Want to Retire Early? Read This First.
As a financial advisor, I have seen firsthand how much planning it takes to retire early. Deciding to leave the workforce (and say goodbye to your steady paycheck) earlier than you previously intended to may come with many considerations. If you are intrigued by the idea of retiring early, read on for some suggestions for how to assess if moving your retirement date forward is something within your reach.
1. Define your dream retirement. A realistic early retirement plan doesn’t happen by chance. It takes careful planning and deliberate action. Before you can figure out how to make early retirement a viable option, take time to envision the kind of life you want to lead when you leave your primary career. Where will you live? What kind of activities do you plan to pur-
sue? These are the types of questions that will help you define what you want your retirement to be like.
2. Quantify your goal. Many retirees find they spend more money in the early years of retirement because they have more time to travel and pursue hobbies. If this aligns with your retirement vision, be generous in your estimate of how much money you need each year. Once you have an estimate of how much it will cost, you will be better able to map the steps you’ll need to take to save enough money to fund it.
3. Decide which income source to tap into first.
Once you know how much your early retirement will cost, you’ll want to line up the order in which you will tap into your investments. How much income you need, the tax treatment of your investments, and the timing of when you’ll take Social Security are all factors to consider as you map out how you will create a paycheck in retirement.
4. Adjust your saving and spending today. Once you have a clear idea of how much your dream retirement will cost, you can evaluate the potential tradeoffs and sacrifices necessary to make it happen. This will likely require reducing spending while maximizing the amount you are saving.
5. Continue investing for growth. It’s common for retirees to adjust their investment allocation to be more conservative in
order to protect their principal from potential market downturns or increased volatility. While this may make sense for some, it’s important for your portfolio to at least keep on pace with inflation. After all, retirement can easily last several decades. Even modest inflation can make a meaningful impact over that timeframe. Factoring inflation into your projections can help you maintain your purchasing power throughout retirement.
6. Don’t overlook health care expenses. Many retirees are surprised by how much of their budget goes toward medical expenses. Don’t be one of them. Make finding health insurance a top priority. And, consider the pros and cons of purchasing long-term care insurance.
7. Be flexible. In life and investing, there are no guarantees. Unexpected events can happen any time, and many have financial implications. Think about what your options are if your savings come up short, such as adjusting your retirement date, spending or perhaps picking up a part-time job, and make sure you have the right insurance in place to cover your various assets. Retiring early is a big dream. If you want help deciding if or how moving your retirement date forward is realistic for you, meet with a financial advisor. Together you can review your goals, investments, risk tolerance and other factors to help you make retirement decisions
with confidence.
Duane J Lusson, CFP, ChFC, CLU, MSFS, is a Private Wealth Advisor with Ameriprise Financial Services, Inc. in Ottumwa, Iowa. He specializes in fee-based financial planning and asset management strategies and has been in practice for 30 years. To contact him, call 641-684-4200 or stop by his office at 527 W. Second in Ottumwa, Iowa.
Ameriprise Financial cannot guarantee future financial results
Ameriprise Financial, Inc. and its affiliates do not offer tax or legal advice. Consumers should consult with their tax advisor or attorney regarding their specific situation.
Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value.
Investment advisory products and services are made available through Ameriprise Financial Services, LLC, a registered investment adviser.
Ameriprise Financial Services, LLC. Member FINRA and SIPC. © 2023 Ameriprise Financial, Inc. All rights reserved.
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Pella Regional Health Center le da la bienvenida al Dr. Martinez, quien practica Medicina Familiar con Obstétrica.
“Mi pasión es proveer excelentes servicios médicos en el área rural, con un enfoque especial en obstétrica, obstétrica quirúrgica (incluyendo cesáreas), y trabajar con las comunidades marginadas,” dijo el Dr. Martinez. “Yo creo en proveer una experiencia positiva a través de todo el embarazo, empezando con los servicios prenatales hasta llegar al momento de labor y parto, y a los cuidados del puerperio.”
El Dr. Martinez habla con fluides el inglés y el español. Él está casado y tiene dos hijos. El disfruta de pasar tiempo con su familia, ver películas, y ver ó jugar deportes (especialmente el fútbol).
Ahora viendo pacientes en Pella y Ottumwa.
Para hacer su cita, por favor llame al 641.621.2200 o visite PellaHealth.org.
Road Rage
I went to South Hy Vee yesterday to get Granny Smith apples for the pie I made for a fundraiser. When leaving the grocery store, I turned north onto Quincy Avenue. There was some congestion ahead of me caused by road work near the Highway 34 intersection.
Approaching the traffic lights at the mall entrance by Burger King, I stopped short of the intersection, even though I had a green light. Traffic on the road ahead of me was not moving. It was one of those situations where the light would have changed to red, and I would have been caught sitting in the middle, blocking the intersection for cross traffic, who then would have had the green light. It was the polite thing for me to do. (It’s also the law in most states.)
A few cars ahead of me moved forward, allowing me to get through and clear of the intersection. Several cars behind me also advanced forward so as not to miss the green light, however they were now completely blocking the intersection.
As anticipated, the light changed. Cars stopped in the intersection behind me blocked the cross traffic, creating a gridlock. No one could turn or go straight because cross traffic also pulled into the intersection, so they would not miss their green light. Oh boy. This was a situation where simple courtesy would
have worked wonders.
Instead of getting angry as I sat on the traffic-tangled road, I put my window down to enjoy the fresh air. I noticed a grey Ford Taurus with Davis County plates in the southbound turning-lane next to me. Two ladies in the front seat were engrossed in conversation, perhaps discussing what they would buy while shopping today. Whatever their subject was, a boy in the back seat seemed bored nearly to death by their conversation as he stared blankly into space.
The boy appeared to be about 10 or 11 years old. He was wearing a yellow shirt and had scruffy reddish-blonde hair. He sat slumped down in his seat. I stared at him until I got his attention.
Once he looked at me, I bent my right thumb back, touching it to the tip, pushing upward to make a pig nose. I fanned my four fingers, scrunched up my face, stuck out my tongue, crossed my eyes, and began wiggling my fingers. He smiled, sat up straight in his seat, and returned my gesture. We both had a good laugh. The driver’s face was turned away from me as she talked to her front seat passenger. She paid no attention to what was going on in the back seat. So, I place a thumb on each side of my head, making moose antlers, extending all my fingers outward. I again contorted my face, stuck out my tongue, crossed my eyes, and wiggled my fingers while tilting my head back and forth. My new-found friend began laughing at the face I was making toward his
mother.
His laughter interrupted the ladies’ conversation in the front seat. The driver looked my way. I quickly lowered my hands to appear innocent, but it was too late. She caught me making faces at her.
The puzzled lady had to be wondering what she had done to provoke me? The boy in the back seat was still laughing.
With my window open, I brought my index finger to my temple, making a circling motion. Finally, I spoke to the boy, “I think your mom is crazy.”
The mom started laughing, and the girl in the front passenger seat laughed, too. The boy in the back seat was still laughing, and I also had to laugh. We all had a good laugh together right there in the traffic jam.
A few cars ahead of me advanced forward, allowing me to move forward. I waved goodbye to the boy and the two ladies in the turning lane. The few vehicles blocking the intersection behind me also moved forward.
A courteous driver back at the traffic light stopped short of the intersection, even though he now had a green light, which allowed the other motorist blocking the road to make their turns, thus clearing the congested roadway.
During the blockage, some other drivers be -
came angry and honked their horns. With my window open, I could hear some cussing as they expressed their opinions to the rude drivers. I could have opted to get upset along with them, perhaps flipping the bird to the inconsiderate drivers behind me who created the mess.
Rather than engaging the rage caused by a few, the people in the grey Ford Taurus and I opted to use our time enjoying a good laugh with strangers who found themselves caught in the same unexpected situation.
Life presents us with situations, and not all of them are pleasant. How we deal with those moments is a choice. Choose well and you’ll have a better day.
