Some people know exactly when to quit working. They know exactly the right time exit stage right. For others, like some professional athletes that come to mind, just can’t seem to make up their mind. The decision isn’t so easy.
Throw in all the complex financial and personal factors, it becomes increasingly harder to know.
If you’re one of those individuals or couples on the fence right now, you’re not alone. Here are a few other factors that may make you think it may not be the right time to retire.
Sign #1 You’re planning on working part-time
More and more retirees are working part-time these days. Now whether that is for the extra money or just for something to keep their minds alert I’m not sure. However, with a tough economy you shouldn’t count on finding that part-time job.
You may want to stick with that full-time job a little longer, if you are fortunate enough to have a good job. You could continue to earn higher pay in your current role, versus some menial task like asking, “do you want fries with that?” Job satisfaction may be a big one for some of you.
Sign #2 Your spouse doesn’t want you to retire
I think my Mom would have gone insane if my Dad had not found some work once he retired as a teamster. They would have fought all the time with him being at home. On the same token, my Dad is one of those guys that feels he has to work. He just likes having something to do.
So make sure your significant other is accepting of your retirement.
Sign #3 You have nothing to do
Let’s face it, if you retire and have no hobbies or know how to fill up all those hours of the day, you’ll go crazy! You’ll wish you were at some of those boring staff meetings, or listening to idle gossip over coffee. I see new retirees trying to figure out what to do next. Men are especially guilty of this. We have our identities as people so tied to what we do for a living, it’s hard to separate it at retirement.
Bottom line, if you have no idea what you’ll do with the time on your hands, that may be a sure sign it’s not time to retire.
Sign #4 You’re counting on your investments (oh, Lord!)
I really love those commercials, that ask “What’s your number?” So many people focus on how much money they have saved. You don’t retire on that number, you retire on the income that your money generates. So if you haven’t saved enough, don’t count on your stock picking skills of your broker or yourself to bail you out.
The most successful retirees I have encountered, saved their money, lived within their means and kept their withdrawal rates on the portfolio relatively low. There is no magic formula or number or investment that will make a bit of difference.
Sign #5 You are still a money mule
Money mule is my own personal joke. It refers to someone who still has a burden of financial obligations. So if you have too many financial obligations, now may not be the time to retire. Here’s a few examples:
Are your kids still in college and living at home?
You co-signed for someone else’s care or home?
Does your house needs major repairs?
Do you have credit card debt, a large mortgage, car loans or school debt?
We don’t fully consider all the little things that could get in the way of sipping that cocktail during your most recent cruise to the Caribbean. If you aren’t sure it’s your time to retire, write me at david@lexwealth, or call me at (859) 225-2596 and we’ll work through it together.