WHEN CAN YOU RETIRE?
The answer is…when you have enough money to meet your financial life needs for as long as you live. Now, let’s determine how long you’ll live, what your expenses are today, what they’ll be tomorrow, and then let’s look at your ability to fund your lifestyle.
SOUND SIMPLE? DEFINITELY NOT.
There’s a lot of audacity to taking on this challenge. The thought of trying to figure out whether or not you can leave your full-time profession and live your dream life in retirement stops many from actually doing what is necessary in the present, and that’s planning. Financial Planning lays the foundation for your ability to have “choice” in retirement. Choice in how you live, where you live and flexibilities surrounding both how and where.
It truly is a bit of courage that brings our clients to the table to work on a financial plan for a financially sustainable, as well as, healthful lifestyle. We’re here with some straight-forward thinking that will get you on the right path for knowing “when” you can retire.
You see, we’ve found that it’s a lot about “what” retirement means to you in order to figure out “when” you can retire.
Here are a few tips to help you begin to answer the question “When Can I Retire?” We believe that once you know these answers, you’ll be better able to actually plan for your retirement.
- Do you love what you do so much that you plan to work part-time at it in your next phase?
- Are you the type of person that desires to quit working entirely and just plan to relax, perhaps travel, start a hobby that has a cost associated with it in retirement?
- Do you have dreams of starting your own business in retirement or begin a different, if less profitable, job? Perhaps something you’re passionate about that you aren’t doing today?
- What expenses will you no longer have in retirement…mortgage? No longer need a 2nd car?
- How much do you spend annually today?
- Any specific health concerns for you or a close family member?
- Do you save and invest regularly? If so, do you know if your savings and investments are enough for your next phase?
Once you’ve answered these questions, we feel, you’re off to a great start in finding the peace of mind that knowing what lies ahead for your next phase can bring. Step 2 is getting a financial planning partner. A financial planning partner can put it all together to document a plan for your future.