LEXINGTON, Ky. (WKYT/SWD) - Retirement is a joy for some and worrisome for others. Matt Dicken of Strategic Wealth Designers has tips to help you know when you’re ready to retire.
“The number one thing people in retirement are concerned with is ‘Will I have enough?’ No matter if someone has a few $100,000 \saved or several $1,000,000 saved for retirement, it is a very real concern for people,” Dicken said. “I’ve never seen anyone who gets excited about slashing their standard of living after retiring but often times if people don’t plan that’s exactly what they have to do.”
There are multiple factors to consider before deciding to retire. The most important, Dicken says, are considering if you have the freedom to decide to retire and determining if you have enough money saved.
“Having a financial plan that you check in on at least every 6 months is an important start in knowing where you stand,” Dicken says.
Another factor to consider is whether or not you enjoy what you do.
“We see clients all the time who are 70 or 75 that absolutely love what they do and have no interest in retiring because they get great fulfillment from their work,” Dicken says. “Others are done at 55 and tell us they don’t know how they had time for work because they have so much going on in retirement,” says Dicken.
When considering whether or not to retire, there are also some common mistakes you should try to avoid.
“The number one mistake we see as people get closer to retirement is that they have too much of their portfolio exposed to risk,” Dicken says. “You need that nest egg to last during retirement and folks who have experienced 2000 or 2008 saw their portfolios devastated, so we always encourage people moving to a safer portfolio as they get closer or are in retirement,” adds Dicken.