How Can I Figure Out If I Am Financially Able to Retire Early?

One of the key points in considering retiring early would be taking a look at a good, holistic financial plan—looking at “What are my resources? What are my expenses going to be?” It’s really key in understanding “What is it going to cost me to retire?”

Now, while you’re working, there may be certain expenses that are not going to exist when you’re retiring; and when you retire, there’s going to be other expenses that exist. One of the key ones that has been coming up lately is health care. People are covered by their employer health care plan, and yet now, many times people have to consider taking care of health care themselves up into the age of 65, when they’re eligible for Medicare.

Another issue that one has to look at is “What are my resources? What do I have in the form of pensions? What am I going to have in the form of Social Security? What assets do I have? What’s the risk level that I want to have? What is inflation going to be?” So, generally, a financial plan answers all these questions very accurately.

Parkshore Wealth Management is a family-owned, independent, fee-only Registered Investment Advisor serving the greater Sacramento area with an office in Roseville, CA. We partner with financially responsible individuals and families who are eager to take positive steps that will allow them to use their money to build the life they desire. The firm is led by Harold Anderson, CFP®, and Daniel Andersen, CFP®, both members of NAPFA, the country’s leading professional association of fee-only financial advisors.