As politicians debate the future of Social Security, comprehensive financial planning will become increasingly important for those seeking a secure retirement.
Social Security has long been a dependable source of retirement income for millions of Americans. Yet shifting demographics, economic challenges, and the aftershocks of the COVID-19 pandemic have raised concerns about the sustainability of the program.
In fact, the latest projections show that Social Security Trust Fund reserves are likely to run out by 2033—one year sooner than previously estimated. Unless Congress takes steps to shore up the program, beneficiaries will likely see a reduction in benefits.
In this blog post, we’ll explore the factors contributing to a potential Social Security shortfall, as well as the financial planning strategies you can leverage to help secure your retirement.
How Social Security Works
In the United States, Social Security is a federal government program that provides retirement, disability, and survivor benefits to eligible individuals.
Employers and employees pay into the system through payroll taxes. Currently, employees contribute 6.2% of their income, and employers pay an additional 6.2% for each employee.
Contributions go into a Social Security Trust Fund, which is used to pay benefits to current recipients. Consequently, when it comes to the future of Social Security, there’s no guarantee that the money you contribute will be available when you retire.
Why the Future of Social Security Is in Jeopardy
Although the Social Security Trust Fund had an annual surplus of $10.9 billion in 2020, it ran a deficit of $56.3 billion and $22.1 billion in 2021 and 2022, respectively. The future of Social Security is now uncertain, largely due to a combination of demographic changes and economic factors.
First, the birthrate has fallen in recent decades amid a wave of retirements among Baby Boomers, the largest generation of workers in American history. That means there are more beneficiaries but fewer workers paying into the system to fund Social Security benefits.
Thus, not only are there more beneficiaries than workers today, but beneficiaries are collecting benefits for a longer period, on average.
More recently, the Covid-19 pandemic helped put the future of Social Security in jeopardy by prompting millions of workers to quit their jobs or forcing them into early retirement, resulting in a sharp decline in payroll taxes. An economic slowdown, persistent inflation, and weaker productivity growth have only exacerbated the issue.
How the Future of Social Security Affects Retirees
Unless Congress takes steps to shore up the program, beneficiaries will soon see their benefits decrease.
Current projections indicate that the Old-Age and Survivors Insurance (OASI) fund will be able to cover scheduled benefits in full until 2033. At that point, the program will only be able to fund 77% of scheduled benefits.
Social Security beneficiaries may also see reduced cost-of-living adjustments (COLAs), which help maintain the purchasing power of Social Security benefits against inflation. For example, the cost of Social Security increased by 8.7% this year to account for rising inflation, according to the Wall Street Journal.
Lastly, various members of Congress have proposed raising Social Security’s full retirement age, changing the way benefits are calculated, and raising taxes to help cover the shortfall. No matter what Congress decides, the future of Social Security is likely to look markedly different than it does today.
Preparing for a Potential Social Security Shortfall
Ultimately, the future of Social Security depends on Congress’s ability to agree on a course of action. Given the potential political implications, it seems unlikely that either party would let the fund dry up altogether.
Still, waiting on Congress to shore up Social Security may not be wise, especially if you’re nearing retirement age. Instead, you may want to consider the following financial planning strategies, which can help you offset the risk of a potential reduction in benefits.
First, be sure to diversify your sources of retirement income. If you can, aim to max out your contributions to your employer-sponsored retirement plan and/or individual retirement account (IRA).
In 2023, individuals can contribute up to $22,500 to a 401(k), 403(b), and most 457 plans ($30,000 if you’re age 50 or older). You can also contribute up to $6,500 to a Roth or Traditional IRA ($7,500 for those 50 and older).
Even if you can’t contribute up to these limits, boosting your retirement savings can help you retire comfortably no matter the future of Social Security. Indeed, adding to your qualified retirement accounts each month can yield meaningful results over time—especially if you invest wisely.
Qualified retirement accounts offer certain tax advantages that allow you to grow your funds tax-free until you withdraw them in retirement. This benefit amplifies the power of compounding, which can boost your savings long-term.
If you don’t plan to retire in the near term, make sure you’re investing in stocks and other growth-oriented investments, so your retirement funds outpace inflation. On the other hand, if retirement is quickly approaching, make sure your asset allocation reflects your time horizon and risk tolerance.
Lastly, if you’re already retired, consider investing in bonds and/or dividend-paying stocks to offset a potential reduction in Social Security benefits. While these types of investments aren’t risk-free, they can still be meaningful and potentially tax-efficient sources of income in retirement.
Satori Wealth Management Can Help You Retire Confidently and Securely
While the future of Social Security is uncertain—and may be for some time—you can still achieve a financially secure retirement with proper financial planning. An experienced financial advisor like Satori Wealth Management can help you identify and implement strategies to preserve and grow your money over time, so you don’t outlive your financial resources in retirement.
To see if we may be the right fit for your financial planning needs, schedule your free RetireNow™ Checkup today. We look forward to hearing from you!
https://satoriwealth.com/wp-content/uploads/The-Future-of-Social-Security.jpg9001600Danny Michael, CFP® RLP® MSBA/wp-content/uploads/Satori-Wealth-Management-Header-Logo.svgDanny Michael, CFP® RLP® MSBA2023-04-24 14:04:322023-04-24 14:04:33Safeguarding Your Retirement Against a Potential Social Security Shortfall
For many people, the transition into retirement is full of possibility and excitement. Yet it can also be a time of apprehension and doubt—especially when it comes to achieving financial goals. In this article, we’re sharing five key tax planning strategies that can help maximize your retirement years.
No matter how well you prepare financially for retirement, there will always be challenges that threaten to set you off course. For example, many retirees are surprised by how dramatically their tax situation changes once they stop working.
In fact, about two-thirds of retirees say if they had to advise their younger selves on a financial matter, it would be to better understand how taxes affect their retirement savings, according to a recent Thrivent survey.
Traditional (pre-tax) retirement accounts. You contribute funds before taxes, then pay ordinary income taxes on your withdrawals in retirement.
Roth (after-tax) retirement accounts. You contribute after-tax dollars, then withdraw funds tax-free in retirement.
Taxable investment accounts. You contribute after-tax dollars and pay taxes on capital gains when you liquidate your investments.
Naturally, each type of account has its advantages and disadvantages when it comes to various tax planning strategies. Thus, you may find that diversifying your investment funds across each type of account helps you develop a more tax-efficient retirement income strategy.
Plus, in higher-income retirement years when you’re in a high tax bracket, withdrawing funds from a Roth account helps you avoid paying additional income taxes. Meanwhile, you can draw on your traditional retirement or taxable accounts in lower-income years when you’re in a lower tax bracket.
#2: Consider a Roth Contribution or Conversion in Lower Income Years
In 2023, individual taxpayers with modified adjusted gross income (MAGI) above $153,000 (or $228,000 for married couples filing jointly) can’t contribute directly to a Roth IRA. However, if your income is variable, you may want to take advantage of lower income years by contributing to a Roth or considering a Roth conversion.
The IRS allows anyone, regardless of income level, to convert all or part of your traditional IRA funds to a Roth IRA. As a result, you pay taxes on any funds you convert in the tax year you make the conversion.
Any withdrawals you make in retirement are then tax-free, and you don’t have required minimum distributions (RMDs) like you would with a traditional IRA. Thus, when it comes to tax planning strategies, a Roth conversion can be valuable as you near retirement—especially if you expect to be in a higher tax bracket in your retirement years.
Keep in mind that Roth conversions can be complex and aren’t right for everyone. Be sure to consult a financial planner or tax expert before taking advantage of this strategy.
#3: Invest in Municipal Bonds
If you’re approaching retirement, it’s often a good idea to increase your liquid cash reserves so you can still cover near-term expenses if there’s a market downturn. However, depending on where you keep your cash—for example, a money market or short-term bond funds—you may end up paying taxes on any interest you accrue.
The interest on municipal bonds, on the other hand, is exempt from federal income taxes (although you may have to pay state and local taxes, depending on the bond issuer and where you live). Therefore, investing your cash in municipal bonds can help you grow your cash reserves while generating a tax-free stream of income in retirement.
A financial professional can help you determine if this is one of the tax planning strategies that makes sense for you.
#4: Relocate to a Tax-Friendly Area
Many retirees choose to relocate or split their time between two places to reduce or eliminate their state income tax bill. For example, Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming have no state income tax.
In addition, different states also provide different incentives and assistance programs for retirees, such as property tax exemptions, senior Citizens’ Credit Programs, or Elder Care services. Meanwhile, countries like Costa Rica and Portugal are tax-friendly retirement destinations and also boast lower costs of living.
If you’re age 50 or above, you can make catch-up contributions to your employer-sponsored retirement plan and IRA(s). In 2023, you can contribute an additional $7,500 to a 401(k) or 403(b) plan. Meanwhile, you can contribute an additional $1,000 to a traditional or Roth IRA.
Separately, the IRS requires individuals to have earned income to contribute to an individual retirement account (IRA). An exception to this provision is a spousal IRA, which allows a working spouse to contribute to an IRA in the name of the non-working spouse.
A spousal IRA can be beneficial in that it essentially allows you to double your IRA contributions each calendar year. At the same time, you can deduct these contributions from your taxes in the year you make them, lowering your overall tax bill.
Keep in mind there are certain limitations and income requirements to qualify for a spousal IRA. Be sure to consult the IRS’s website or a financial professional to see if a spousal IRA is one of the tax planning strategies that makes sense for your retirement plan.
Satori Wealth Management Can Help You Take Advantage of These Tax Planning Strategies as You Near Retirement
The average retirement lasts 18 years, according to data from the U.S. Census Bureau. Unfortunately, excessive taxes can quickly eat away at your retirement savings if you don’t prepare accordingly.
Indeed, these are just a few examples of tax planning strategies that can help you minimize your tax bill in retirement. An experienced financial professional can help you develop a comprehensive plan that helps you leverage various tax planning strategies and preserve your nest egg long-term.
Satori Wealth Management has been leading clients through the retirement planning maze for 20 years. If you are approaching retirement and would like to speak with us about securing your financial future, we invite you to schedule your free RetireNow™ Checkup today.
Most Americans consider age 65 the normal age of retirement because it was the full retirement age for Social Security Benefits until 1983. But the goal of retiring early has gained widespread popularity in recent years. In this article, we’ll cover what you need to know to retire early at 55.
From formulating a budget to creating tax-efficient retirement income, there are a lot of factors and variables to consider prior to making such an important decision. Making major mistakes will result in lifestyle restrictions or a forced return to the labor force.
Retirement is your reward for a lifetime of hard work and saving money. So let’s talk about how to retire early – and stay retired.
Planning to Retire Early at 55
Knowing exactly how you will spend your time in retirement will be critical to your success. When every day is Saturday there is a high likelihood that you will be spending more money.
Your retirement account withdrawals need to be reasonable to ensure you don’t outlive your savings and investments. Inflation is another obstacle you need to overcome. Your retirement plan needs to account for the higher cost of goods and services in future years.
Thus, having a step-by-step plan to overcome these types of obstacles is necessary.
How Much Do I Need to Retire Comfortably?
One common goal that everyone has is maximizing their quality of life in retirement. This means spending money confidently, without fear, worry, or anxiety.
Traveling the world will require more financial resources than playing bridge or having coffee with friends every day. Consider traveling costs to visit your children and gifts to grandchildren. What does your bucket list look like? Make sure to create a good framework detailing all of your retirement goals.
Mapping out your daily, weekly, and monthly lifestyle goals will assist in determining what a comfortable retirement will feel like. Knowing your expenses is the first step in determining your withdrawal rate. Your withdrawal rate is the amount withdrawn divided by the value of your retirement portfolio.
How Will My Expenses Change in Retirement?
Most retirees don’t take time to create a monthly or annual budget. We recommend creating a pre-retirement budget as well as a retirement budget. This will force you to see how expenses will change, line item by line item.
Retiring at 55 can increase your expenses. Health insurance is one of the most important considerations when factoring in higher expenses.
Losing employer-sponsored health coverage is costly until Medicare eligibility kicks in. Paying for health care costs out of your own pocket is unsustainable. For married couples, deciding whether one spouse works longer to retain affordable health coverage is a conversation worth having.
Some families have children entering college when they plan to retire. This can increase expenses dramatically at the same time employment income disappears. Planning for this change in expenses is paramount to a sound financial plan.
Some things are beyond your control. It is important to focus on what you can control now.
What is the Tax Rate on My Retirement Income?
When creating retirement income, how much you get to keep after taxes is what really matters. It’s important to understand how income and capital gains tax rates work. Having a sound financial plan will help you determine how to withdraw the money you need from retirement accounts – while paying the least amount of tax.
Taxable, tax-deferred, and tax-free accounts are the three primary types of accounts you can withdraw from. Withdrawals from tax-deferred accounts like Traditional IRAs increase your ordinary income tax rate. Tax-free withdrawals from Roth IRAs are just that, tax-free.
Non-retirement accounts are subject to short-term and long-term capital gains tax rates. Selling an appreciated asset held for less than one year is called a short-term capital gain. Short-term capital gains are taxed at your marginal income tax rate. Assets held for longer than one year are taxed at more favorable long-term capital gain tax rates.
Selling an asset that has gone down in value from when you purchased it results in a capital loss. You can use a capital loss to offset a capital gain. This can be beneficial in reducing your tax liability every year. So just knowing which position to sell in an account can have major tax implications for you.
How Much Money Do I Need to Retire Early at 55?
The key question that every retiree wants to know is how much they can spend in retirement without outliving their nest egg. The challenge with retiring at 55 is that the earliest you can begin Social Security Benefits is age 62.
While many retirees that work for a state or federal government have pensions, the earliest age you can begin benefits can range anywhere from 55 to 65. But drawing your pension at 55 can substantially reduce your benefit.
It may make more sense to rely on retirement account withdrawals and delay your pension start date. These are some of the difficult, yet important decisions that need thorough analysis to ensure that you maximize your income in retirement.
Beyond the Four Percent Rule: How Much Can You Spend in Retirement?
The “four percent rule” states that no more than 4.2% should be withdrawn annually (adjusted for inflation) to ensure you don’t outlive your retirement savings. However, this popular rule of thumb is based on a retirement age of 65. Retiring early at age 55 requires the withdrawal rate to be lower.
It really depends on a number of factors, but you may only be able to draw 2-3% in your 50’s, 4% in your 60’s, and 5% or greater in your 70’s. Having a retirement plan that addresses the timing of your retirement income benefits, retirement account withdrawals, and limits tax liabilities will help optimize your financial decisions.
How Do I Generate Income in Retirement?
The biggest challenge when you retire early at 55 is bridging the income gap until Social Security or Pension eligibility. For married couples, coordinating retirement dates with their spouse is important. Extending group health insurance coverage helps reduce expenses until Medicare eligibility. Another option is part-time work or consulting, depending on your goals and skills.
Many retirees pursue entrepreneurial passions they never had a chance to realize during their working years. A lifetime hobby or passion can now have space to blossom into a business and provide supplemental retirement income.
Real estate investors should evaluate their real estate portfolios as they approach retirement. The goal is to invest/retain properties that produce higher income in retirement.
Social Security Benefit Reductions for Early Retirement
Social Security eligibility begins when you reach age 62. But drawing benefits early will reduce your payouts by 20-30%. Delaying retirement benefits to age 70 can increase benefits by as much as 30%!
If you work while receiving benefits prior to reaching your full retirement age, the Social Security Administration will reduce your benefits depending on how much employment income you earn. For example, at full retirement age, they deduct $1 in benefits for every $3 you earn above $50,520. This matters if you plan to work again in one form or another. If you do, it might pay to delay Social Security even if you retire early.
You also want to ensure that you have worked for 40 quarters (10 years) to become eligible for Social Security Benefits. If you are short, it makes a lot of sense to postpone your early retirement at 55 and consider a later age.
How Do I Avoid an Early Withdrawal Penalty from my 401K or IRA?
Retirement accounts have early withdrawal penalties that are prohibitive by design. The intention of having tax-free and tax-deferred growth is to help Americans save more effectively for retirement. By nature, this helps alleviate reliance on programs such as Social Security.
Rules on retirement accounts restrict withdrawals for non-retirement-related purposes. However, there are some exceptions and strategies that can be extremely valuable for early retirees.
Retirement Account Early Withdrawal Penalties – The 59 ½ Rule
Withdrawals from retirement accounts are subject to a 10% withdrawal penalty prior to reaching age 59 and 1/2. This penalty is taken out of the distribution amount prior to assessing the amount of the taxable distribution.
Eligible withdrawals prior to age 59 1/2 are limited to the following exceptions:
First-time home purchases
Birth or adoption related expenses
Remember that distributions from all tax-deferred accounts like IRA’s and 401K’s are taxed at ordinary income tax rates.
Using the Rule of 55 to take Early 401K Withdrawals
A great strategy for accessing money from retirement accounts when you retire at 55 is the Rule of 55. If you are laid off or retire early at 55, the IRS waives the 10% penalty for early distributions from 401k or 403b plans. For public service employees, the rule applies in the calendar year they reach age 50.
Not all employer-sponsored retirement plans support the rule of 55 and some plans require that proceeds be taken in a lump sum.
It is advised that you check with your plan provider prior to making this important decision.
It’s also worth mentioning that the rule of 55 does not apply to old 401ks from previous employers or IRA accounts. It only applies to 401k or 403b plans with your current employer.
Can I Avoid Penalties for Early IRA Withdrawals?
Another strategy to avoid penalties for early retirement distributions isRule 72(t). This rule allows penalty-free withdrawals from retirement accounts, with some caveats. Individuals must take five “substantially equal periodic payments” (SEPP).
The amount varies upon life expectancy calculations. The IRS has three approved methods of calculation. You must also adhere to the SEPP schedule for a minimum of five years or until the age of 59 1/2. Rule 72(t) applies to IRAs as well as 401k and 403b plans.
Are Roth IRA Distributions Subject to the Early Withdrawal Penalty?
You can always withdrawcontributions from a Roth IRA with no penalty at any age. At age 59½, you can withdraw both contributions and earnings with no penalty, provided your Roth IRA has been open for at least five tax years.
This five-year rule governing Roth IRAs applies to three scenarios:
You withdraw earnings from your Roth IRA.
Convert a Traditional IRA to a Roth IRA.
Inherit a Roth IRA
Roth IRAs offer more accessibility than other retirement accounts, but also provide tax-free growth. It’s better to use them as a last resort if possible.
How to Invest When Retiring Early at 55
The asset allocation of your portfolio should become more conservative as you near retirement. This rationale is based upon time horizons. You can withstand volatility and recover from loss when you have a longer time horizon.
When you reach retirement you need your portfolio to provide retirement income. This means that you need some safety in your portfolio to fund these income needs.
Investing Safely for Early Retirement
Fixed income (bonds) are considered to be a “safer” asset class than stocks. Fixed income plays a major role in diversification and wealth preservation.
Historically, bonds have an inverse relationship with stocks. During market downturns when most stocks decrease in value, investment-grade bonds increase in value. This makes them ideal positions to liquidate if stocks are down to provide the income needed in retirement.
In addition to being a hedge against stock declines, bonds pay higher interest than cash. One mistake that some retirees make is having large cash positions in retirement. Cash historically does not keep pace with inflation and is a poor way to invest in the long-term.
Should I Still Invest in Stocks if I Retire Early at 55?
The average retirement represents a long time horizon anywhere from 20-30 years. But if you want to retire at 55, you need to plan for a timeframe of 40 years. This longer time frame is sufficient to absorb risk while participating in upside growth. Think of the stocks in your portfolio as the money you will spend 10 to 20 years down the road.
A well-diversified portfolio should include stocks from a number of different asset classes. You want to have exposure to small, medium, and large companies. Your portfolio should also hold international stocks in addition to U.S. stocks. Holding different types of asset classes in your portfolio spreads the risk around.
Important Strategies for your Retirement Investment Portfolio
Asset location (different from asset allocation) involves determining which accounts to house assets. For example, Roth IRAs provide tax-free distributions making them ideal for high-risk/return asset classes. You want to position low-risk/low-return asset classes in accounts with the highest tax rates like Traditional IRAs.
Rebalancing your portfolio is an important investment management strategy that should be performed consistently. Stock returns outpace bond returns in the long run. If you don’t rebalance your portfolio, the percentage of stocks in your portfolio will continue to increase, making it riskier than you originally intended.
Tax-loss harvesting is another technique to reduce your taxable income. In taxable accounts, selling an asset at a loss and purchasing another will create a realized loss. These losses can then be used to offset gains in the current year or carried forward indefinitely.
What Else to Consider Before You Retire Early at 55
As we have discussed, there are a number of things to contemplate when deciding to retire early. Forming a retirement budget, minimizing taxes, and navigating the complexity of retirement account rules are primary considerations.
Since everyone’s situation is different, there will always be unique situations that require more difficult decisions to be made. Now let’s take a look at some of these situations and some unforeseen risks that could throw a wrench in your plans.
Paying Off Your Mortgage Early vs. Investing: Which Is Best?
Many baby boomers make it a goal to be debt-free by the time they retire at 55. While that may feel like a great decision psychologically, it isn’t necessarily the best financial decision. Leveraging “good debt” like mortgages can really help you out financially. Over the last 20 years, mortgage rates have hovered around 3-4%.
From 1926-2020, the average return of portfolio invested 60% in stocks and 40% in bonds averages over 9% per year. It’s easy to see why utilizing a mortgage and letting your money grow in your investment portfolio is a good long-term strategy. Having a mortgage may make you feel uncomfortable, but changing your perspective about carrying debt can make all the difference in retirement.
Mortgages aren’t the only type of liability retirees have to deal with upon retirement. Some retirees also have children entering college at the same time they retire. In the absence of a 529 plan or college fund, this added expense can cause a significant strain on cash flows. These decisions are integral to your success if you want to retire at 55.
The Five Most Common Retirement Risks You Should Know
There are five main risks every prospective retiree should plan for prior to retirement. Neglecting these risks could inhibit you from your goal to retire early at 55.
A decline in asset values similar to the Great Recession of 2008 is a good example of market risk. At the same time, you can’t be too conservative in retirement. Having a well-diversified portfolio that takes into account your retirement income needs is key.
Longevity and Mortality Risk
The risk of outliving your assets is what every retiree fears. Another risk related to longevity is premature death. This can impact your spouse and any other dependants in your household.
These risks can dictate whether to purchase/retain any life insurance policies. They may also assist you in making decisions like when to take Social Security benefits and pensions.
More trips to the doctor should be accounted for in retirement. We already discussed the higher cost of purchasing your own healthcare before you become eligible for Medicare. But you also have to account for more frequent doctor visits, co-pays, and deductibles.
Health risks increase as you grow older so make sure this is planned for in your retirement expenses. These costs should be higher in your budget until Medicare eligibility at age 65.
There are some events that could have low odds of occurring, but you still want to be prepared in case they do. A long-term care event such as Alzheimer’s could require round-the-clock care for years. Self-insuring this risk is cost-prohibitive for most people. Regular health insurance will not provide coverage against this event.
Relying on an inheritance without 100% certainty could be another example. An earthquake in California could devastate most retirees as only 13% of California homeowners have earthquake insurance.
We can’t predict what curveballs life will throw next. At the very least, you will want to know how certain types of these events will impact you financially.
Tax and Policy Risk
One thing that will be consistent during your retirement is frequent legislative changes. Changes to retirement account rules and the tax code can change year to year. One example is the Tax Cuts and Jobs Reconciliation Act (TCJA) bill that was passed in 2018. In 2020, we saw the SECURE and CARES Acts passed, which had a dramatic impact on retirement distribution rules.
Making sure you have a short and long-term tax plan may be the most important factor in maximizing retirement income. Once a plan is in place, it’s important to keep on top of the policy and tax changes every year and adjust your retirement plan accordingly.
Should I Hire a Financial Advisor or Do it Myself?
We covered a lot up to this point and you should have a pretty good idea of what it takes to retire early at 55. But here’s the million-dollar question:
Do I have the expertise to understand, implement, and monitor every facet of my finances in retirement – and do I really want to?
When making this decision, be honest with yourself and think about the repercussions of making mistakes. Keep in mind that the long time horizon in retirement compounds any mistakes you make. A large amount of personal finance knowledge and expertise is needed, which can increase your margin for error.
Will you really spend the time to keep up on changes to the economic, legislative, and tax landscapes? Is this something you are really interested in doing? If the answer is no, then it probably makes sense to consult with a few financial planners. At the very least, you will be able to get a good sense of the planning work that’s needed after speaking with them.
A Certified Financial Planner™ (CFP®) can help you custom tailor a comprehensive plan that helps you accomplish all of your goals. Above all, a CFP® will provide invaluable peace of mind when things change. Remember that your retirement plan will need to be adjusted on an ongoing basis.
It pays to have an experienced guide on the most important journey of your life.
Final Thoughts on Retiring Early at 55
Early retirement at age 55 is an idea that continues to grow in popularity. Ultimately, it means accumulating enough financial resources to live off for another 5-10 years. A successful early retirement plan hinges upon organization and preparation and is the blueprint to accomplishing your goals.
Making adjustments to your plan on a year-to-year basis is equally as important as formulating a good initial plan. There will be constant change and unpredictability with a number of things that are out of your control. How you react to these changes will play a big part in successfully retiring early at 55.
https://satoriwealth.com/wp-content/uploads/Retireing-Early-at-55-Facebook-Cover-Photo-1.jpg788940Danny Michael, CFP® RLP® MSBA/wp-content/uploads/Satori-Wealth-Management-Header-Logo.svgDanny Michael, CFP® RLP® MSBA2021-11-17 11:27:102022-01-26 10:11:17What You Need To Know To Retire Early At 55
Retirement planning is inherently complex and confusing. Satori Wealth Management guides clients through a robust 5-step RetireNow™ Checkup that prepares clients to make confident, informed retirement decisions so they can enjoy rich, fulfilling lives doing what they love to do… not what they have to do.