Can you really retire at 50?

For many people, early retirement can feel out of reach. But retiring earlier than the traditional retirement age starts with understanding what you want retirement to look like, what it will cost, and what needs to happen financially to get you there.

In this episode, Greg Welborn of First Financial Consulting walks through seven key areas to consider when planning for retirement at age 50.

The first step is defining your retirement goals. Retirement looks different for everyone, so your plan needs to account for your normal living expenses as well as the things you hope to do with your time—whether that means traveling, giving to family or charities, pursuing hobbies, or simply maintaining your preferred lifestyle. Where you plan to live can also have a significant impact on how much retirement may cost.

Greg then discusses assessing your current financial position and comparing it with where you need to be in the future. That includes looking at your assets, income, cash flow, and the size of the nest egg you may ultimately need to support your retirement.

Building that nest egg is only part of the equation. Your retirement plan will also depend on the investment returns you assume along the way, which makes diversification and an appropriate mix of investments an important part of the planning process.

Once you retire, those assets need to help generate a sustainable income stream. Greg explains why general withdrawal rules can be useful as a reference point, but shouldn’t replace planning based on your own circumstances, spending needs, portfolio, and retirement timeline.

Healthcare is another important consideration for someone retiring before traditional Medicare eligibility. Greg also emphasizes the value of bringing the different pieces of your plan together, monitoring your progress over time, reducing inappropriate debt, and keeping expenses aligned with the retirement plan you’ve created.

Early retirement requires coordination across savings, investments, income, healthcare, debt, and spending. The earlier you begin putting those pieces together, the more clearly you can see whether retiring at 50 fits your financial situation.

Topics discussed:

• Setting goals for an early retirement
• Determining what retirement may cost
• Assessing your current financial position
• Calculating the nest egg you may need
• Investing and building retirement assets
• Creating sustainable retirement income
• Retirement withdrawal strategies
• Planning for healthcare before Medicare
• Managing debt and expenses
• Monitoring and adjusting your retirement plan

Timestamps

00:09 — Can you retire at 50?
00:34 — Step 1: Set your retirement goals
01:09 — Step 2: Assess your financial readiness
01:44 — Step 3: Build your retirement nest egg
02:18 — Step 4: Create a sustainable income stream
02:59 — Step 5: Plan for healthcare costs
03:09 — Step 6: Build a comprehensive retirement plan
03:29 — Step 7: Reduce debt and manage expenses
03:50 — Working with a fiduciary financial advisor

Learn more about First Financial Consulting: How to Retire at 50