Early Retirement Playbook - Adviser Investments

Early Retirement Playbook

Early Retirement Playbook

The surge in early retirement during the COVID-19 pandemic (also known as the great resignation) has become a bona fide megatrend. If you are part of that trend or just thinking about retiring in the near future, here are four ways to make the transition feasible as well as fun:

  1. Get a handle on your expenses. Your biggest concern is likely to be “Will my current savings be enough to meet my needs for the rest of my life?” The key to answering that question is understanding how much money you’ll need to support the lifestyle you have in mind for retirement. Our Budget Worksheet can help you get started—it allows you to compare your pre-retirement expenses and income against what you expect to spend and earn post-retirement. Also have a look at our retirement spending guide.
  2. Plan for health care. Medicare eligibility begins at age 65. If you plan to retire before that milestone, it’s important to know how you’ll bridge the gap with health care coverage. COBRA—the Consolidated Omnibus Budget Reconciliation Act—may give you the option to pay to keep your employer’s health plan active for up to 18 months after you retire. From there, you can explore the private marketplace for coverage until it’s time to enroll in Medicare.
  3. Evaluate your Social Security benefits. When you retire early, it’s tempting to file for Social Security benefits right away. However, that might not be your best option financially. We have a host of content on Social Security—including podcasts and a special report—to help you think through the decision. And, of course, we are happy to perform a full Social Security analysis for you.
  4. Rethink your employment options. Retirement doesn’t necessarily mean a full stop to working. Consulting on a part-time basis has become an exciting career phase for many of our clients. With a lifetime of expertise and an inclination to work on your own schedule, you likely have a number of options—and we can help you work through them.

With nearly 30 years of helping clients achieve peace of mind in retirement, we know that everyone’s situation is different. Our financial planning team is ready to answer your questions. Give us a call if you’d like our advice about your career time horizon and your retirement lifestyle. We’re here for you.

This material is distributed for informational purposes only. The investment ideas and opinions contained herein should not be viewed as recommendations or personal investment advice or considered an offer to buy or sell specific securities. Data and statistics contained in this report are obtained from what we believe to be reliable sources; however, their accuracy, completeness or reliability cannot be guaranteed.

Our statements and opinions are subject to change without notice and should be considered only as part of a diversified portfolio. You may request a free copy of the firm’s Form ADV Part 2, which describes, among other items, risk factors, strategies, affiliations, services offered and fees charged.

Past performance is not an indication of future returns. Tax, legal and insurance information contained herein is general in nature, is provided for informational purposes only, and should not be construed as legal or tax advice, or as advice on whether to buy or surrender any insurance products. Personalized tax advice and tax return preparation is available through a separate, written engagement agreement with Adviser Investments Tax Solutions. We do not provide legal advice, nor sell insurance products. Always consult a licensed attorney, tax professional or licensed insurance professional regarding your specific legal or tax situation, or insurance needs.

Companies mentioned in this article are not necessarily held in client portfolios and our references to them should not be viewed as a recommendation to buy, sell or hold any of them.

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