Sure you like your job. But if you had the chance to retire early, say at age 50, would you sniff at it? Maybe you really like your black swivel chair. Perhaps you think your work is just too important to leave it behind. The truth is that there are other people out there who can do your job, and you can get the same black swivel chair at Staples!
For most people, a 30-year career is quite enough. But is early retirement realistic for you? Let's take a look.
At age 50, the government says you've got about another 33 years to live. That's longer than your entire working career. With life expectancy increasing by leaps and bounds, you may want to think in terms of a 40-year retirement.
Besides travel, golf, fishing, and classes in paperclip art, what else is on the agenda? How much will it cost? Will you have enough to do it all? How much has to come out of each paycheck to raise that stash? Good question!
Have you thought about inflation? After all, peering out 20 years into the future you know that the $50K that looks like a good annual income now will certainly have to be larger to buy the same things then as it does today. But what's inflation going to be through the years? And that's just to get you to the first year of retirement. What impact will it have over the 40 years after that?
Where will you live? With luck, the mortgage will be paid off so all you have to worry about is property taxes. Maybe you'll even sell out and move into a smaller place in a sunnier climate. Sure beats having to shovel snow at age 70, even if it is further away from family and friends. Besides, the kids can always come down for a visit.
You should think about insurance, too. You're probably insured under group policies through work for disability, life, and health coverage right now. In fact, your employer probably kicks in some part of or maybe even the entire premium for that insurance.
Retire, though, and you will most likely lose that coverage. What happens to your spouse if you're inconsiderate enough to die early or (heaven forbid) become permanently disabled? If required to do so, how will you pay for a major illness or hospitalization and all of the attendant physician's bills?
Forget about Social Security or Medicare. You're way too young for either of those to apply. And even if you did qualify, will the assistance be enough for a survivor and/or all the medical bills? If not, what alternatives do you have? And what about long-term care costs?
About now you may be thinking: "Hmmm, perhaps I should have a few more children to support me in my old age." Don't worry, Fool. You needn't sire enough offspring for a soccer team. Our advice? Never leave your job.
We're just kidding, of course. We're confident you can retire at a reasonably young age without having to populate the
Retirement planning entails far more than just picking an age to do so and a beachfront property to do it upon. It requires a hard look at your lifestyle, your resources, and a whole host of factors that we tend to take for granted while we're working. Most, but not all, deal with money issues. As Fools, we face them head on.
No hay comentarios:
Publicar un comentario