Episode 84: How to Prepare for Early Retirement

Today’s Prep:

Does retiring at 55 sound like a good idea? Russ, one of our listeners, thinks so and wants to know how he can prepare to do so.

(Click the featured times below to jump forward in the episode)

Equipping Points:

Today we are going to answer a listener question that we get a lot and perhaps it even applies to you. Russ wants to retire when he turns 55, which is six years away. What can he do the next decade to be prepared? David has four questions for Russ to ask in order to help prepare for early retirement.

For starters, how much will you spend in retirement? Do you have a detailed plan that includes things like home repairs or future car needs? Are you factoring in inflation? Will you have a mortgage to still pay?

When you retire early, you need to consider your healthcare. Without a job and if you’re too early for Medicare, keep in mind that healthcare is very expensive. Do you know what private health insurance would cost you? Would you find a bridge job to get benefits?

Where will your income come from? What accounts can you pull money from and when will your guaranteed sources of income, such as Social Security or a pension, start? It’s important to figure this out before retiring. Retiring early amplifies this decision and

Will your money last? Have you run an analysis on your expenses and possible scenarios in the decades to come? You don’t know what kind of situations you’ll face later on, but you want to plan to have enough money to make it until your 100th birthday. What happens if you or your spouse needs long-term care? What if there is a financial crisis?                      

Is retiring early a goal of yours? Does it feel attainable after reviewing these considerations?

Listen to the entire episode or click on the questions below to hear David’s ways to prepare. 

[1:24] – Mailbag: What can I do to prepare to retire early?

[3:14] – How much am I going to spend in retirement?

[5:38] – How will you cover your healthcare?

[7:29] – Where will your income come from?

[10:21] – Will my money last?

Today’s Takeaway:

“Your plan is trying to figure out, where is my money going to come from and how long will it last? The goal is to make sure you have money on your 100th birthday.”

– David Dickens

Additional Resources:

PODCAST: What To Know About The 4 Types Of Annuities

PODCAST: How The SECURE Act Changed Inherited IRAs


More From David:

The host: David Dickens

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