Take Me Out Coach
“A bird sitting on a tree is never afraid of the branch breaking, because its trust is not on the branch, but on its own wings.”
Charlie Wardle
Question: How do I know what is the right age to retire?
Answer: Although age is just a number, when it comes to retirement it definitely matters. Anything before age 60 is considered “early” retirement. The COVID-19 pandemic led to an increase in “early” retirement among adults aged fifty-five and older. A recent survey by the Employee Benefit Research Institute found that only 11% of workers currently plan to retire before the age of sixty. With proper preparation, you can create a retirement plan to provide financial resources and the freedom to pursue your passions, whether you flip the switch at 65, 60 or sooner.
Game Plan
Our grandson is captain of his high school baseball time. It’s a treat hearing him talk about pregame preparation with the team. (Yes, I’m a proud Yaya!) Sports performance is measured and evaluated, often with the help of a captain or coach. The same holds true with financial decisions. A December 2023 survey by Bankrate shows that 57% of Americans sought out financial advice yet only 35% of those people asked financial professionals for information. The most popular source of information was family and friends at 47%. Going it alone before turning off the income spicket could be risky business without defined measurable goals.
Stary by identifying cash flow needs. Next, understand assets and liabilities to create a plan based on life expectancy and any unique circumstances. Your Certified Financial Planner™ Professional can help you understand Social Security income, pensions, and investments to help ensure you’re on track to meet your retirement goals.
Motel Six or The Ritz?
Getting clear on the kind of retirement you want helps create the groundwork for aligning the plan with your goals. Do you envision traveling, pursuing hobbies, or spending time with family? If so, you may need to have more set aside than someone with a more modest lifestyle in mind.
Gear up emotionally
Retirement readiness includes evaluating finances and an honest assessment of emotional readiness to leave the workforce. Retirement can be emotional, particularly for those who’ve spent their lifetimes focused on careers or building a business. Consider how you’ll adjust, find fulfillment, and fill your time. Will you miss the social interaction and sense of purpose that comes with work? What activities will you pursue?
Find a sense of purpose
Retirement provides the freedom to explore new interests, take risks and make a difference in the world. If you’re retiring early, there’s more opportunities and time to try new things. By focusing on what matters most to you, you can create a retirement that’s fulfilling and meaningful which is important for overall happiness and well-being.
Prioritize your well-being
Being proactive with your health through regular exercise, wise eating habits and getting enough sleep can help prevent the need for costly medical interventions down the road. Retiring early may give you more time to work with your healthcare providers and create a plan to improve or maintain your health.
While physical health is important, finding a creative outlet can help you support your mental health as well. Consider activities that you don’t have time or energy for while working full-time. What do you wish you could do during your day?
Plan for healthcare costs
Once you reach 65, Medicare becomes available. If you retire sooner, healthcare insurance to tide you over to sixty-five may be quite expensive. Healthcare options for early retirees include COBRA, government health insurance marketplace plans, private policies and keeping some form of employment that offers health insurance. There are services to assist with finding a health insurance plan that is right for you. Each option comes with its own costs and benefits, so it’s essential to weigh your options carefully. For example, if you opt for a private policy, you may have more from which to choose, but the costs can be high. It’s also important to consider the potential healthcare costs or insurance options associated with caring for an ill spouse or adult children.
Opportunities
By taking time to rediscover yourself, assess your situation and plan accordingly, you can retire on your own terms whether you’re at retirement age or not and feel confident doing so. When we retire from work, we don’t retire from life, we’re simply transitioning to another phase with opportunities to redefine our purpose, find causes that light you up and embark on adventures that remind us that age is indeed just a number. Putting the pieces of your puzzle together may be easier to do if you ask for the help of a Certified Financial Planner™ Professional. Stay focused and plan accordingly.
Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. The opinions expressed are those of the writer as of March 9, 2024, but not necessarily those of Raymond James & Associates, and subject to change at any time based on market conditions and other factors. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Investing involves risk and you may incur a profit or loss regardless of strategy selected, including asset allocation and diversification.
“Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, Certified Financial Planner™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements.” This article provided by Darcie Guerin, CFP®, First Vice President, Investments & Branch Manager of Raymond James & Associates, Inc. Member New York Stock Exchange/SIPC 606 Bald Eagle Dr. Suite 401, Marco Island, FL 34145. She may be reached at (239)389-1041, email darcie.guerin@raymondjames.com Website: www.raymondjames.com/Darcie
