Can I Retire Early in Huntsville?

If you are asking that question, you are probably ready for the next stage in life in Huntsville beyond your current job. You’re not alone, according to recent economic reports, millions of American seniors have left the workforce for retirement on the heels of the Pandemic.  Let’s put aside historical thinking around retirement as playing golf and traveling the world. Don’t worry, you might be able to do that too. But for now, lets re-frame “retirement” as “the next step in our journey.” Think about it as a transition as opposed to suddenly stopping all economic activity. Let’s think about how to retire early.  Now that we have a framing, we can work through the question.

1) What’s your purpose. How do you want to spend your time going forward?

Moving to the next stage of life beyond work is exciting because you can spend your most valuable asset, your time, on whatever projects you choose. Its important to consider how you want to spend your time before you decide to leave your job. Retiring without a plan may seem great for a few months, but eventually many retirees report feeling bored, or worse, depressed. If you are prone to take on activity to fill the void, you will take the first offers that come your way instead of purposeful activities that bring fulfillment. The best way to set yourself up for a successful retirement is to really think about what matters to you, and how you can invest your time in that activity, whether its paid or unpaid.

2) Will your current assets support your living expenses over the next 30+ years?

If you are not confident in the answer to this question then seek guidance from a financial planner. If you would like to discuss with us, we would be happy to schedule a call. If you are not sure that your resources will hold up, don’t worry, you can still move on the next phase of life. According to a 2021 Simplywise study on retirement, 71% of Americans plan to continue some form of work in retirement. If your current career aligns well with your purpose, then perhaps you can reduce your hours or become a consultant. If you want to change direction entirely, there are many non-profit, educational institutions, and even government organizations in Huntsville that may be able to pay you while still allowing you to step back from your current full-time hours. Working part-time may be a great financial and personal bridge to full retirement. And you won’t be alone!

3) How will you cover your healthcare expenses?

We find that clients often underestimate their healthcare expenses when they have utilized employer provided health insurance in the past. You need work through the cost for Medicare (age 65+), Medicare Advantage and Supplemental “Medi-gap” insurance and your projected out-of-pocket expenses.  Each Medicare approach has pros and cons and the right choice differs by individual. If you are not yet eligible for Medicare, you may consider working part-time to receive benefits to cover healthcare costs.

As you think about these questions, your may realize that the question is not “CAN” I retire early; but “HOW” should I retire early. If you would like, schedule a call to discuss. We will happily serve as your guide as you consider retirement in Huntsville. Let’s get you on track to invest your most valuable asset, your time, into something meaningful.