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When is the best time to retire?

When is the best time to retire?

The Questions

One of the most important questions that we discuss with our clients, in order to make the right financial decisions, is the question of when to retire. When our clients come to us, some of the initial questions that we get asked and that they are concerned about are questions such as:

  • Do I have enough money to retire?
  • When should I retire?
  • When should I stop working?
  • What do you think is the best time for me to retire?
  • How much longer do I have to work?

In this article, we'll look at the question of when to retire and discuss some of the factors that are involved in answering this question.

Before I answer these question, I highly recommend you watch this video I recorded that goes through how to avoid running out of money and increase your retirement income. You are also invited to set up a short 20 minute free no cost and no obligation Retirement Ready Success call by clicking here. In this short call we will

  • go over where you are now,
  • where you want to be,
  • and I will share with you some of the strategies I use with my clients to help them achieve financial freedom and peace of mind.

This question has so many variables involved, and there are so many pieces of financial information that we would need to examine in order to answer this question appropriately.


The Information Needed

Here are just some of the questions we ask our clients as we discuss retirement timing:

  • How old are you now?
  • How much money do you have saved currently?
  • What will your Social Security income be?
  • What type of retirement do you want to have?
  • What is going to be your budget during retirement?
  • How long do you anticipate living? What's the longevity in your family?
  • What are your goals during retirement?
  • How much do you plan on traveling?
  • What kind of house are you going to live in, and what kind of car will you drive?
  • How often are you going to eat out?
  • Are you going to be a member of a country club?

Obviously, everyone's answers to these and many other questions will be different, so this is not a question that anyone can answer without looking at everything on your balance sheet, or in your financial life. There is no one correct answer for any of them. Someone may have a goal of wanting to travel around the world once a year. Maybe they want to visit seven different countries per year, or go on mission trips, or buy a new car every three years. Someone who wants to buy a second home and travel a lot is going to need more money than someone that wants to retire in their current home and visit their family that's within driving distance. If someone just need to pay their insurance and basic utilities, buy a car once every 10 years, participate in their church, and eat at home most of the time, their retirement plan will look much different than the world traveler's. It goes without saying that the person with the goals to travel the seven seas, buy a car every three years, join a country club, and eat out every night is going to need far more money.  

So even though there's no one-size-fits-all answer to the question of when you should retire, it's actually quite simple for any given individual.   Once we can answer the questions listed above, we can very easily determine a date for your retirement. For some people that answer could be yesterday.  For others, it could be 5, 10, 15 years from now.

Here at Third Act Retirement Planning, we have been helping people to create retirement plans that will allow them to achieve financial freedom and not run out of money regardless of what the governments or stock markets do in 20 years.  We want to see our clients experience and enjoy their retirement as the best phase of their life.  And that's why we call it the Third Act: it's the third and final act of our client's life, so it should be the best one.  And we're proud to be there to walk through it with them each step of the way, as they address issues like Medicare, Social Security, taxes on withdrawals, tax planning, investment planning, estate planning and insurance reviews.  

Click here to watch my Free Video Presentation that Reveals...

How To Avoid Running Out Of Money In Retirement AND Potentially Increase Your Income In Retirement... By Making ONE Simple Change To Your Finances! You will learn:

  1. How one simple change to your finances can increase your retirement income
  1. How one simple change to your finances can help you avoid running out of money
  1. How to do all this without needing to invest more money or spend more time on your finances.

Or you are also invited to set up a 20 minute free no cost and no obligation Retirement Ready Success call by clicking here. In this short call we will

  • go over where you are now,
  • where you want to be,
  • and I will share with you some of the strategies I use with my clients to help them achieve financial freedom and peace of mind.