The fact was my dad did not know HOW to retire. Why would he? My dad was proud of the career he had and the things he accomplished. He never thought about retirement and certainly had not established a plan for when that great day would come.
After breakfast, I went home with my parents and I opened up some software I use to assess the assets accumulated, the income needs my parents would have in retirement, and if there were any gaps that needed to be filled.
When I plugged in the data, low and behold the charts all came out green, meaning my dad could retire anytime he wanted to. Realistically, he probably could have retired five years earlier had we established a realistic plan. Once again, I turned to my dad and said, “Why are you still working?”
A week later my dad announced his retirement. I’m happy to say retirement suits him very well.
The moral of the story is that retirement will catch many of us by surprise. With some planning, we can ensure that your retirement is established on your terms. Keep working if you want, do charity work, or travel the world. This is what retirement is about…having the financial freedom to do anything you want and to do it on your terms.
Written by Marc Montini with Montini and Farrah Tax Advisory Group