Woodstock Financial Advisor – Third Act Retirement Planning —

How To Retire In 5 Years or Less

How to Retire in 5 Years or Less 

If you’re getting closer to retirement age, you may be wondering how to retire within the next 5 years. As we try to imagine how to make that happen, for most people, it’s going to require a tremendous lifestyle change. And yet for many people, it won’t require any change at all. In fact, many of the clients that begin working with us, wanting to retire in five years or less, would actually be able to retire right away, comfortably and with complete financial freedom, and they don’t even know it. So this is something that we’re going to look at carefully in this article. 

If you want to retire in five years or less, you’ll want to create a plan that’s contingent on the amount of cash flow that you have coming in or that you can generate from your net worth, your investments, along with what your expenses will be.

So in a situation where you don’t have a lot of money and you’re not going to be getting any Social Security or a pension, and any returns on investments are very low, it’s going to be next to impossible. 

What if you have limited assets and cash flow?

If that’s you, could maybe buy a home and rent out all the rooms except yours, and that could pay for the home. You could sell your car so you have no car insurance payments. You could get on one of the share insurance plans, like a Christian Care insurance plan, if you wanted to have some insurance coverage, and you could buy groceries frugally and really try to live off your assets. In this scenario, you’d still need enough assets to make it for the rest of your life, or at least until Social Security starts coming in. So that’s what we’re looking at for someone with limited aspects and is super frugal. It still may be possible to retire within five years. 

For the Wealthier

Now we’re going to look at someone on the other side of the spectrum. I’ll never forget when one of my largest and wealthiest clients came to me. He and his wife had been working hard, both earning six figures, for 30 plus years, and they were ready to retire. He said to me, “When I retire, my main goal is that I don’t want to live off of cat food.” Of course, as I began to look at his situation, with the Social Security he had coming in and all of his assets, he and his wife were going to receive a tremendous amount of Social Security each month because of all they’d paid in. And they had seven figures of savings. I quickly saw that he was never going to be eating cat food unless most everybody else in the world was too. If we were conservative and wise with his money and the decisions that he was making, it just wasn’t going to be an issue.

Many of you who are reading this article are likely already in a position where you can retire right now. You probably don’t have to wait five years. If your goal is to retire now or very soon, go ahead and put a plan together. Look at what you believe your expenses are going to be in a comfortable retirement, what your goals are, and what you’d like to accomplish during retirement. It’s easy to look at your income and assets, and how those will support you during retirement. Then you can account for your Social Security, and you may find out that it’s entirely possible to go ahead and retire right this second. It all depends on your assets and your expected income during retirement, but there’s likely a way that you can plan how best to retire in five years or less.

Set up a Free Call or Watch My Video

You are invited to set up a short 20 minute call with me to discuss whether or not you can wisely retire in 5 years or less: https://calendly.com/thomascloud/retirement-ready-success-call. There is no cost or obligation.

Also I encourage you to watch my free retirement video: https://go.thirdactretirement.com/strategy  

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