7 Key Questions to Answer Before You Retire

August 10, 2022 | David Edmisten, CFP®

If you're thinking about retiring early, congratulations! Many people reach a point where they consider taking a different path in life. With average life expectancy at about 78 years of age in the US, not everyone wants to work 40+ years to only have 12-15 years to do all the things they've put on hold during their working years.

Whether it's spending more time with family and loved ones, trying out a second career, traveling, completing those bucket list items that you've never had time for, or giving back to those in need in a more meaningful way, retirement offers many opportunities to truly live. And more and more people are exploring the opportunity to retire early to pursue what is truly meaningful to them.

If you're considering early retirement, there are 7 key questions you must answer so that you can enter retirement confidently and successfully.  I've listed these key questions below, and we'll explore each question in depth in a series of blog posts.

1. Have I saved enough to retire?

2. Where will my retirement paycheck come from?

3. How will I cover health insurance and medical expenses?

4. How can I save on taxes?

5. How do I protect my retirement savings during market volatility?

6. What do I do if something unexpected happens?

7. What happens when retirement ends?

The 7 key questions to answer before you retire are critical to successfully retiring early. It is prudent for anyone considering retiring early to give each of these questions time and consideration. Just knowing the areas to consider is only the first step. 

Early retirees should ensure they have a thoughtful strategy for confirming they have saved enough to retire; created a perpetual retirement paycheck; have a plan for healthcare; developed ways to save on taxes every year in retirement; an investment plan that allows them to thrive in retirement without worrying about the stock market; have a risk management plan to address the unexpected; and have a proper estate plan to make sure their next egg will provide for their survivors in tax efficient way. 

While some people may have the expertise to craft a plan to address all these areas on their own, most people considering early retirement will want to engage a CERTIFIED FINANCIAL PLANNER™ with expertise in planning for all areas of early retirement to help them build a customized plan for the retirement of their dreams.

To explore each question in more depth, start here.

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About the Author:

David Edmisten, CFP®, is the Founder of Next Phase Financial Planning, LLC, a financial advisor in Prescott, AZ. Next Phase Financial planning provides retirement, investment and tax planning that helps corporate employees retire with both financial and lifestyle security.