Contemplating Early Retirement? Here Are Some Considerations.Retirement Planning During COVID-19
The last few months have been strange and unpredictable for most of our country. It’s no surprise that many find themselves contemplating retirement, either by their own choice or due to the circumstances surrounding the current times. The sudden loss of a job or corporate position due to COVID-19 cutbacks, a decrease in your own business activity, or just the tedious nature of working and conducting business in a pandemic have pushed many to the retirement brink.
While the option of retirement may be appealing, there are often blindspots that retirees miss that leave them far behind their goals and visions for the future. Retired living can mean a plethora of different life and expense changes, such as insurance costs, Social Security, or deductibles. Many retirees do not have a clear picture of what budget changes they need to make, whether or not to downsize, what kind of withdrawals to activate on their investments, adjustments for inflation, tax impacts of withdrawals, and what retirement can mean for a spouse or dependents.
Early retirement package offers are also on the rise across the nation. Even if these may seem ideal from an initial look, it is important to scrutinize these offers thoroughly, and meet with your advisor on how to analyze them. The method of payouts, the impact it might have on your spouse, the limitations - these are all important considerations that you should be aware of first.
For these reasons, and many more, is why it’s important to speak to your Certified Financial Planner (CFP®) about your retirement plans or concerns in light of COVID-19. You may need to re-strategize, adjust your expectations, or even change your retirement timeline entirely. While delays may be disappointing, it is worth it to avoid longer lasting financial consequences.
Quest Financial Services strives to provide the most personalized and careful guidance to clients, especially on the cusp of these big decisions. Get in touch with us to let us help you reach your wealth and retirement goals.
To learn more about Quest Financial Services’ founding member and managing partner Robert Cepeda, CFP®, BFA™, please click here.