What moves should you take now to retire early? How do you know if you have enough or too much risk in your portfolio? Is it worth waiting until 70 for Social Security? David answers these questions in this week’s podcast.
Back by popular demand, we have another mailbag episode today! If you have a question, you’re always welcome to send one in or reach out to David directly. Today, we have three questions from people facing retirement, risk, and how long they need to work to be successful in their goals.
Wade and his wife both have nice incomes and no kids. They are only 45 years old but are considering retiring early in the next ten years. What do they need to do to make that possible? David reminds us it’s not about how much you make but how much you keep. You’ll want to pay attention to healthcare costs. This can be a significant amount each month in your budget, and you’ll need a really good plan to cover that. Next, you’ll want to think about your Social Security strategy.
George knows he should be aware of the risk he’s taking in his portfolio, but how much risk should he be taking? Risk is different for everyone, but you need a plan for how you would react to risk. For example, we just experienced market risk in 2020 when there was a drop that later when onto a recovery. Consider your what-ifs and what your reaction would be. Whether you have too much or too little risk depends on you.
Vickie says her kids probably don’t expect an inheritance from her because she was a single mom for most of their lives. However, she doesn’t ever want to be a financial burden for them. Should she work until she’s 70 in order to take the highest possible Social Security benefit? Financially, there is a good reason to work until 70 to get the highest Social Security benefit. David talks about the 4 percent rule and how this could coincide with your financial plan. If you are concerned about running out of money, those extra couple of years of working and saving are invaluable. It’s important to have a financial plan that makes the most sense for you and allows you to feel confident that you won’t run out of money in yours 80s or 90s.
Listen to the entire episode or skip ahead to a particular question using the timestamps below.
0:27 - The Chiefs are headed in the right direction!
2:03 - Mailbag: What should I know about retiring at 55?
7:29 - Mailbag: How much risk should I be taking?
14:03 - Mailbag: Should I wait until 70 for Social Security?
“When the market’s down fairly significantly, if your reaction is, “I should sell” then you’ve got too much risk. "
– David Dickens
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CONTACT US
OUR LOCATION
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Building 27, Suite 190
Overland Park, KS 66210
Get Directions
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