Retiring Early? Consider This First
For Mark Roberts’ Use: We all have our own target retirement age, but for most of us it’s around age 65 or a bit later. Even so, sometimes things don’t quite work out the way we had intended. Currently, seven out of ten retirees actually stopped working before their 65th birthday. In some cases this decision was premeditated and intentional, but in many other cases an early retirement was forced by illness or disability. Even a poor job market can encourage us to retire a little earlier.
Of course, you should make sure you have enough retirement income to last the rest of your life, before retiring early. But there is one other important consideration: Since you’re not eligible for Medicare until you turn 65, how will you cover the cost of healthcare?
In the past, most large companies provided healthcare benefits to their retirees but with the cost of health insurance skyrocketing, many businesses are making the tough decision to cut those benefits. Less than half of US companies offer retiree healthcare now, and those numbers are dwindling year by year. Even among the retiree health packages that remain, benefits vary widely, with some early retirees paying considerable expenses out of pocket.
So, if you need to retire early, what will you do? One option is to shop for your own health insurance policy independently. Depending where you live (and your state of health) your premiums and other expenses could vary wildly. If you take this route, assume that premiums will rise each year, and make a plan to cover them until you turn 65 and can access Medicare.
Healthcare is just one of the issues facing those who retire early, but it could very well be the most expensive. Plan carefully before making the leap into retirement, and remember to call us with any questions. Together we can review your plan and decide whether an early retirement is feasible for you.
Share This Story, Choose Your Platform!
In addition to managing clients’ money and giving investment and diversification advice, Mark offers something that “the other guys” don’t - a unique approach to Retirement Tax Strategies and distribution. Time and time again, Mark meets with new clients who tell him they have a great relationship with their financial advisor but have never been offered information on this kind of approach to securing their financial futures. Mark has taken this feedback to heart and works tirelessly to ensure that his strategies focus on taxes and distribution.
Mark started selling insurance for a major insurance company right out of high school to help put himself through college. After graduating with a degree in finance, he dove into estate planning on the financial side to set himself apart from other financial advisors. However, as changes were made to estate tax laws over time, Mark shifted his focus to income tax strategies.
Mark’s philosophy is “the blue prints are more important than the wall paper or carpet.” The wall paper and carpet represent products like investments and insurance policies, whereas the blue prints represent the strategies. Once strategies that truly fit the client’s needs are put in place, our focus can shift to providing you with the right products. According to Mark, “It doesn’t matter what carpet we use if the walls are not in the right place.”
Our approach to money management is designed to generate the largest alpha (quality) with the lowest standard deviation and beta (risk). By doing this, we help provide clients with the highest return on the lowest risk. Generating income for our retirees is also very important. Because withdrawing money from your portfolio hurts the account rather than helping it, our goal is to design income strategies to harm the portfolio the least making the money last longer.
Leave A Comment