Jan 23, 2020
In this episode of Inside the Plan with the 401(k)
Brothers, Bill Bush and Andy Bush, advisors at Horizon
Financial Group, address a question that often comes up when they
are working with their clients, can I retire now? In many cases,
this involves early retire. Bill and Andy offer tips on how to
prepare for making this pivotal financial decision.
- 0:49 – Customers often ask Bill Bush and Andy Bush about
whether or not
they can retire early.
- 1:30 – What is the number one thing to think about when
about retiring now?
- 3:32 – One of the common mistakes people make is filing their
security too early.
- 4:20 – What happens if you take on a new job after
- 5:03 – If you retire too early you have less time to save
- 6:00 – How early can you access your 401(k)?
- 7:12 – You might need to withdraw less money so that you don’t
- 8:18 – What do statistics says about withdrawing 4-5% against a
portfolio and a 40% bond portfolio with a 6-7% return?
- 9:34 – Healthcare is an expense that increases as you get
- 10:41 – If you have an HSA, make tax-free contributions but
- 12:20 – Have your house paid off before you retire.
- 13:02 – What happens when you retire early and you get
3 Key Points:
- The full social security age is 67.
- 40% of working people tend to file their Social Security early
at age 62.
- There is a 50% chance of a married couple that is 65 that one
of them lives to be 90.
- “If you are retiring early, at say 62, which is early by the
way when it comes to social security, what it means is a reduced
income from social security and it is pretty much locking that in.”
– Andy Bush.
- “Let’s say you do retire, you take social security at 62, but
then for whatever reason you get a job. Now you are making income.
Now there is that income test that kicks in and you could actually
further reduce your payout.” – Bill Bush.
- “If you do have to access 401(k) IRA, 59 ½ is your magic
number.” – Bill Bush.