Choosing when

by Dave Kutcher

Being in the retirement planning business, the question of when to retire seems an obvious topic for us to address on the regular.

The answer to the question is not quite as easy as it may seem and tends to be different for everyone, perhaps, as it should be.

We can get our arms around some important considerations, however, that will help facilitate what should be one of the most enjoyable times of our lives.

When considering the right time for you, there are some questions you should be able to answer.

•Are you retiring alone or together with a partner in life for the foreseeable future?

•What are your dreams and aspirations for the years ahead? Is it “bucket list” time and you are ready to take on all kinds of new adventures or are you content in other ways?

•Where are you going to retire? Moving to somewhere new may bring financial considerations to include State income taxes, as an example. The cost-of-living variance from State to State can be significant and should not be overlooked in the financial considerations you make.

•What options do you have in determining a specific retirement date? Some folks must retire by a certain date, others have options to stay working part-time, and others simply can’t see themselves stopping at all.

•What are the realities in terms of your health, including the same for any partner with whom you may be sharing life. How you plan the next several years may well be shaped by health-related factors- knowing and considering family health history is a good start in these considerations.

•Are there forthcoming events that could impact your decision in either a negative or positive way? As an example, are there parents who may require care and possible financial support that you still need to consider? Or, perhaps, you have an expected inheritance that will significantly change your financial situation.

Those are just a few examples of some questions that should be addressed and the answers to those questions all come back to the elephant in the room, “is there enough money”?

Figuring out whether you have now or will have at some point in the future enough money is not a perfect science. We can’t account for every eventuality, and we all know life brings surprises every day, some good and some not so good. But we have the ability working together to get close enough to provide peace of mind and eliminate anxiety worrying about what might or might not come our way.

The process starts with financial asset inventories and a good understanding of income and expenses, both today and projected into the future. Understanding substantive changes such as health insurance coverage and the like are important here too. Additionally, a serious look at potential risks such as Long-Term Care cannot be overlooked, and measures should be taken to help mitigate those risks if the financial means are there to do so.

Get started now on planning ahead. Plan for as much flexibility as possible and seek balance between what you really want out of your retirement and what is truly realistic when considering your financial situation.

My name is David A. Kutcher, a retired Marine Corp Captain. My business partner in the lower 48 is Richard C. Scott, CLU, LUTCF. For nearly 40 years we have been helping folks with their personal retirement decisions. We encourage you to make an appointment and get ahead of your concerns as early as is possible. You can catch us on the radio every Saturday morning, “Retirement in the Last Frontier”, 8:30-9:30 on AM 650, Keni Radio and on Tuesday mornings, KFQD News Talk Radio AM 750 and FM 103.7. Frontier Retirement, 10928 Eagle River Road; Eagle River, AK 99577, (907) 795-7452.