On today’s episode, we’re sharing some things you need to have in place to retire before the age of 65. Here are five areas you need to have covered so you can transition to that next stage of your life.
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On today’s episode, we’re sharing some things you need to have in place to retire before the age of 65. These are five areas you need to have covered so you can transition to that next stage of your life without worry.
Have enough money to retire early
Having enough money seems like a pretty obvious thing you need to retire before 65, but we need to talk about this. Times are changing and people are looking to retire early. Is your financial bucket big enough to be able to to pull the trigger and move into that retirement date?
When you go into retirement, you’re going from accumulating money to a financial bucket of money. You’ll be cutting your own personal paycheck, and you have to take taxes out of that check, so you might not have all the money you think you do. If you have $1 million in an IRA, you don’t own $1 million. You own that money minus taxes.
Have a plan for health insurance
This is an item that can be very easily missed, and it’s a cost that can be hundreds to thousands of dollars a month. Looking at those costs are a big, big factor. At age 65, that’s when Medicare starts, which is a lot lower than private health insurance.
Have a plan for non-retirement accounts
If you retire before age 59.5 and all your money is in retirement accounts, any withdraws from those accounts before that age can incur a penalty. You may want to think about saving it outside your typical retirement accounts. It could be saved in an after-tax brokerage account.
Listen to the entire episode or click on the timestamps below to skip ahead to a particular question.
[4:11] – Want to retire before 65?
[5:14] – Have enough money
[14:53] – Have a plan for health insurance
[19:20] – Have a plan for non-retirement accounts
[22:40] – Have a plan for Social Security
[28:14] – Have a plan for your life
[30:15] – Summary
Thanks for checking out this episode. We’ll talk to you again soon.
“Is your financial bucket big enough be able to to pull the trigger and move into that retirement date?”