For many of us, work is just a way to pay the bills and put food on the table. You might be one of the lucky people who enjoys their job to some degree, but you still can’t wait to retire. Even the best jobs come along with some stress, commuting hassle, and time constraints. You can’t wait for every day to be Saturday!
For a lucky few, an early retirement is a very real possibility. If the following six signs apply to you – especially if all of them do – then you could be one of the fortunate ones. But still, schedule an appointment with us to discuss your retirement budget and income, before you take that leap.
You can actually live on your retirement budget. You’ve done the math, and you know how much income you need to sustain your lifestyle. Even better, you’ve estimated your future retirement income, plus Social Security, and it seems as though these two numbers match.
You’ve planned for healthcare. You will reach Medicare eligibility at age 65, but those who retire earlier than that should plan for some form of health insurance. Going without insurance is an enormous gamble, even if it’s only for a year or two. One major accident or illness could wipe out your retirement funds.
Your fledglings have left the nest. It can be difficult to count on an early retirement with kids still in college, or older ones living at home. Unexpected expenses can still pop up until those kids are fully employed and out on their own.
You’ve paid off your debts. If you’ve paid off all credit cards, have a reliable, paid-for vehicle, and no longer have a mortgage, you might be in excellent shape to retire early.
You’ve hedged against losses. When estimating your retirement income, you might assume a modest interest rate along with regular withdrawals from your account. Hopefully, your retirement fund is well balanced, and can withstand any turbulence in the market. If you’re at risk of heavy losses, think twice about retiring early.
You feel ready. It’s easy enough to dream about retirement on a stressful day, but overall, how do you like your job? Remember, giving up your career will entail a loss of purpose. Make sure to ask yourself (honestly) how you will spend your days, and choose activities that will keep you socially engaged as well as providing personal fulfillment.
Again, it would be very unwise to leap into an early retirement without first seeking professional advice. If the above signs apply to you, schedule an appointment with us to discuss your plans for an early retirement. We can assess your budget and help you balance your portfolio, so that you can begin the next stage of your life on stable ground.
Portions of this article have been excerpted from “6 signs that you are ready to retire early” by Amy E. Buttell, who is not affiliated with LPL Financial.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.