Being retired is about financial independence, not aging or even giving up working. There were probably times that you wanted to do something but couldn’t because you didn’t have time. You were too busy working to earn income.
In this phase, your hard work and diligent saving have paid off, you now have both time and the money to focus on what matters most to you. This doesn’t mean you can relax without a care in the world. There are plenty of uncertainties ahead. Here are important issues to address:
Determining Withdrawal Rates Using Historical Data, by William Bengen, Journal of Financial Planning, October 1994
Retire Right: The Critical Importance of Tax Efficient Withdrawal Strategies to Portfolio Longevity, by William Reichenstein, Social Security Analyzer, 2019
10 years before retirement
Develop a comprehensive plan to help ensure you will reach financial independence tax efficiently.Learn about phase 1 →
2–9 years before retirement
Reach a solid financial position through a disciplined approach to managing changes in the years leading up to retirement.Learn about phase 2 →
1 year before and into retirement
Transition to financial independence and fine-tune your plan to prepare for post-retirement taxes and healthcare.Learn about phase 3 →
Stay focused on decisions related to taxes, Social Security, and investments to help ensure your savings last.
You are here
Take an active role in teaching the next generation how to handle wealth and the responsibility that comes with it.Learn about phase 5 →