We do love it when someone refers a family member or friend to us. Sometimes the question is, “How can we introduce them to you?” Well, there are multiple ways but a very easy way is to simply forward them a link to this webpage.
Here are this week’s items:
How to Retire at 62 in 2026 With Peace of Mind
Radon and Murs discuss:
How to build the foundational steps for retiring at age 62 and achieving peace of mind in retirement planning. They dive into the critical questions that need to be answered, the data required to assess retirement readiness, and the steps to create a retirement roadmap. With this episode as the first of a two-part series…
We often begin retirement planning by addressing foundational questions. This includes understanding your goals, taking an inventory of your financials, and clarifying expenses. Our Peace of Mind Roadmap process is designed to help you retire with confidence. It consists of two parts:….
Retirement is an exciting milestone, yet it comes with important questions: “Have I saved enough?” and “Can I truly retire comfortably?” If you’re planning to retire at age 62 in 2026, the steps you take now will shape your financial freedom and peace of mind. This guide, inspired by our Secure Your Retirement podcast, walks you through how to prepare, what questions to ask, and how to build your personalized Peace of Mind Roadmap.
The Peace of Mind Roadmap: A Two-Step Approach
We often begin retirement planning by addressing foundational questions. This includes understanding your goals, taking an inventory of your financials, and clarifying expenses. Our Peace of Mind Roadmap process is designed to help you retire with confidence. It consists of two parts:
Gathering Data: Collecting and organizing financial information, understanding your goals, and clarifying your spending needs.
Building Your Plan: Analyzing your data, exploring scenarios, and developing a financial plan tailored to your needs.
Let’s break these steps down so you can start preparing your Peace of Mind Roadmap.
Step 1: Gathering the Right Data for Retirement Success
The cornerstone of any effective retirement plan is accurate and comprehensive data. Here’s what you need to consider when gathering your financial information:
Assets: Building Your Financial Snapshot
We ask clients to create a financial inventory, which helps determine if retiring at 62 is feasible. Here are the key areas to assess:
Cash on Hand:
How much do you have in checking, savings, money market accounts, or CDs?
Understand the purpose of your cash: Is it for emergencies, investments, or daily expenses?
Life Insurance:
What types of policies do you have?
Is the policy term or permanent? If permanent, is it intended for income, cash value growth, or a death benefit?
Annuities and Non-Qualified Investments:
Are your annuities growth-oriented or income-generating?
Identify other investments like brokerage accounts or stock portfolios.
Retirement Accounts:
Document your IRAs, 401(k)s, and Roth accounts.
Know your employer match for current contributions.
Real Estate:
Evaluate the value and liabilities of your primary residence and investment properties.
Pensions and Deferred Compensation Plans:
Understand the income stream from pensions, including cash balance plans or deferred compensation plans.
Liabilities: Understanding Debt and Cash Flow
Taking stock of debts is essential when planning to retire comfortably:
Mortgages: Determine your payoff timeline and monthly costs.
Car Loans: Factor in when these will be paid off.
Other Debts: Include liabilities like credit cards or personal loans.
Income Sources: What’s Coming In?
Your retirement plan is only as strong as its income streams. These include:
Social Security: Get an estimate of your benefits at 62, full retirement age (67), and age 70.
Part-Time Work or Consulting: Will you continue working to supplement your retirement income?
Rental Income: Calculate how much income investment properties generate.
Expenses: Breaking Down Spending
A well-rounded retirement plan accounts for three categories of spending:
Essential Needs:
These include fixed costs like mortgage payments, utilities, and groceries.
Wants:
Travel, hobbies, dining out, and memberships fall under this category.
Legacy Giving:
Charitable donations and gifts to family are also part of your financial picture.
Tip: Focus on net spending—what you need monthly after taxes. This ensures a realistic view of your financial needs.
Estate Planning Essentials
A solid plan for retirement includes preparation for the unexpected. Ensure you have up to date:
Will
Power of Attorney
Healthcare directives
HIPAA release forms
These documents protect you and your loved ones in the event of unforeseen circumstances.
Step 2: Building and Analyzing Your Peace of Mind Roadmap
Once you’ve gathered the data, it’s time to analyze it and build your Peace of Mind Roadmap. This is where we apply financial modeling to answer the critical question: “Does my plan work?”
Scenario Analysis
In your Peace of Mind Roadmap, we create various scenarios to test the strength of your plan. For example:
What if inflation rises faster than expected?
How will healthcare costs impact your savings?
Can your assets sustain your lifestyle if the market underperforms?
By running these scenarios, we identify risks and opportunities in your plan.
The Importance of Regular Reviews
Even the best retirement plans require regular updates. We recommend reviewing your plan annually. By monitoring your financial picture, you can adapt to changes in the economy, taxes, or your personal goals.
Addressing Common Retirement Concerns
As you plan your retirement at 62, here are answers to some common questions:
Is Social Security Enough to Retire at 62?
Social Security alone is rarely sufficient to cover retirement expenses. By understanding your benefits and supplementing them with other income sources, you can create a balanced plan.
What Happens If I Outlive My Savings?
Longevity risk is a top concern for retirees. Solutions like annuities, disciplined withdrawals, and proper investment strategies help your assets last throughout retirement.
How Do I Plan for Market Downturns?
Diversifying your portfolio and maintaining a cash reserve are key strategies to protect your retirement savings during volatile markets.
The Role of Professional Guidance
Retiring comfortably at 62 is achievable with the right planning and guidance. A financial advisor can help you:
Align your investments with your goals.
Minimize taxes through strategies like Roth conversions or tax-efficient withdrawals.
Create a sustainable withdrawal plan that protects your principal.
Final Thoughts on Retiring at 62 in 2026
Retiring at age 62 is a dream for many, but it requires intentional planning and preparation. By gathering accurate data, understanding your expenses, and building a personalized plan, you can achieve peace of mind and enjoy the retirement you’ve worked hard for.
Schedule your complimentary call with us to ask any questions you may have from this blog. If your questions don’t all fit in a 15-minute call, we will guide you to the next steps to get some answers.
Plan wisely, stay informed, and secure your future. Remember, the key to retiring at 62 in 2026 with peace of mind is creating a comprehensive plan and sticking to it.
Every week, we have podcasts come out, and as new listeners find us, it can get very tedious to find all the resources we provide. This week we have prepared an End of 2023 wrap up to highlight some of the episodes from this year.
Reviewing 2023’s Episode List
Finding an episode on your respective listening platform will vary, so we’re going to provide:
Title
Episode number
Date
We’ll also link to the location on our website where you can listen to each podcast to make it a bit easier to find.
Ep. 193 – Navigating The Decision to Retire Now or Work Longer – January 16, 2023
If you’re wondering if you can retire or if you’re ready to retire, you’ll love this episode. It can be an overwhelming process, so we take some time to outline important considerations such as:
Budgeting
Health and Age
Goal and Interests
This episode helps you think through your financial readiness to secure your retirement.
Ep. 197 – 10 Reasons Everyone Needs a Power of Attorney in Retirement – February 13, 2023
Anything can happen at any time. A Power of Attorney, particularly a Durable Power of Attorney, is one that we’ve seen come up a lot this year with clients. Disability or incapacitation can happen at any time.
We outline 10 very important reasons to have your Power of Attorney documents in order, including:
Protecting Privacy
Dealing with Tax Matters
Having Someone to Manage Your Finances
A Power of Attorney is up there in importance with your will and HIPAA authorization.
You’ll learn the ins and outs of Power of Attorney documents in this episode.
Ep. 201 – Do You Need a Trust in Retirement? – March 13, 2023
We did quite a few episodes on trusts this year because they’re such an important part of retirement planning. We’ve partnered with professionals in this area so that our clients can easily have a trust put in place for them.
In this episode, we interview Andres Mazabel at Trust & Will. He addresses the common question, “Do I Need a Trust?”, to really help you understand if a trust is right for you or not.
Ep. 204 – Social Security Spousal Benefit in Retirement – April 3, 2023
Social Security has a lot of complications, which is why we brought Heather Schreiber on to explain how spousal benefits work. In our example scenario, one client has worked their entire life, and his spouse did not.
His spouse assumed that without working, she wouldn’t have Social Security, but we explained how she would receive $1,700 a month in benefits.
For many couples, an additional $1,700 in benefits is completely finance-altering. If you’re close to Social Security age, this is certainly a good episode to listen to.
Ep. 208 – Maximizing Tax Benefits by “Bunching” – May 1, 2023
If you’re charitably inclined, you can leverage “bunching” and donor-advised funds to save money on your taxes. In the episode, we discuss how you can bunch multiple years of contributions into one so that you can take a larger deduction.
Utilizing this strategy has saved some of our clients hundreds or thousands of dollars.
Ep. 217 – You Have Enough to Retire, but How Do You Create an Income – July 3, 2023
Creating income is challenging when you’re in the accumulation phase of life transitioning into the retirement phase. In this episode, we discuss how to put assets into buckets and methods that you can follow to have a consistent income.
We talk about sequence of return risks and how to really have fun in retirement.
Ep. 219 – Annuities or CDs – What You Should Consider – July 17, 2023
Last year, interest rates rose. For annuities and CDs, interest rates were favorable and therefore quite attractive to many people. In this episode, we cover what you need to think about when deciding between an annuity and a CD.
Ep. 223 – Protecting Against Cybersecurity Threats – August 14, 2023
Cybersecurity is something that you may not expect to see on this list, but it’s a crucial topic that demands attention. Around this time of year (the holiday season), threats increase dramatically.
You may receive spam and phishing threats from many directions, including texts and emails.
We outline 14 items for you to consider to help protect yourself from these threats going into 2024.
Ep. 224 – Long-Term Care Planning Options – August 21, 2023
Long-term care planning is something no one wants to think about, but it’s something that you really must dive into before you need it. Our guest Jessica Iverson talks with us about how this form of planning has evolved, the breakdown of increasing costs, and alternative options that are available.
You do have options where you’re not stuck in a “use it or lose it” scenario, which is what we cover in great detail in this episode.
Ep. 226 – Integrated Wealth Management Experience in Retirement – September 4, 2023
In this episode, we look at what integrated wealth management means and how it works in our practice. You will be interested in this episode if you want to know how we address:
Ep. 234 – Roth IRA – 5-Year Rule – Your Retirement – Part 2 with Denise Appleby – October 30, 2023
Denise Appleby was our special guest during this episode, and she discusses Roth IRAs in such great detail that it’s a must-listen. We go over the rules for Roth accounts and conversions from start to finish in a nice and easy manner.
Ep. 235 – The Art of a Risk-Adjusted Portfolio in Retirement – November 6, 2023
Risk in retirement exists, but you can use a risk-adjusted portfolio to hedge those risks. We explore determining risk tolerance and some of the strategy behind investment styles. We also take some time to define terms like:
Ep. 236 – Rae Dawson – The Basics of a CCRC – November 13, 2023
Note: Rae was also on for Episode 236 on November 27 (listen here) for Part 2.
Rae teaches a class on Continuous Care Retirement Community (CCRCs) at Duke University, and joined us on the podcast to dive in on the basics, such as:
