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When is the Worst Time to Retire

Minute video: Do not let timing ruin your retirement.


When is the worst time to retire.

Many people seek the optimal time to retire. Unfortunately, there is also a terrible time to retire.

Here we will cover a few factors to consider when deciding to retire to avoid the “worst” time to retire.

First, if you retire and you will not have medical coverage, this is a clue that it is not the time to retire. This is a huge risk. Without insurance, you are one accident away from insolvency or a severely underwhelming retirement. And if you retire and do get insurance on the open market, you may find the cost essentially unaffordable and cause a catastrophic meltdown of your assets.

Second, you have no real source of income to meet your critical needs. As mentioned in an earlier blog, Social Security retirements are unlikely to be enough. If that is the case, where is the rest coming from? It is incredibly surprising how fast a “nest-egg” can be depleted.

Investment returns go sour. Investments that can vary in value are subject to the risk that they will perform badly at the wrong time. So, while your investment nest egg loses value, you will compound the loss by drawing living expenses. This a double whammy from which your portfolio may never recover.

Imagine retiring in January 2000. Within 10 years the account could easily be down 50% in an all equity portfolio - and that does not include any withdraws along the way. If in your estimates you barely had enough to retire in 2000, then you surely are sunk in this scenario. So, the time to think twice about retirement is when the market is high.  Or if you elect to retire, make sure you planned on a low rate of return.


This video and text is for information use only and is based on information believed to be true. Much of the information is readily available, but some is drawn from Advisor Products articles. The reader acts on these ideas at their discretion and should consider consulting an accountant, financial advisor, or attorney. No promise is made that an idea or concept is appropriate or would work well for the reader. This is not an offer to provide legal advice or act as an attorney. Contact Steven Erickson JD, MBA, CFP(R), Accredited Wealth Management Advisor, Chartered Retirement Planning Consultant at 573-874-3888 This email address is being protected from spambots. You need JavaScript enabled to view it. , if you have questions or to set an appointment. Serving Clients in Columbia, Jefferson City, and the surrounding counties.


Social Security and Retirement Planning
When is the Best time to Retire

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Tuesday, December 11 2018