By Matthew Theal, CFP®
The number one reason our clients give for wanting to retire is freedom. No more getting up early. No more pointless meetings. No more being yelled at by a boss you can’t stand. When you retire, you become free from the day-to-day grind of the rat race in America.
As you approach your 50s, you should be mindful of significant retirement milestones that are associated with your age. Below is our guide to the dates and associated rules you should plan for in retirement.
The one thing we find in common with most of our transitioning retiree clients is that they hate their job. I think it’s mostly burnout or retirementitis (similar to senioritis from high school). Most of the time it has to do with the fact that they have been working the same job for the past 20-plus years!
This dislike for their current position leads people to retire sometime in their early to mid-60s.
The problem with retiring that early is, when retired, most people will have a fixed income (meaning a paycheck you can count on) from one source, Social Security. Outside of a Social Security check, when retired, most people rely on their retirement accounts and savings to make ends meet.
Did you know that your home is probably your largest retirement asset?
If you have spent your working life as a homeowner in Southern California, you probably have built up significant equity in your home. As you approach your early 60s and you’re getting ready to retire, what should you do with your home?
Is it smart to stay put and leave your home to your kids? Does it make sense to downsize or move out of state? Finally, what if you don’t have significant retirement assets—is it wise to do a reserve mortgage?
I always get asked questions like “How should I invest my 401(k)?”
These questions have become the norm over the last five years, as most of my friends and family know that I’m a financial planner who helps people prepare for retirement.
I decided it would be best to detail the most critical ingredients in building a killer 401(k) portfolio.
As you approach your late 50s and early 60s, the reality sets in that in the next 10 years you will be retiring. You’re scared and nervous. But you know the clock is ticking, and it’s time to leap into retirement.
In the late ’90s and early ’00s, corporations changed the retirement landscape for everyday working Americans. Due to shifts in the economy and underfunded pension liabilities, corporations got rid of the pension plan. They shifted workers to a defined contribution system where the worker must save for their retirement. This massive change shifted the responsibility for retirement from the corporation to you, the individual.
Don’t miss a beat.
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