When do you plan to retire?
One of the biggest topics in our house right now is when we plan to retire and how we will accomplish this goal. Retirement for us does not mean we will stop working all together, and maybe I shouldn't use the word retirement but instead our goal is to become financially independent. What does that mean? Financial independence means we will have enough personal wealth that our assets generate income that is greater than our expenses. You can make this happen thru a variety of ways, but it's important to bring your expenses as low as possible to make this easier.
The first thing you should do is pay off all of your debt. My readers will know that we did this in 2016, except for the mortgage. We are currently working on our plan to pay off our mortgage before 2025. If we accomplish this on schedule, we will be around the age of 40. Our goal is to become financially independent between the ages of 50-55. This means we need some sort of bridge account from this age to the time we can withdraw from our retirement accounts. So that gives us 10-15 years to invest in multiple avenues so that we can retire without having to work in the normal sense of a 9-5 job 5 days a week.
Have you sat down and looked at your finances to see if you will retire? Do you really want to be working in your 60s just trying to make ends meet? I definitely plan to be working for as long as possible, but I want to be able to work under my terms and because I want to, not because I have to or need to. There is a difference.
One of the tools I like to use is to see where I am on our retirement journey, like Chris Hogan's online tool. You can use this to see how much you need to save up each month to retire in x many years. You can find lots of similar sites like his that will spit out whether you are on track, behind and how much you need to catch up. You can retire no matter how much money you make, as long as you pay down your debts and live within your means. Don't stop dreaming because you think you don't make enough to retire.
For us, I know we are good to go when it comes to our retirement accounts, having zero debt and knowing how to budget. What I am not sure on is our bridge account and how we can make sure we have enough money during those years. So, JP and I have started interviewing different financial advisors to help us navigate this path.
When do you want to retire? Do you think you are prepared? Be sure to subscribe, comment, like and share this post.
The first thing you should do is pay off all of your debt. My readers will know that we did this in 2016, except for the mortgage. We are currently working on our plan to pay off our mortgage before 2025. If we accomplish this on schedule, we will be around the age of 40. Our goal is to become financially independent between the ages of 50-55. This means we need some sort of bridge account from this age to the time we can withdraw from our retirement accounts. So that gives us 10-15 years to invest in multiple avenues so that we can retire without having to work in the normal sense of a 9-5 job 5 days a week.
Have you sat down and looked at your finances to see if you will retire? Do you really want to be working in your 60s just trying to make ends meet? I definitely plan to be working for as long as possible, but I want to be able to work under my terms and because I want to, not because I have to or need to. There is a difference.
One of the tools I like to use is to see where I am on our retirement journey, like Chris Hogan's online tool. You can use this to see how much you need to save up each month to retire in x many years. You can find lots of similar sites like his that will spit out whether you are on track, behind and how much you need to catch up. You can retire no matter how much money you make, as long as you pay down your debts and live within your means. Don't stop dreaming because you think you don't make enough to retire.
For us, I know we are good to go when it comes to our retirement accounts, having zero debt and knowing how to budget. What I am not sure on is our bridge account and how we can make sure we have enough money during those years. So, JP and I have started interviewing different financial advisors to help us navigate this path.
When do you want to retire? Do you think you are prepared? Be sure to subscribe, comment, like and share this post.
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