Ep 26: What’s Your Level of Desire to Retire?
When you think about retirement, are you someone that pictures yourself working for as long as you can or do you want to hang it up as soon as financially possible? Everyone has a different level of desire when it comes to retiring and we’ll span the full spectrum on this episode.
The Reality of the Matter:
When a client comes in for their first meeting with us, it’s always interesting to find out when they want to retire. It’s a question we ask early on and everyone has a different answer.
Some people will tell us they love working and can’t ever envision the day that stops while others come in wanting an immediate exit plan. Maybe it’s not that drastic but sometimes it gets close. What’s important is knowing what your desire is and then building a plan that agrees with the timeline.
On this episode of the Retirement Reality Podcast, Mike will take us through the five different levels of desire based on statements that a client might make to us. These statements can also tell us a little more about the client’s situation and Mike will elaborate on each of these levels.
It begins on one end where the person sees retirement way off in the distance. That moves closer to the center of the spectrum where we find people that want to retire but aren’t really sure how long until they’ll be in a position to do so. And then there’s the other side where someone is frustrated with their current work status and need to get out now by retiring.
Unfortunately, if you haven’t been working on a plan, then you could end up waiting well past your desired date. It happens a lot and Mike will share a few client examples from different levels that we’ll talk about on this show. We’ve seen people that fit all across the spectrum and there’s a plan that fits each of them. Make sure you work with a professional to get your plan prepared as soon as you can so your money will be ready when your body is.
We’re going to start the show with a little Getting to Know question for Mike about his favorite sport. If you’ve ever spent any time with him, you can probably guess the answer is football but hear what he has to say about the Vikings.
And the show will close with a mailbag question from a listener about 401k contributions, which we’ll do our best to provide guidance.
2:48 – Getting to Know Mike: What’s your favorite sport?
5:21 – Moving into our main topic on desire to retire.
5:41 – Level 1: ‘I don’t see myself retiring. I love what I do.’
6:49 – Level 2: ‘I guess I could retire but they pay me pretty well and I don’t hate it. So I might as well keep working.’
7:35 – Mike shares a story about a trip to California and a retirement conversation he had.
8:52 – Level 3: ‘I’d like to retire in a few years but I’m not really sure when I can.’
11:05 – Level 4: ‘I always pictured myself working for a few more years but the idea of retirement is looking better and better.’
13:28 – Level 5: ‘I want to retire tomorrow and if I don’t quit this job right now, they might have to put me in an asylum.’
16:28 – Here’s how you can start the planning process regardless of your level.
17:54 – Mailbag question: It appears I’m now able to contribute more to my 401k this year than I was allowed to last year. Is it safe to assume I should put in the extra amount?
Thanks for checking out the Retirement Reality Podcast. We’ll talk to you again next week.