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After years of anticipation while you’re in the workforce, approaching retirement can be exciting. It can also be a very intimidating time filled with unknowns and anxiety. However you look at this life transition, people tend to end up at the same question: “How do I know when I’m ready to retire?” Here are three things to keep in mind as you work to find an answer.
Set Clear Goals
The first step may start with taking time to pause and turn inward. By asking yourself “What do I want my retirement to look like?” you can find an answer as unique as your fingerprint.
“What people want out of retirement varies from person to person, depending on their personal goals and aspirations,” said JNBA Financial Advisors Noel Silker, CFP®. “For example, some might consider the ideal retirement to include selling their primary residence and retreating to their lake cabin. For others, it may be selling off every material belonging and traveling the world.”
Work with a Professional to Build a Plan
Just as there are endless ways to envision this phase of life, there can be as many ways to get there. The size of your bank account is one factor, but there are many other considerations. Determining the optimal time to tap into a 401(k), Social Security benefits, or a pension can all influence when you’re financially ready to retire. A financial advisor can give clarity to the nuances of these opportunities and strategies.
“We’re constantly looking at financial plans and the retirement projections that we develop for clients,” says Stephanie Rossi, CFP®, a Senior Advisor at JNBA. “We reassess regularly and stay vigilant because it’s always a work in progress.”
Start Early
Starting the conversation sooner rather than later can help, too. By consulting with a professional advisor early in your retirement planning journey, you could add significant time to growing your nest egg. For example, starting planning in your 30s instead of your 50s can add decades of opportunity.
“Our goal is to help couples or individuals really think through and try to visualize what this next phase of their life could entail before they get there,” says Elise Huston, CFP®, Advisory Services Manager at JNBA.
Do you have other life challenges on your plate? In JNBA’s new podcast series, Navigating Life Transitions, financial advisors and experienced professionals come together to discuss navigating life’s biggest challenges and changes as well as opportunities and decisions. From a growing family to losing a loved one, promotions to retirement, all of these topics are on the table, and we tackle each with candor and thoughtful considerations.
About JNBA
With offices in Minneapolis, Duluth, and Bonita Springs, Florida, JNBA Financial Advisors is an independent fee-only wealth management firm driven to help guide people through life’s most important decisions through an advice driven by advocacy® approach. Please see important disclosure information at jnba.com/disclosure.
