How Rich Do You Feel Right Now?
02/01/22 • 5 min
The theme this week on the Retirement Quick Tips Podcast is: Why You Shouldn’t Retire in 2022
Roughly 2 million more people than expected have joined the ranks of the retired during the pandemic, according to The New School's Schwartz Center for Economic Policy Analysis.
2 million extra people are now retired compared to what would be expected since the pandemic began...that’s a lot of people who decided to accelerate their retirement and call it quits over the last couple of years, and that’s in addition to the roughly 2 million people who retire each year in the US.
The typical story behind an accelerated retirement goes something like this: I’m burned out at work, I had a health scare last year, I’m worried about Covid, I don’t want to get vaxxed but my employer is making me....these are all reasons I’ve heard in just the last few months of why some of my clients are retiring earlier than they planned. We run the numbers and find they can afford to retire now, so they put in their notice and call it quits.
And there’s nothing wrong with this. If you would rather be retired and not working anymore and you can afford to retire, great! But I think one of the problems facing early retirees right now, is that they are lulled into a false sense of security because they feel pretty rich right now. Their investment portfolios are fat and growing (at least they were until January of this year), and we really haven’t had a bad recession or a prolonged downturn in the stock market since 2008...that’s 13 years ago now. 13 years of steady growth and the last 3 years have been double digit earning years for most people. Covid counts as a bad recession, but it was over so quickly and recovered so soon that most didn’t feel any real pain. You’re in your peak earning years, likely with the highest income you’ve ever had. Your house is worth way more than it probably should be and so most people close to retirement feel pretty rich right now.
That’s a problem, because if your plans don’t take into account the possibility that we could have a recession and a major downturn in the market in your first couple years of retirement, you could be setting yourself up for a retirement that’s very different from the one you envisioned.
I’ll continue with this topic tomorrow and I’ll talk more about why you don’t want your retirement accounts to lull you into a false sense of security.
That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the Retirement Quick Tips podcast.
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>>> Subscribe on Apple Podcasts: https://apple.co/2DI2LSP
>>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs
>>> Visit the podcast page: https://truenorthra.com/podcast/
----------
Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance
The theme this week on the Retirement Quick Tips Podcast is: Why You Shouldn’t Retire in 2022
Roughly 2 million more people than expected have joined the ranks of the retired during the pandemic, according to The New School's Schwartz Center for Economic Policy Analysis.
2 million extra people are now retired compared to what would be expected since the pandemic began...that’s a lot of people who decided to accelerate their retirement and call it quits over the last couple of years, and that’s in addition to the roughly 2 million people who retire each year in the US.
The typical story behind an accelerated retirement goes something like this: I’m burned out at work, I had a health scare last year, I’m worried about Covid, I don’t want to get vaxxed but my employer is making me....these are all reasons I’ve heard in just the last few months of why some of my clients are retiring earlier than they planned. We run the numbers and find they can afford to retire now, so they put in their notice and call it quits.
And there’s nothing wrong with this. If you would rather be retired and not working anymore and you can afford to retire, great! But I think one of the problems facing early retirees right now, is that they are lulled into a false sense of security because they feel pretty rich right now. Their investment portfolios are fat and growing (at least they were until January of this year), and we really haven’t had a bad recession or a prolonged downturn in the stock market since 2008...that’s 13 years ago now. 13 years of steady growth and the last 3 years have been double digit earning years for most people. Covid counts as a bad recession, but it was over so quickly and recovered so soon that most didn’t feel any real pain. You’re in your peak earning years, likely with the highest income you’ve ever had. Your house is worth way more than it probably should be and so most people close to retirement feel pretty rich right now.
That’s a problem, because if your plans don’t take into account the possibility that we could have a recession and a major downturn in the market in your first couple years of retirement, you could be setting yourself up for a retirement that’s very different from the one you envisioned.
I’ll continue with this topic tomorrow and I’ll talk more about why you don’t want your retirement accounts to lull you into a false sense of security.
That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the Retirement Quick Tips podcast.
----------
>>> Subscribe on Apple Podcasts: https://apple.co/2DI2LSP
>>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs
>>> Visit the podcast page: https://truenorthra.com/podcast/
----------
Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance
Previous Episode
Why You Shouldn’t Retire in 2022
Welcome to a new week here on the Retirement Quick Tips podcast. I’m your host Ashley Micciche, co-owner of True North Retirement Advisors, an independent financial advisory practice managing $340 million in client assets. I’m a Chartered Retirement Planning Counselor, and I started this podcast because I love helping people just like you gain clarity and make a plan for the retirement you envision.
The theme this week on the podcast is: Why You Shouldn’t Retire in 2022
If you’re like the 2 million extra people who retired during the pandemic, chances are you’ve thought about accelerating your plan for retirement, and perhaps you’re planning on retiring this year. Perhaps that’s why you’re listening to this podcast...you want to retire as soon as you can and you want to prepare yourself financially for the transition.
But retirement is a huge decision and one of the most important transitions you’ll ever make, so while there are plenty of reasons to retire in 2022, there are also a few reasons not to, which I’ll cover this week.
We’ll talk about the risk of retiring at the onset of a recession or a big downturn in the market. It’s been a rough start to the year for the stock market, inflation hasn’t been this bad since before I was born, and it’s possible that tough times ahead will continue, making the timing of retirement now perilous. I’ll talk about other considerations for staying put in your job this year and what I think is the #1 reason you shouldn’t retire.
I hope what I have to share with you this week will help you make smart and thoughtful decisions with your retirement. And while I am careful to not lead you astray, personal finance is not an exact science. There is no one-size-fits-all solution for everyone, so I encourage you to disregard anything I say that may not be helpful for you, and to consult your own financial, tax, and legal advisors regarding your own individual situation.
That’s it for today. Thanks for listening! I’m excited to dive deeper into this week’s theme with you! My name is Ashley Micciche...and this is the Retirement Quick Tips podcast.
----------
>>> Subscribe on Apple Podcasts: https://apple.co/2DI2LSP
>>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs
>>> Visit the podcast page: https://truenorthra.com/podcast/
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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance
Next Episode
Don’t Retire At The High Water Mark
The theme this week on the Retirement Quick Tips Podcast is: Why You Shouldn’t Retire in 2022
Today, I’m continuing with yesterdays topic to talk more about why it’s dangerous to feel a false sense of security because your net worth is looking pretty good right now. We’re coming off of an incredibly strong 13-year growth period for stocks without a really painful downturn in that time.
That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the Retirement Quick Tips podcast.
----------
>>> Subscribe on Apple Podcasts: https://apple.co/2DI2LSP
>>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs
>>> Visit the podcast page: https://truenorthra.com/podcast/
----------
Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance
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