When it comes to understanding when you can retire, there are a variety of questions to consider before determining the date.
When it comes to understanding when you can retire, there are a variety of questions to consider before determining the date. If you’re wondering how much you need to retire, read this.
Some of the questions we encourage our clients to think through are:
What are my goals and dreams for my retirement?
When it comes to determining when you can retire, it’s important to flesh out and define what you want your retirement to look like. We’re passionate about helping our clients live the life they aspire to, whether it’s volunteering at a non-profit, traveling with the family, or helping at a small company part-time. Understanding what you want in the most clearly articulated way is the first step in living a purposeful retirement.
What remaining debts do I have and when will they be paid off?
Financially it’s important to consider what debts you may have and when they’ll be paid off. Usually, it’s beneficial to wait to retire until most of your debts are complete so that your monthly costs are lowered. This will give you greater freedom and the ability to pursue the goals you have.
Do I have 6-12 months of cash saved for emergencies?
We strongly encourage all of our clients to have 6-12 months of cash set aside for emergencies. Markets move up and down, and we want to be sure that in a year where the market moves down we aren’t forced to withdraw our investments at a loss. Studies show that when you aren’t concerned about covering your daily expenses, you’re a better investor. And we’ve seen that to be true.
Is my community retired?
Many times people don’t consider that when leaving your career, you often leave behind a lot of your community. That's why we encourage you to think about who will you be around in your retirement. Will you have friends and family to spend time with or opportunities to be social? If you want to learn more, check out our article on how to avoid identity loss in retirement.
Do I have a financial retirement plan?
When it comes to retirement, it’s important to have a plan. From what you want to accomplish, to how you can afford those dreams, a retirement plan should give you the confidence to retire and step into the next season. Our approach provides each of our clients with a custom-crafted plan that’s unique to them, enabling them to see year-by-year what their finances will look like. And what will happen in the years to come if they choose to take that trip now, instead of 5 years from now.
If you want to get an understanding of how our financial plans work, talk to an advisor.