PLANNING FOR RETIREMENT
Retirement is a significant life transition that requires careful planning and consideration. In a recent episode of the 90 Days from Retirement podcast, wealth advisor Jaeden May and Erik Soderborg discussed some of the key factors to consider when trying to determine the right time to retire. While there is no one-size-fits-all answer, these topics aim to give direction to wise financial decisions as one enters the next phases of life.
ACCESSING QUALIFIED RETIREMENT ACCOUNTS BEFORE 59 1/2
The magic age for accessing qualified retirement funds without penalty is usually 59 ½. This can pose challenges if one wants to retire early but does not have the necessary funds outside of these qualified accounts to sustain themselves. However, there are some specific methods that can be used—assuming the plan documents allow them—that enable individuals to access their retirement funds earlier.
OPTIONS FOR EMPLOYER INVESTMENT PLANS
When you cease working for an employer, you have options with the retirement funds you have built with that company:
ADJUSTMENT FOR SPENDING
Psychology and money intersect significantly when it comes to retirement. It's common for retirees to harbor fears about spending down their savings, a concern that is entirely valid given the uncertainty of future needs. However, this fear should not overshadow the joy of retirement. With careful financial planning and a well-structured spending strategy, retirees can confidently utilize their assets without jeopardizing their financial security. This balance allows them to fully enjoy the fruits of their labor, making retirement a fulfilling and worry-free phase of life.