantage of your employer-sponsored retirement plan? If you’re under 50, you can contribute up to $23,500. If you’re 50 or older, that amount increases to $31,000 (as of current contribution limits). It’s wiser to live within your means than to spend all your income “living for today.”
Be proactive. Take control of your financial life. At the very least, use an online retirement calculator to assess your current position. Better yet, meet with a fee-based financial planner to start or fine-tune your retirement plan.
Kevin O’Leary (“Mr. Wonderful” from “Shark Tank”) often says that financial problems, not infidelity, are the top cause of divorce. He recommends getting married once and working hard to maintain that relationship – because divorce can be a huge financial setback. I wholeheartedly agree.
So, stay focused on your financial plan. If you’re married, don’t let finances be the cause of divorce. Develop that financial plan together, and stick to it. That may help you enjoy not just a comfortable retirement, but a truly wonderful life.
Now, stop procrastinating. Grab your chair, a good book, and your favorite beverage, and head to the beach. Don’t forget the sunscreen.
Fred Dunbar, CLU®, ChFC®, RFC®, AIF®, is the former President of Planning Directions, Inc., a registered investment adviser, and Common Cents Planning, Inc.. Securities are offered through Commonwealth
Financial Network®, member FINRA/SIPC. Fred may be contacted at 800-647-0762, by e-mail at
freddunbar@commoncentsplanning.com or by mail at 239 Baltimore Pike, Glen Mills, PA, 19342.
Advisory services offered through Planning Directions, Inc., a Registered Investment Adviser, are separate and unrelated to Commonwealth.
This commentary is meant for general informational purposes only and is not intended to be a substitute for professional financial, tax or legal advice. Investing involves risks including the potential loss of principal. Past performance is no guarantee of future results.
