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:
The High Net Worth Guide to Secure Your Retirement
Murs discuss the essential steps to creating a comprehensive financial plan designed for high-net-worth retirement. Joined by Nick Hymanson, CFP®, they walk through the emotional and financial transition from accumulating wealth during your working years to distributing that wealth to fund your retirement. …..
The High Net Worth Guide to Secure Your Retirement
When you’ve spent your life building wealth, transitioning from work to retirement can feel overwhelming. At Peace of Mind Wealth Management, we specialize in financial planning for retirement, and through our years of experience, we’ve seen what works—and what doesn’t—when preparing for this major life milestone. In this retirement planning guide, we’ll explore the key strategies high net worth individuals should consider……
When you’ve spent your life building wealth, transitioning from work to retirement can feel overwhelming. At Peace of Mind Wealth Management, we specialize in financial planning for retirement, and through our years of experience, we’ve seen what works—and what doesn’t—when preparing for this major life milestone. In this retirement planning guide, we’ll explore the key strategies high net worth individuals should consider, including managing sequence of returns risk, structuring your retirement investment strategy, planning for long-term care, and optimizing retirement withdrawal strategies.
So, whether you’re wondering “is it time to retire?” or trying to decide “when should I retire?“, this comprehensive guide will walk you through what it takes to secure your retirement.
The Shift From Work to Wealth
For many high-net-worth individuals, the hardest part of retirement isn’t financial—it’s emotional. After decades of saving, shifting from earning a paycheck to relying on your wealth can feel uncertain. The fear of running out of money or not having enough for the lifestyle you envisioned is real, but with the right strategy, it doesn’t have to define your retirement.
Along with the fear of running out of money comes questions like:
What if the market crashes early in my retirement?
How can I protect my wealth from unexpected downturns?
How do I protect myself from rising costs like healthcare and inflation?
These concerns are valid. Fortunately, there are proven strategies to protect against these risks.
Managing Sequence of Returns Risk
One of the most significant but least understood dangers to high net worth retirement is sequence of returns risk. This risk refers to the impact that the timing of poor market returns can have on your retirement savings, especially when you’re making regular withdrawals.
Consider this: Two retirees each start with $1 million. They withdraw the same amount annually and average the same return over a decade. But one retiree experiences negative returns in the early years of retirement, while the other experiences those negative returns later. Even with the same average return, the retiree who faced early losses may run out of money much faster.
This is why managing sequence of returns risk is critical. Having a retirement investment strategy that prepares for market downturns from the start helps protect your assets, ensuring you can keep paying yourself for decades to come.
The Three Bucket Strategy: Building a Solid Investment Foundation
Cash Bucket: This is your easily accessible money. It’s held in high-yield savings or money market accounts and is designed to cover emergencies and short-term expenses. For some, this might be $20,000. For others, several hundred thousand dollars. The right amount depends on your comfort level and cash flow needs.
Safety and Income Bucket: Designed to provide predictable income with limited or no market risk, this bucket covers your essential expenses. The goal is to generate a stable return—typically in the 4% to 8% range—to fund your retirement withdrawal strategies without worrying about market volatility.
Growth Bucket: This is your long-term growth engine. Invested in the market through stocks, ETFs, and alternatives, this bucket is meant to outpace inflation and support your financial needs 10, 20, or even 30 years into retirement.
By strategically allocating your assets into these buckets, you create a system where your essential income is protected while your long-term assets continue to grow.
Long-Term Care Planning for High Net Worth Individuals
Another major concern for retirees is long-term care. Costs for assisted living, nursing homes, and in-home care have risen dramatically and show no signs of slowing down. For high net worth individuals, long-term care planning is essential—not just to cover costs, but to protect your estate from being drained by healthcare expenses.
We work with our clients to create long-term care planning solutions that align with their overall retirement income planning goals. This may include hybrid long-term care insurance, self-funding strategies, or incorporating long-term care costs into the safety bucket of the Three Bucket Strategy.
Tax Strategies in Retirement
A major piece of risk management for high net worth individuals is managing taxes. Many retirees hold significant assets in pre-tax accounts like 401(k)s and IRAs. Without proper tax strategies in retirement, you may pay far more than necessary in taxes over your lifetime.
Tax planning should be integrated into your retirement checklist and considered before you retire. Strategies may include:
Roth conversions during lower income years
Tax-efficient withdrawal strategies
Managing Required Minimum Distributions (RMDs)
Coordinating Social Security and pension income with other taxable income
Crafting Your Peace of Mind Pathway
At Peace of Mind Wealth Management, our process for planning retirement revolves around what we call the Peace of Mind Pathway. Think of it as a GPS for your retirement journey. We help you define where you are today, where you want to go, and how to navigate the bumps along the way.
The Peace of Mind Pathway has three key phases:
Roadmap: We analyze your current financial picture, define your retirement goals, and identify the best path forward.
Implementation: We put your custom plan into action, from investment adjustments to cash flow planning and risk management.
Nurture: We continue monitoring your plan, adjusting as life changes, tax laws shift, and markets evolve.
This process ensures your plan is not only set up correctly but remains optimized for your evolving needs.
Is It Time to Retire? How to Know You’re Ready
Whether you’re five years away from retirement or contemplating if now is the time, having a clear plan is essential. High net worth individuals have more moving parts in their retirement strategies, which means more opportunities—but also more complexity. The earlier you start planning, the more options you have to protect and grow your wealth.
At the end of the day, retiring comfortably isn’t about hitting a magic number. It’s about having a strategic plan that provides reliable income, protects your lifestyle, and gives you peace of mind.
To learn more, read the article “Is It Time to Retire? Key Considerations”.
Ready to Secure Your Retirement?
By building a thoughtful plan that includes strategies for retirement income planning, risk management, long-term care planning, and tax strategies in retirement, you’ll be well on your way to retiring comfortably and living the life you’ve worked so hard to create
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:
Navigating Retirement – Inflation, Market Volatility and Social Security
Radon Stancil and Murs Tariq discuss some of the biggest concerns retirees face in 2025: inflation and retirement, market volatility, and Social Security benefits. As economic uncertainty continues, many are wondering how interest rates and the economy will impact their financial future. ...
Navigating Retirement – Inflation, Market Volatility and Social Security
Radon Stancil and Murs Tariq discuss some of the biggest concerns retirees face in 2025: inflation and retirement, market volatility, and Social Security benefits. As economic uncertainty continues, many are wondering how interest rates and the economy will impact their financial future. Radon and Murs provide valuable insights into how retirees can develop a…..
Planning for retirement requires careful attention to many financial factors, especially in today’s economic climate. Retirees and those nearing retirement in 2025 face challenges such as inflation, market volatility, and Social Security uncertainties. Understanding these factors and proactively planning can help ensure financial stability and peace of mind throughout retirement.
Inflation
Inflation has been a persistent issue over the past few years, affecting everything from grocery bills to healthcare costs. Many retirees find that their expenses are rising faster than anticipated. While inflation rates have moderated compared to their peaks in 2022, certain costs, such as utilities and food, remain stubbornly high. The Federal Reserve continues to monitor inflation and interest rates, and while rate cuts were expected in 2025, there’s no certainty on their timeline or impact.
Planning for Inflation
A well-thought-out retirement income strategy accounts for long-term inflation, not just short-term fluctuations. Retirees should consider:
Diversified investment risk management
Adjusting withdrawal rates to align with inflationary pressures.
Exploring income-generating investments that keep pace with inflation.
Utilizing annuities or inflation-adjusted income streams.
To learn more about how inflation impacts retirement planning, read our article on Inflation and Retirement.
Market Volatility
The stock market has seen significant fluctuations over the past few years. While 2023 and 2024 delivered strong growth, economic uncertainties, geopolitical tensions, and Federal Reserve policies continue to create volatility. Many retirees wonder if they should change their investment strategy to protect against downturns.
Safe Investment Strategies for Retirees
Rather than reacting to short-term market fluctuations, retirees should adopt a risk-balanced investment strategy that includes:
A three-bucket strategy: cash for emergencies, income safety assets, and growth investments.
Rebalancing portfolios to align with risk tolerance and retirement goals.
Investing in low-volatility options such as bonds or dividend-paying stocks.
Exploring alternative investments that are less correlated with market movements.
Social Security
Social Security remains a cornerstone of retirement income, yet many retirees face questions about when and how to start benefits. In 2025, the Cost-of-Living Adjustment (COLA) was only 2.5%, which, combined with rising Medicare premiums, resulted in minimal net benefit increases.
Key Considerations for Social Security Planning
When Should I Retire? Timing your Social Security benefits can impact your overall financial security. Delaying benefits until age 70 results in the highest monthly payout.
Spousal Strategies: If married, coordinating spousal benefits can maximize household income.
Tax Implications: Understanding how Social Security is taxed can help reduce unexpected liabilities.
Interest Rates and the Economy – What Retirees Need to Know
Interest rates play a significant role in retirement income strategies. While many expected rate cuts in 2025, the Federal Reserve has maintained a cautious approach. Higher rates can benefit savers by increasing yields on fixed-income investments but can also impact borrowing costs and the broader economy.
Navigating Interest Rate Changes
Retirees should consider:
Allocating funds into fixed-income investments such as CDs, bonds, or high-yield savings accounts.
Adjusting retirement income sources based on economic conditions.
Retirement Planning – Staying on Track for a Secure Future
A successful retirement requires a comprehensive financial plan that adapts to economic changes. The key to a secure retirement is preparation, ongoing assessment, and strategic decision-making. Here are essential steps to ensure a financially stable retirement:
Diversify Your Investments: Balance growth and safety to protect against market fluctuations.
Optimize Social Security Benefits: Choose the best claiming strategy based on your situation.
Manage Tax Efficiency: Minimize tax burdens on withdrawals and Social Security benefits.
Plan for Healthcare Costs: Account for rising medical expenses and long-term care needs.
To learn more about creating a solid retirement plan, read our article on Retirement Planning.
Secure Your Retirement – Your Questions
If you want to understand all this a little better, we offer a complimentary phone call that you can schedule with us on our website. If we can’t answer all your questions in just 15 minutes, we’ll guide you to the next steps to find the answers you need.
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:
2025 – Common Deductible Charitable Gifts in Retirement
Radon and Murs discuss the strategies and rules surrounding common deductible charitable gifts in 2025. As the new year begins, many individuals are setting charitable giving goals while seeking to maximize their tax benefits…..
2025 – Common Deductible Charitable Gifts in Retirement
Charitable giving remains a cornerstone of financial planning, offering a means to support meaningful causes while also reaping tax benefits. However, navigating the complex rules surrounding charitable tax deductions requires a clear understanding of adjusted gross income (AGI), standard deductions, and other related factors..…..
As we step into 2025, many individuals are re-evaluating their goals and aspirations for the new year. For those inclined towards philanthropy, understanding the tax implications and strategies behind charitable giving can be immensely beneficial. This guide will walk you through the key aspects of deductible charitable gifts, providing actionable insights to maximize both your contributions and their associated tax benefits.
The Importance of Charitable Tax Deductions in 2025
Charitable giving remains a cornerstone of financial planning, offering a means to support meaningful causes while also reaping tax benefits. However, navigating the complex rules surrounding charitable tax deductions requires a clear understanding of adjusted gross income (AGI), standard deductions, and other related factors. Whether you’re donating cash, appreciated assets, or taking advantage of specialized strategies like qualified charitable distributions, a thoughtful approach can make all the difference.
When it comes to donating cash to charity, many assume that a dollar donated equates to a dollar deducted. However, the tax system introduces several nuances. Cash donations are eligible for a below-the-line deduction if you itemize your taxes, meaning they’re calculated after determining your AGI.
Standard Deduction vs. Itemizing
In 2025, the standard deduction is roughly $30,000 for married couples filing jointly, slightly higher for seniors. If your total itemized deductions exceed this amount, itemizing becomes advantageous. Cash donations contribute to this total and can be deducted up to 60% of your AGI. For example, with an AGI of $100,000, you can deduct up to $60,000 in cash donations.
Carrying Forward Excess Donations
If your cash donations exceed 60% of your AGI, the excess can be carried forward for up to five years. This ensures that larger donations still yield tax benefits over time.
Donating appreciated assets, such as stocks or real estate, offers unique advantages. By donating these assets directly, you avoid capital gains taxes while still receiving a tax deduction.
Short-Term vs. Long-Term Capital Gains
Short-term capital gains: For assets held less than a year, deductions are capped at 50% of AGI.
Long-term capital gains: For assets held longer than a year, deductions are limited to 30% of AGI.
For instance, if you have $100,000 in AGI and donate long-term appreciated stock valued at $30,000, you can deduct the full amount.
Related Use Rule
When donating items like art or equipment, ensure the recipient organization uses the donation in a manner consistent with its purpose. This impacts the deductibility of the contribution, often allowing up to 50% of AGI in deductions.
For retirees aged 70½ and older, Qualified Charitable Distributions (QCDs) are an excellent strategy for maximizing charitable contributions without increasing taxable income.
Key Benefits of QCDs
Funds are transferred directly from an IRA to a qualifying charity.
QCDs count toward your required minimum distribution (RMD), reducing the taxable portion of your retirement income.
Unlike other donations, QCDs have no AGI limits, allowing substantial contributions without affecting your tax bracket.
Annual Limits
For 2025, the maximum annual QCD amount is $108,000 per individual. Over a decade, this strategy can facilitate significant charitable impact while minimizing taxes.
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:
What Issues in Retirement Should I Consider at The Start of the Year
Radon Stancil and Murs Tariq discuss how to approach the start of 2025 with clarity and purpose. They introduce a detailed checklist to help you organize and plan various aspects of your life, including cash flow management, estate planning updates, tax considerations, and more. This isn’t just about setting New Year financial goals or resolutions; it’s about…
What Issues in Retirement Should I Consider at The Start of the Year
As we step into 2025, it’s the perfect time to assess where you stand financially, personally, and in terms of your long-term goals. The beginning of a new year offers a unique opportunity to reflect on the past, set goals, and establish a solid plan for the future. In this blog, we’ll explore key areas to evaluate and optimize for a successful year ahead.…..
As we step into 2025, it’s the perfect time to assess where you stand financially, personally, and in terms of your long-term goals. The beginning of a new year offers a unique opportunity to reflect on the past, set goals, and establish a solid plan for the future. In this blog, we’ll explore key areas to evaluate and optimize for a successful year ahead, from cash flow management to estate planning updates. Let’s dive into your new year’s checklist for achieving financial peace of mind.
Reflecting on the Past Year
The first step in planning for the year ahead is reflecting on what went well in 2024. What were your biggest accomplishments, both personally and financially? Write these achievements down, as they serve as motivation and a benchmark for future goals. Documenting successes can also provide clarity and perspective when setting new objectives.
For retirees, this could mean reviewing how you managed your retirement income and whether your expenses stayed on track. If you’re still working, it’s a chance to celebrate milestones at work or progress toward retirement planning strategies. Journaling your reflections can help you better understand what’s important and what needs improvement.
As you move into the new year, establish clear, attainable goals. These might include:
Planning a family vacation
Completing a home improvement project
Learning a new skill or hobby
Advancing retirement planning strategies
Preparing for significant life events, such as a child’s graduation or a milestone anniversary
Writing down these goals ensures they don’t get overlooked. It’s also essential to align your personal goals with your financial planning to avoid surprises later in the year.
Cash Flow Management
One of the most critical aspects of financial health is cash flow management. The new year is an excellent time to:
Review income and expenses: Has your income increased due to a raise or new job? Have your expenses shifted due to lifestyle changes?
Evaluate subscriptions and memberships: Cancel services you no longer use to free up cash for other goals.
Adjust savings contributions: If your income has increased, consider boosting your retirement savings or emergency fund.
Plan for large expenses: Whether it’s a kitchen remodel or a vacation, coordinating these expenses with your financial advisor can help minimize tax impacts and maximize efficiency.
Effective cash flow management allows you to allocate resources strategically and achieve financial goals without unnecessary stress.
Retirement Planning Strategies
If you’re approaching retirement or already retired, the start of the year is a great time to revisit your retirement checklist. Key considerations include:
Reassessing your risk tolerance: With market performance fluctuations, your risk exposure may need adjustment. Consider rebalancing your portfolio to align with your current goals.
Evaluating Roth IRA conversion benefits: If you experienced a drop in income or have additional deductions, a Roth conversion might make sense this year.
Reviewing contribution limits: The IRS often adjusts limits for IRAs, 401(k)s, and Ensure you’re taking full advantage of tax-advantaged accounts.
Setting retirement goals: Are you planning to retire this year? Ask yourself, “Is it time to retire?” and evaluate your readiness with the help of a financial advisor.
Tax Planning
Year-end tax planning tips are crucial for minimizing tax liabilities and maximizing benefits. Consider the following:
Gather necessary documents: Start collecting W-2s, 1099s, and charitable donation receipts to simplify the filing process.
Understand your tax bracket: Know where you fall in the 2025 tax brackets to plan more effectively.
Plan for Roth conversions: Analyze whether converting pre-tax retirement funds to a Roth IRA aligns with your tax strategy.
Review withholdings: Ensure your withholdings are accurate to avoid owing a significant amount or receiving a large refund.
Evaluate capital gains: If you have a taxable brokerage account, assess your realized and unrealized gains to explore tax-loss harvesting opportunities.
By addressing these tax issues early, you can avoid surprises and make smarter financial decisions throughout the year.
Insurance Reviews
Insurance is another area to revisit at the start of the year. This includes:
Medicare planning: If you’re turning 65 in 2025, consult a Medicare specialist well in advance to ensure you understand your options.
Long-term care insurance review: Explore modern policies that provide better coverage options than traditional plans.
Property and casualty insurance: Ensure your home insurance reflects current property values, especially if your home value has risen significantly.
Health insurance for early retirees: If you plan to retire before 65, evaluate your options for bridging the gap until Medicare eligibility.
Proper insurance planning protects you from unexpected expenses and ensures you’re adequately covered as your needs evolve.
Review wills, trusts, and power of attorney documents: Ensure they reflect your current wishes and family dynamics.
Check beneficiary designations: Confirm that the beneficiaries on your accounts align with your estate plan.
Fund your trust: If you established a trust but haven’t transferred assets into it, complete this process to avoid probate complications.
Stay informed on legal changes: Be aware of any new laws or regulations that could affect your estate planning strategies.
Keeping your estate plan up-to-date ensures your assets are distributed according to your wishes and minimizes stress for your loved ones.
Assessing Assets and Debts
The start of the year is a natural time to evaluate your financial standing:
Replenish cash reserves: If you dipped into savings for year-end expenses, plan a strategy to rebuild your emergency fund.
Review investment strategies: Analyze whether your current allocations align with your financial goals and risk tolerance.
Consider debt management: If you’re nearing the end of a mortgage or other loans, decide whether to pay them off early or maintain them strategically.
Check your credit score: Regularly monitoring your credit score can alert you to potential fraud or identity theft.
Understanding your assets and liabilities provides a clear picture of your financial health and helps you make informed decisions.
Planning for Life Events
Major life events often come with financial implications. Whether it’s a child’s graduation, a wedding, or a new home purchase, planning ahead can make these milestones more enjoyable and less stressful. Coordinate with your financial advisor to ensure your plans align with your broader financial goals.
Conclusion
The beginning of a new year is a time of opportunity. By reflecting on the past, setting attainable goals, and addressing key financial areas like cash flow, retirement planning, tax strategies, insurance, and estate planning, you can set yourself up for success in 2025 and beyond.
If you want to understand all this a little better, we offer a complimentary phone call that you can schedule with us on our website. If we can’t answer all your questions in just 15 minutes, we’ll guide you to the next steps to find the answers you need.
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 – All the Numbers You Need to Know
Radon Stancil and Murs Tariq continue their discussion from Episode 292 on How to Retire at 62. In this follow-up, they welcome their team member, Taylor Wolverton, to dive into the numbers of a real-world retirement financial plan. Together, they walk through detailed retirement scenarios for someone looking to retire at 62, highlighting critical strategies…
How to Retire at 62 – All the Numbers You Need to Know
We show you all the numbers and scenarios you need to consider when planning to retire at 62. Whether you’re looking for a realistic retirement income strategy, Social Security timing advice, or answers to questions like.…..
Retiring at 62 is a dream for many people, but it can also feel overwhelming without the right plan in place. You might be asking yourself questions like: How much do I need to retire at 62? or Will my savings last throughout retirement? These are important concerns that require clear answers and a well-thought-out financial strategy.
At 62, you’re at a unique crossroads. You may be eligible to begin receiving Social Security benefits, but should you take them early, or wait for a higher benefit later? You’ve likely spent years contributing to a 401(k) or other retirement accounts, but how do you turn those savings into reliable income? And what role does inflation play in your ability to retire comfortably?
In this blog, we’re going to show you all the numbers and scenarios you need to consider when planning to retire at 62. Whether you’re looking for a realistic retirement income strategy, Social Security timing advice, or answers to questions like How much to retire at 62? This comprehensive guide will give you the clarity you need.
Using a financial plan example, we’ll explore every critical detail: income, expenses, inflation, and even what happens if you decide to work part-time. By the end, you’ll see exactly what it takes to retire at 62 and feel confident about your future.
If retiring at 62 is your goal, it’s time to take action. Let’s dive into Cindy Martinson’s story to see how you can secure your retirement and enjoy your golden years with peace of mind.
Setting the Stage for Retirement Planning at 62
Let’s introduce Cindy Martinson, a 61-year-old professional earning $200,000 per year. She has done a great job saving for retirement, accumulating:
401(k) Balance: $1,000,000
Cash Savings: $50,000
Brokerage Account: $200,000
Cindy’s goal is to retire in June 2026, when she turns 62. Her monthly expenses are $6,000, and she wants to know: Will her retirement plan work?
To answer this, we’ll walk through her numbers step by step, showing you how to plan for retirement at 62, including Social Security at 62, 401(k) withdrawal strategy, and inflation factors.
Step 1: Retirement Income at 62
One of the first steps in building a retirement financial plan is identifying income sources. For Cindy, her income will transition as follows:
2026 – The Year She Retires
Salary Until June: $83,000 (partial year of work)
Social Security: Starts in June at $13,000 for the remainder of the year.
By 2027, Cindy will receive her full annual Social Security benefit of $27,097. While some may delay Social Security for higher payments, starting at 62 made sense for Cindy’s retirement income strategy.
Note: Social Security benefits can increase over time due to cost-of-living adjustments (COLA). However, to keep the plan conservative, we assumed no COLA increases.
Step 2: Expenses and Inflation
Cindy’s current monthly expenses are $6,000, or $72,000 annually. However, inflation means her costs will rise over time. We included a 3% annual inflation rate in her retirement financial plan. Here’s what her expenses will look like as she ages:
2026 (Age 62): $74,160
2036 (Age 72): $96,000
2046 (Age 82): Over $129,000
Inflation is often overlooked, but planning for it ensures you won’t run out of money as your cost-of-living increases.
Step 3: Retirement Portfolio and Withdrawals
With $1,000,000 in her 401(k), $200,000 in a brokerage account, and $50,000 in cash savings, Cindy’s portfolio starts strong. The question becomes: Can her withdrawals sustain her lifestyle?
Here’s a breakdown of her withdrawals:
2026: $6,000 (partial year of withdrawals)
2027: $51,000
2030: $53,000
2040: $60,000
Even with withdrawals increasing over time, Cindy’s balance holds up well. By age 90, she still has $933,000 in her portfolio – a clear sign that her retirement plan works.
The Key Assumptions:
Rate of Return: 6% annually (net of fees).
Inflation: 3% annually.
Social Security: $27,097 per year starting at 62.
Step 4: Required Minimum Distributions (RMDs)
At age 75, Cindy will face Required Minimum Distributions (RMDs). RMDs are mandatory withdrawals from tax-deferred accounts, like a 401(k) or IRA. The IRS forces you to start taking these withdrawals to collect taxes.
The good news is that Cindy’s plan already accounts for RMDs. Her portfolio balances and cash flows remain stable even after the withdrawals begin.
What If Cindy Works Part-Time?
Many people hesitate to fully retire at 62, so we ran an alternative scenario for Cindy. She asked: What if I work part-time until I’m 65?
In this scenario:
Cindy earns $50,000 per year working part-time.
She delays Social Security until age 65, increasing her annual benefit to $33,548.
The Impact on Her Retirement Plan
By age 90, Cindy’s portfolio balance grows to $1,465,000 (instead of $933,000). Working part-time gives her more flexibility and financial security.
This example shows how even a small change, like part-time work, can significantly improve your retirement plan.
The Importance of Flexibility in Retirement Planning
Retirement planning is not a one-and-done process. Life changes, goals shift, and your plan needs to adapt. For Cindy, having a live retirement financial plan allows her to:
Adjust her retirement scenarios (e.g., working one more year).
Explore different withdrawal strategies.
Account for changes in expenses, income, or market returns.
Annual reviews ensure her retirement plan stays on track, no matter what life throws her way.
Key Takeaways: How Much Do You Need to Retire at 62?
To retire comfortably at 62, here are the critical factors to consider:
Current Savings: Cindy’s $1,000,000 401(k) gave her a strong foundation.
Expenses: Know your monthly and annual spending needs.
Inflation: Plan for rising costs (3% annually is a safe assumption).
Social Security: Starting at 62 worked for Cindy, but delaying can increase benefits.
Withdrawal Strategy: Managing how much you withdraw ensures your portfolio lasts.
Flexibility: Consider part-time work or delaying retirement for added security.
If you’re asking yourself, How much do I need to retire at 62? the answer will depend on your unique situation. A personalized financial plan is the key to retiring comfortably and securely.
Ready to Secure Your Retirement?
If you want to understand all this a little better, we offer a complimentary phone call that you can schedule with us on our website. If we can’t answer all your questions in just 15 minutes, we’ll guide you to the next steps to find the answers you need.
Retirement at 62 is achievable with the right plan in place. Whether you’re planning your Social Security at 62, optimizing your 401(k)-withdrawal strategy, or exploring retirement income options, having a clear financial plan will give you peace of mind. Start planning today to ensure you can enjoy retirement comfortably and securely!
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.
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:
Portfolio Update: Murs and I have recorded our portfolio update for November 25, 2024
Radon and Murs discuss the fascinating journey of transitioning into retirement with special guest Dr. Ridley Moynes, author of The Four Phases of Retirement. This episode dives deep into the emotional, mental, and financial aspects of retirement, addressing the critical question: “Is retirement only about money, or is there more to finding purpose in retirement?”…
We talked to Dr. Riley Moynes, author of The Four Phases of Retirement, and he takes a unique approach to understanding this pivotal stage of life. While money remains a critical component of retirement planning, Moynes emphasizes the need to address the deeper, often-overlooked challenges…..
Retirement. It’s a word that stirs up images of freedom, relaxation, and maybe even the long-dreamed-of beach house. But while most of us imagine retirement as the ultimate escape from work, the reality can be far more complex. Transitioning from decades of structured routines and professional identity to a life of open-ended days isn’t as straightforward as it seems. In fact, retirement is more than just a financial milestone—it’s an emotional, psychological, and social transformation.
We talked to Dr. Riley Moynes, author of The Four Phases of Retirement, and he takes a unique approach to understanding this pivotal stage of life. While money remains a critical component of retirement planning, Moynes emphasizes the need to address the deeper, often-overlooked challenges. What will your purpose be? How will you handle the loss of structure and identity that work once provided? And perhaps most importantly, how can you squeeze all the juice out of retirement? Let’s delve into these four phases of retirement to uncover not just how to retire comfortably, but how to thrive in life after retirement.
Phase One: The Vacation Phase
Imagine waking up without an alarm, sipping coffee on your patio, and spending your days doing whatever you please. This is the essence of the Vacation Phase, the period many retirees envision when they think about retirement. It’s a time of indulgence, relaxation, and often ticking off items on a long-held bucket list.
For most, this phase lasts between one and two years. While it’s a well-deserved respite after decades of hard work, it doesn’t last forever. As the novelty wears off, many retirees find themselves asking, Is this all there is to retirement? This marks the transition to the next phase.
Phase Two: Feeling Lost
The second phase, aptly called Feeling Lost, is when the initial excitement of retirement fades. This stage can come as a shock, particularly for those who assumed retirement would be an enduring carefree coast. According to Dr. Moynes, retirement is ranked among life’s top 10 traumas, often characterized by:
Loss of Structure: Without the daily grind, retirees may miss the routine that once anchored their lives.
Loss of Identity: Work often forms a large part of who we are, and stepping away can feel like losing a part of oneself.
Loss of Relationships: Colleagues who became friends may drift away once the common bond of work is gone.
Loss of Purpose: The sense of contributing to something meaningful can be difficult to replace.
Loss of Power: Retirees who once held significant roles may feel diminished when those responsibilities vanish.
Adding to these challenges are the “three D’s” that often coincide with this stage of life: decline (physical and mental), depression, and divorce. For some, this phase can feel overwhelming and endless, but it’s also a critical turning point. Recognizing these challenges and how they could affect you is an important step on your path to building a fulfilling and comprehensive retirement.
Phase Three: Trial and Error
If Phase Two is the lowest point, Trial and Error is the climb back up. This phase is about exploration—testing new ideas, hobbies, and ways to regain a sense of purpose. It’s not an easy process; retirees may try several activities that fail to stick before finding what truly resonates.
Key strategies for navigating this phase include:
Rediscovering Purpose: Ask yourself, What makes me want to get up in the morning?
Leveraging Past Successes: Reflect on personal victories and identify patterns that could guide your next steps.
Staying Persistent: Trial and error is exactly that—trying and failing until you succeed.
For example, volunteering, mentoring, or taking up part-time work can help retirees reconnect with a sense of service and contribution. The key is not to give up; those who persist are far more likely to transition successfully to the final phase.
Phase Four: Reconnection and Service
The final phase, Reconnection and Service, is the reward for perseverance. Dr. Moynes describes this as the phase where retirees truly thrive, finding immense satisfaction in giving back and living with purpose.
Common ways retirees find fulfillment in this phase include:
Volunteering with charities or community organizations
The defining characteristic of this phase is a commitment to serving others. Whether it’s mentoring, helping a local charity, or being a present and engaged family member, this outward focus brings deep personal satisfaction.
Preparing for the Journey: Practical Tips
Retirement isn’t just about financial planning steps; it’s about planning for a fulfilling life after retirement. Here are some actionable retirement tips to ease the transition:
Start Early: Don’t wait until retirement to think about these phases. Begin considering your unique abilities, passions, and potential challenges well in advance.
Communicate with Your Partner: Retirement can test relationships, especially if one or both partners struggle with the changes. Open communication is essential for navigating this together.
Stay Active: Physical and mental decline is natural but can be mitigated by staying active, both in body and mind.
Seek Support: Whether through books like The Four Phases of Retirement or workshops, don’t hesitate to seek guidance in navigating these stages.
Squeezing the Juice Out of Retirement
Retirement is a journey, not a destination. It’s a series of phases containing their own challenges and rewards. By understanding these four phases, retirees can better prepare for the emotional and psychological hurdles that accompany financial planning. With persistence and a willingness to adapt, it’s possible to transition from feeling lost to living a purposeful and joyful life.
You may have some questions about this topic. Schedule your 15 minute complimentary call with us and learn more about The Four Phases of Retirementhere.
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:
Portfolio Update: Murs and I have recorded our portfolio update for May 6, 2024
In this Episode of the Secure Your Retirement Podcast, Radon, Murs, and Nick discuss downsizing in retirement. Scenarios such as lifestyle preferences and financial needs are what make downsizing a consideration for retirees.
Listen in to learn how we use practical scenarios to help clients…
Nick Hymanson, CFP® from our office, joined us this week on our latest podcast, where we talked about something many people overlook in their retirement planning: downsizing.Nick often meets with clients to review their retirement focused financial plan, making sure…
