It's here! The decade when most of us will retire: your 60's. You survived so much to get here - the customers who treated you poorly, the boss that asked more of you than he did of himself, the co-worker that microwaved trout in the office kitchen. All of that is soon to be a distant memory as you can turn off the alarm and leisurely sip coffee on your porch. You can go to all of your granddaughter's soccer games, take that woodworking class at the community center, or even spend a dream summer in Minot, ND. But before you peace out of the job and get to the good times, let's work through the final steps to ensure the best retirement possible.
1, 2, 3… Cancun!
Just One More Thing...
By the time you turn 60, retirement is nearly a reality. Perhaps you're even ready to go... like, now! Let's approach this as the "average American" quoted in the link above, who will retire at 62. You are 60 and are T - 2 years to retirement. What do you need to do to make sure you retire on your terms?
Let's evaluate the three factors that drive retirement: how much do you have saved, how much do you need to retire as you wish, and when are you retiring? Let's start with what you need. If you followed my advice in your 50's, you've been dialing in your retirement costs along the way, and have a good sense at this point and have adjusted your savings goals accordingly. Now, let's pivot to your savings. You better be pretty darn close to what you've targeted - say 95% or closer - at this point. Two years is not enough time to make up for a large deficit. Also, your savings should be much more conservatively invested now: not totally out of stocks, but some stable returns like bonds should be a substantial part of the portfolio. Finally, let's look at the retirement date. If you've met 100% or more of your retirement goal, you certainly are ready to go at 62. Don't stop contributing to retirement, and keep working if you can. If you want to call it a career sooner, that's an option, but you'll need to recalculate your retirement spending accordingly. What if you're at 90% of your targeted needs? Don't panic and take unnecessary risks! Adjust your goals, or push your retirement out. Remember, an extra year working generates more money, but also means less money spent in retirement.
Done.. Or Are You?
Say you retired at 62. You're now 64... and bored out of your mind! Yeah, that's possible, and no reason to feel guilty. While Derrick's nuked fish in the break room drove you nuts, you miss working. Or, what if those three North Dakota timeshares sunk your savings and you need some extra cash. Perhaps you have a passion that you'd like to pursue as a second career, like pottery or battle rap?
Can you go back to work after retiring? Yes! Some of us (myself included) enjoy working - the satisfaction of accomplishment and being valued. But do so on your terms. Unless you just need the cash, find something that's both enjoyable and lucrative. Value your time accordingly, and don't sacrifice the freedom of your retirement for the almighty dollar. If you just want to contribute to society and the money is not a factor, what about volunteering? There are so many wonderful organizations that need your time. You may fill that same void left from not working with non-profit work. And, if you're religious, score some brownie points with your god before your time's up?
Well, if you think the retirement discussion is over as I just talked about getting retired… shame on you! It’s one thing to get retired, it’s another to stay retired. Plus, there are so many financial considerations once you are retired that we haven’t discussed yet. I’ll continue this topic next blog. Until then, keep dreaming of Minot!
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