5 Signs You May Not Be Ready To Retire
Many of our clients that were thinking of retiring at a particular age have been reaching out to see if an earlier retirement is possible.
It seems the common theme was, that after a year of COVID, folks are rethinking what they want their lives to look like going forward.
For some, this is an easy exercise. We look at their financial plan, make some adjustments based on their new goals, and see if it is possible. If it is, great we start the process. If not, we look at some creative solutions to help get them closer.
Here are some things to ask yourself if you are nearing retirement:
1. Will I have enough resources to fund a potential 30+ year retirement?
In our financial plans, we run these numbers all the time so it is pretty second nature for us. We usually add in some "bad stuff" happening like unexpected expenses along with one's goals of things like travel, paying for a wedding, a new car etc.
Making sure the coordination of pensions, Social Security, and investment accounts are considered and the optimal time to begin is key.
If these numbers work, this is the first hurdle you have cleared. Not sure? We are here to help you figure it out.
2. Your financial house is a bit messy
Maybe you don't know what you have for assets or you aren't sure if you have certain benefits at work that will provide income or help with ongoing expenses. Maybe you are not sure where the money goes each month. Again we can help you figure all of that out.
3. You have a ton of debt
There is what we call "good debt" and "bed debt". Bad debt is those high interest credit cards or other consumer loans that cost a fortune. A "good debt" would be something like a mortgage. Getting a handle on whether carrying certain debts into retirement is something you should think about.
4. You love your job
This is an important thing to consider as going from working in a job you love to not working and having nowhere to go each day is a big change.
Consider doing what you love but maybe on a smaller scale and for yourself. Or, consider another part time gig in something of interest so the shock of not working isn't as jarring.
5. Going it alone
Like any major financial decision, going it alone is not the best choice. Seek the guidance of a Certified Financial Planner™ practitioner (CFP®) that has decades of experience in helping folks like you. There is way too much at stake.
Any questions, we are here to help.
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All the best.
Rick Fingerman, CFP®, CDFA™, CCPS®
Financial Planning Solutions, LLC (FPS) is a Registered Investment Advisor. Financial Planning Solutions, LLC (FPS) provides this blog for informational and educational purposes only. Nothing in this blog should be considered investment, tax, or legal advice. FPS only renders personalized advice to each client. Information herein includes opinions and source information that is believed to be reliable. However, such information may not be independently verified by FPS. Please see important disclosures link at the bottom of this page.