How Can I Determine If I Should Retire Early? Part 2

 In Financial Planning, Ozarks Live

How Can I Determine If I Should Retire Early? Part 2

“I wanna retire early, not sure if I can.” “What should I be thinking about.”  This is part 2 of our series.

To recap:

  1. Emotional Stress- The emotional thoughts of making the voluntary decision to become unemployed.
  2. Budget- Can you live on your new fixed income (retirement budget)?   Falling back on savings or credit cards may be a signal to continue employment.
  3. Affording Healthcare- Paying for healthcare until you are eligible for Medicare.

The next 3 things to think about before you retire are:

4. Family or children.  You may want to retire early but your kids are either just finishing up a degree or still in school or still living at home.  Having them as a dependent is going to cost you.  Having to help out family members is an extra expense that will cut into your early retirement.

5. If you have debt it may not be a good idea to retire early.  Debt is nothing you want to carry into retirement. If you don’t have your debt paid off, or have a very hard plan on exactly when you’re gonna be out of that sooner than later, you’re probably not ready to retire.  Most people want to retire debt-free but each persons situation is different.  Having a home paid for is ideal, it will free up a big chunk of income.

6. Sustainable income.  Set up retirement savings into an account which will provide income that you cannot outlive similar to your pension or social security.  Using this type of guaranteed account you will not have the worry of market fluctuations and you can depend on the income for your monthly budget.

If you have any questions about any of the topics discussed please contact us at 417-882-1800.

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. We are able to provide you with information but not guidance or advice related to federal benefits. Our firm is not affiliated with the U.S. government or any governmental agency.  Investment advisory services offered through AE Wealth Management, LLC, an SEC Registered
Investment Adviser.

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