People are living longer and healthier lives today than ever before. Hopefully, that’s going to be you. But when we look at retirement from a couple of decades ago, people were trying to retire younger and younger. I remember seeing an ad in the 1990s about someone who did such a great job trading stocks that he bought his own island. Well, obviously, things have changed since then. But I’ve seen many people who had planned on some early retirement in the past, who then start looking at things, thinking: I don’t know how realistic early retirement is going to be for me.
Of course everyone’s situation is unique, but the important thing is that you have some proper planning and use the right kind of assumptions to be able to say, “All right, if I retire today, will my money last until I’m 75, 85, 95?” If you start looking at the statistical odds of living a long life, the last thing you want to do is hit age 82 and think that was your normal life expectancy, only to realize that you still have many healthy years ahead of you—and have run out of money.
For some people, early retirement is still a possibility. For others, it means taking a realistic view on the possibilities of living a long time coupled with lower rate of returns in this modern environment. Many people are saying, “Maybe I’m not going to retire so early. Maybe it would be better for me to delay a few more years.”
Again, everyone’s situation is unique.
Fortunately, at Hanson McClain, the process we use, whether it’s our copyrighted Compass process, or the 7 Personal Decision Points process, or both, we can help map these things out and take a good look at where you are today: Is retirement realistic now, or should you push it out a few more years? Fortunately, we’ve got some tools to help you navigate that process.