Happy Monday. Thinking about retirement? Think again. Seriously. Because it’s one of the most important financial decisions you’ll ever make. Sure, Your Survival Guy is probably younger than most of you and has decades of work ahead of him. But I know this from speaking with you: You don’t know what retirement feels like until you’re in it. Period.
In my conversations with you and from my observations, some retirees jump headfirst into their golden years and love it. Others figure out what works for them and adjust, while others choose to go back to work. But here’s the deal. It’s downright expensive to retire, and you better have your money in place before you choose to do it.
I hear the stories. I read about junk bonds yielding over 10% and how retirement income can be easy. That’s not the way Your Survival Guy would do the retirement math. I know from many trips to Paris that figuring out how you’re going to pay for a trip while breaking open a warm croissant at Le Bristol is no way to plan. You need to know what you can afford years before you need it.
Being “needy” is no way to live, never mind retire. You want instead to figure out what you can afford and spend with the peace of mind and comfort you deserve. Your Survival Guy would first point you to the risk-free rate of return. Then you can do the back of the napkin (serviette de table) math from there.
Action Line: Think about what you can afford. Run the numbers. Then add about 30%. Retirement ain’t cheap. Let’s talk when you’re ready.
E.J. Smith - Your Survival Guy
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