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Video Transcript

Everyone has different reasons for retiring, and you might need help figuring out if the time is right for you.

First, there’s the financial piece of the equation. There are four basic steps to determine if you’re financially ready to retire. (#1) Gather your investment, bank, and loan statements in one place. Add your assets; subtract your liabilities – that’s your net worth. (#2) Look at how much you are spending each month. (The shortcut is to look at how much cash arrives in your bank account, and subtract how much tends to be left over at the end of the month.) Multiply by 12 and you’ll have a good sense of how much money you’ll need in a year. (#3) Look at what stands to change in retirement. Is your mortgage almost paid off? Are you planning on moving? Is the cost of living different there? Make those adjustments and you’ll have a sense of your retirement budget. (#4) Lastly, look at your retirement income streams like pension income and your estimated Social Security payments, and compare that with your budget – will you need to pull from other assets to keep up with your monthly spending? How do the numbers shake out each year? After 10 years? Do you have a cushion or are you coming up short?

Keep in mind this is a basic, back-of-the-napkin estimation – there are lots of other factors to consider like your longevity, the cost of healthcare, the potential for future long-term care needs, and the mechanics of generating a tax-wise retirement income stream from your investments.

And that’s not all! Too few realize that retirement isn’t just a math equation. I strive to help my clients work out what kind of life they will retire to. They know what they are retiring from, but the massive shift in daily activities in retirement can be stressful and disorienting. I talk with my clients about ways to build retirement transitions that are less sudden and more meaningful. At Savant, our goal is to help people plan and live their ideal futures.

I’m Joel and I am a Financial Advisor with Savant Wealth Management. If you’re thinking about retirement, but aren’t sure when it’s the right time, I encourage you to give us a call.

Let’s figure this out together.

Author Joel Cundick Financial Advisor / Team Lead

Joel is frequently quoted in local and national media and has been a repeat guest on Federal News Radio. He teaches retirement preparation seminars to Federal employees through the National Institute of Transition Planning.

About Savant Wealth Management

Savant Wealth Management is a leading independent, nationally recognized, fee-only firm serving clients for over 30 years. As a trusted advisor, Savant Wealth Management offers investment management, financial planning, retirement plan and family office services to financially established individuals and institutions. Savant also offers corporate accounting, tax preparation, payroll and consulting through its affiliate, Savant Tax & Consulting.

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