‘Will your money last?’ isn’t the only question to consider before retiring.
I was chatting with a friend the other day about his retirement — possibly an early one. At age 60, he has worked hard and invested well — and he’s burned out.
He’s received wonderful guidance from his financial advisor, with whom he’d discussed the viability of his investment portfolio. But as he and I talked, it was clear that the key inputs were more nuanced than his portfolio value and asset allocation. There were lifestyle decisions, too.Will you continue to work in some fashion?
Working longer wasn’t my friend’s first choice. But continuing to earn an income would help him worry less about his portfolio’s ability to last.
Even if he downshifted into a lower-paying or part-time position and couldn’t save as much, he’d still be forestalling portfolio withdrawals. So, when he did fully retire, he could spend without worry.
It would also help him delay Social Security. If he continued to work in a position with healthcare benefits, he could avoid paying health insurance out of pocket until Medicare coverage kicks in. And as much as his job has been exhausting him, he’s had a wonderful career and his professional life seems intertwined with his identity.
