All Good Things Must End

As an addict avid watcher of Game of Thrones, I always hope that the series will go on for as long as The Simpsons. But as we’ve all seen in our lives, eventually all things (good and bad) must end.This article discusses the potential end of the run of GoT. I guess we will all have to deal with a series finale at some point within the next few years. The good news is that with Breaking Bad, Walking Dead, Friends, Seinfeld, MASH, etc. (depends on your generation which one will most resonate), we have precedent in watching our favorite show end. 

Much like our favorite shows end, I have had the privilege to work with a lot of people who are at the very end of their careers. I have been able to help people see what their financial future could look like if they decide to no longer come to work every day. Prior to having the “I’m retiring” chat with their manager, they want to make sure that their financial life is in a good place and want to double check their math to make sure that they won’t have to live in a van down by the river during retirement. They also want to see what else they should know that maybe they don’t know.

Those conversations are usually a lot of fun because I get to see the stress and worry wash away as the conversation progresses and seeing them walk out of the office KNOWING that they can actually choose to end their career on their own terms is remarkably fulfilling.  A lot of the conversations have a similar path and there are some “best practices” that near-retirees can do to prepare. Here are some things that anyone considering retirement should do:

  • Know your expenses! Take a look at the last 6 months of bank/credit card statements so that you know how much you’re really spending now. Add in the projected cost of healthcare and you should have a fairly good understanding of how much money you’ll need on a monthly basis.
  • Know your income sources. Run a Social Security estimate to see what your benefits are at age 62, your Social Security full retirement age and 70. If you have a pension, run estimates at various retirement ages (60, 62, 65, 67) so that you see the impact (good or bad) of waiting to collect benefits.
  • Understand a realistic amount of money you can withdraw from your investments on a monthly basis without running out of money or jeopardizing your future. You can use this calculator to estimate how long your money might last.
  • Make sure you know how to log in to all of your accounts (especially your 401k and/or pension) from your home computer. Most employees have access via their work computers or links on their intranet, but most people I talk to don’t know how to access their accounts from home. Also, make sure that you understand your exit package from your employer. Some options have a short time frame for decision making.
  • As much as retirement is about the numbers, it’s also about non-financial issues as well.  Be prepared for what you’re going to do on a random Wednesday in September when you wake up and don’t have to log on and answer 150 work emails. What will your days look like? How will you spend your time? Spend time thinking about/visualizing what retirement looks like.

Like all things, your career must come to an end. If you follow these 4 simple steps, you can move from awfully-darn-close-to-retirement into retirement with comfort. Now that’s a finale!

 

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