Episode 171: The Accidental Retiree
Today’s Prep:
If you find yourself retiring sooner than you planned, what do you do? We talk through three steps you need to take if you find yourself retired earlier than expected.
Equipping Points:
After re-reading The Accidental President, David was inspired to talk about what we’re calling the “accidental retiree.” Sometimes people aren’t looking to retire but are let go and left wondering if they need to get a new job. An unexpected job loss in your early 60s or late 50s might cause you to reevaluate your original retirement plan.
What steps would you need to go through if you find yourself in this spot? Could you become work-optional and what would it take to make it happen financially? To start, assess what your current spending is. What is a must-have and what is a lifestyle extra? Then, consider what you need to secure in terms of health insurance.
Without a job, where will your income come from? Will that be enough to cover your expenses? Depending on your age, you may be able to start Social Security. Calculate the difference you would receive depending on when you start taking out withdrawals. Another possible source of income is with a pension if you have it. Could you work as a consultant or pick up a gig job? You might begin pulling money from your portfolio.
Finally, will you be able to make your money last? David works with his clients to target money to last until they reach 100 or into their 90s. Do your expenses need to adjust in order to have enough money for the long-run? There may be things you decide to do with your house, such as paying off the mortgage or even refinancing. Don’t forget about taxes! Find out if there is a way to reduce your taxes now that will also help you in the future when taking out RMDs.
Make sure you surround yourself with people who are knowledgeable and who you trust to help you with your best interests in mind. This will ensure you can navigate through the challenges you may face and achieve your retirement goals.
If you ever want your question spotlighted on the show or to ask David something about your retirement, email him at [email protected]
Listen to the entire episode or skip ahead using the timestamps below to skip to a particular question.
0:31 - What inspired today’s episode?
2:41 - What would you do if you became an accidental retiree?
4:00 - What do you spend now?
6:07 - Where will your income come from?
10:28 - Will your money last?
Today’s Takeaway:
“You can’t forget taxes as you’re looking through your plan."
– David Dickens
KC Financial Advisors Blog


