How Can I Determine If I Should Retire Early? Part 1

 In Ozarks Live, Financial Planning

How Can I Determine If I Should Retire Early?  Part 1

Everyone’s dream…to work, then to retire and play and travel and do stuff we want!  This post is going to review the 3 of 6 top things to consider before you choose your retirement date.

  1. The emotional stress of making the decision to retire early.   Preparing the mind to have a sense of worth without having a 9-5 job.  Have a plan or a purpose for your new life.   Finding a new hobby is easier said than done.  A lot of retirees find a paycheck they LOVE instead of a paycheck they NEED.   A Part-time job dealing with something you’re interested in.  A tackle shop, a golf course, a retail store, babysitting grand kids or a charity/ volunteer opportunity- doing something to keep their mind active and a sense of worth.
  2. Budget.  Six months before retirement establish retirement budget.  Try to live within the budget of what your new retirement income will be, not your current income.  ‘Practice’ for retirement. Dipping into savings, or using a credit card may be a sign to re-evaluate your situation and budget.  Keep in mind the cost of living is going up as we age and your spouse or family may expect to continue their ‘standard of living’.
  3. Health Insurance.  Medicare doesn’t kick in until age 65, so the need for affordable healthcare from that point in life until you reach Medicare age. Incorporate Health Insurance into your budget.  It may be the largest draw against the fixed income.  Once you retire, you are voluntarily unemployed and on a fixed income.  In the current environment it is hard to tell what to budget for increasing healthcare costs.  Take that risk into consideration before you retire.

The main thing a family needs to consider is sustainable monthly income that will provide a standard of living that is acceptable to you and your family.  This standard needs to be something that you will be happy with for the rest of your life.


In the next episode Bruce will cover the last 3 topics to consider before you retire.

Catch Bruce Porter’s show Dollars & $ense Tuesdays at 3pm on KOLR’s Ozarks Live

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We are an independent firm helping individuals create retirement strategies using a variety of insurance and investment products to custom suit their needs and objectives.  This material is intended to provide general information to help you understand basic financial planning strategies and should not be construed as financial advice.  All investments are subject to risk including the potential loss of principal.  No investment strategy can guarantee a profit or protect against loss in periods of declining values.  

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions.  

We are not permitted to offer, and no statement contained herein shall constitute, tax or legal advice.  Individuals are encouraged to consult with a qualified professional before making any decisions about their personal situation.  Our firm is not affiliated with the U. S. government or any governmental agency.  Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM).  AEWM and The Resource Center are not affiliated companies. AW02181773

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