Inside The Plan

Hey, Can I Retire Now?

Jan 23, 2020

In this episode of Inside the Plan with the 401(k) Brothers, Bill Bush and Andy Bush, advisors at Horizon Financial Group, address a question that often comes up when they are working with their clients, can I retire now? In many cases, this involves early retire. Bill and Andy offer tips on how to prepare for making this pivotal financial decision.

Episode Highlights:

  • 0:49 – Customers often ask Bill Bush and Andy Bush about whether or not they can retire early.
  • 1:30 – What is the number one thing to think about when thinking about retiring now?
  • 3:32 – One of the common mistakes people make is filing their social security too early.  
  • 4:20 – What happens if you take on a new job after retirement?
  • 5:03 – If you retire too early you have less time to save money.
  • 6:00 – How early can you access your 401(k)?
  • 7:12 – You might need to withdraw less money so that you don’t run out during retirement.  
  • 8:18 – What do statistics says about withdrawing 4-5% against a 60% stock portfolio and a 40% bond portfolio with a 6-7% return?
  • 9:34 – Healthcare is an expense that increases as you get older.
  • 10:41 – If you have an HSA, make tax-free contributions but don’t use them.  
  • 12:20 – Have your house paid off before you retire.
  • 13:02 – What happens when you retire early and you get bored?

3 Key Points:

  1. The full social security age is 67.
  2. 40% of working people tend to file their Social Security early at age 62.
  3. There is a 50% chance of a married couple that is 65 that one of them lives to be 90.

Tweetable Quotes:

  • “If you are retiring early, at say 62, which is early by the way when it comes to social security, what it means is a reduced income from social security and it is pretty much locking that in.” – Andy Bush.
  • “Let’s say you do retire, you take social security at 62, but then for whatever reason you get a job. Now you are making income. Now there is that income test that kicks in and you could actually further reduce your payout.” – Bill Bush.
  • “If you do have to access 401(k) IRA, 59 ½ is your magic number.” – Bill Bush.

Resources Mentioned: