5 Reasons to Retire as Soon as You Can

we all had a time where it actually starts to cost us more to keep working than it does to retire but how do we know when that time might be well in today's video I'm going to share with you five reasons why it might be time for you to retire hey everybody I'm James canole founder of root financial and I'm here to teach you how to get the most out of life with your money so there's obvious reasons why you might need to keep working and many of those reasons are Financial there's income there's benefits there's 401K etc etc but at some point the marginal benefit of those extra dollars begins to fade and actually starts to cost us to keep working that's the case when one of these five factors is starting to come into your life so what are the five reasons it might be time for you to retire well reason number one is when you start to realize that time is the only non-renewable currency there's always more money to be made even if it's difficult there's a way to make more income there's a way to make up from Financial loss money is something there's always more of even if it's difficult to actually achieve time on the other hand time is something we can never get back in the earlier on in your career you are the more money matters the less time does you have a lot more time a lot less money so the focuses on growing your money and you'll sacrifice time to do so but at some point once you've accumulated that money once you have that enough time becomes a much more important resource time becomes that thing that you realize is non-renewable I worked with a lot of people who retired and they retired later than they wanted to because they just never got around to doing it but they felt like they had all the time in the world once they retired and tragically within a couple years sometimes even in a couple months after retiring these people fell ill and some of them even passed now in those final days they weren't thinking about having more money they weren't thinking about their portfolio they weren't thinking about the last bonus they received they were thinking about time they're thinking about what I would do to get more time now this seems dark this seems somber but this is really one of the things I encourage people to really think about when it come comes to retirement yes you need to be financially ready yes you need to make sure that you're prepared but once you're there the more we put off retirement the less time we have and you realize at some point sometimes too late that time is never something you can get back so you do have to strike a balance this isn't to say everyone can just get up and go retire and have all the time in the world if you don't have the financial wherewithal to do it you're not going to be able to do much with that time that you do have however once you are ready once you're in a position to do so understand how much more important that time is that time to do what you want to do that's something you'll never get back the money is something that will always be there granted it may be difficult granted it might not be easy but there's always ways to make more of it or to recoup any losses there time is a different story so remember that time is a non-renewable currency in the remembering of that or the awareness of that can hopefully drive us to ensure that we're retiring when it's appropriate as opposed to continuing to work definitely the second reason it might be time to retire is you may need to improve your health now imagine the average person who's a year away from retirement and they've spent 40 years grinding they spent 40 years putting in overtime they've spent years paying off a mortgage raising a family having children doing all these different things the average picture of that person is someone who's overstressed overworked burnt out barely getting by so by the time the average person actually reaches retirement there's just a lot of burnout a lot of stress and that stress leads to negative Health outcomes it could be depression it could be anxiety it could be stroke it could be cardiovascular issues there's all kinds of negative Health impacts that stress can cause so what we have to realize is typically those later working years when we're in our Peak earning years we also might be in our Peak stress years so if you're in a job that's demanding a lot of you realize it's demanding more than just your time your health is an important aspect and if your health Theory rates after a certain point it can become very challenging if not impossible to fully recoup that so the last thing anybody wants is to retire but then just sit around because their health isn't good enough for them to be able to do what they want to do and enjoy what they want so it might be time for you to retire if you're realizing work isn't just taking your time it's also starting to take your health retirement might be a way to get your health back you have time you have the availability to focus on reducing stress to focus on exercising to focus on eating right to take care of yourself so you can actually enjoy that next season of your life and do everything you want to do the third reason it might be time for you to retire is to spend more time with family and friends now the quality of our relationships is largely what determines the quality of our lives but think about the average person working it's assume you work 40 50 hours a week let's assumed there's a few more hours that you're commuting let's assume there's a few more hours where you're running errands where you're cleaning up in the house where you're doing the things that need to be done to live how much time is left for friends and family how much quality time is left for friends and family now before you start thinking I'm anti-work I'm very much not anti-work I love work I love my work I know a lot of people love their work there's just that balance that we need to strike between how can we do something we love something that's productive something that's fruitful but make sure it's not holding us back from the things that matter whether that be Health whether that be friends and family whether that be other factors so back to this reason focusing on friends and family when you look at it too often people say yeah you know what I just don't have the time to stay in touch with that friend I don't have the time to call my sibling or my parent or my children or whatever it might be because work is so demanding and life is so demanding well if you're at the point where it doesn't need to be so you're financially prepared to not need work ask yourself what's it cost to me in terms of my relationships with friends and family my time that I can spend with them more the energy I can devote to them if it's starting to detract from that it might be time for you to retire the fourth reason it might be time for you to retire is you have to realize your best years are limited a lot of people maybe they're 62 years old and they say okay I might live till I'm age 92. I've got 30 years left seems like a lot of years but we have to understand not all those years are created equal you're going to have a lot more energy A lot more Health a lot more ability to do what you want to do from say 62 to 65 than you will from 82 to 85. so it's not really 30 years that you have you might have 30 years of lifespan but how long is your health span how long will you have your health how long will you have your energy how long will you have that ability to do what you want to do whether it's travel or activities or engage in the hobbies that you have it's probably not for the next 30 Years so I see a lot of people at 62. they might be in a good position to retire but then I'm just going to keep working I want to hit 70. I want to Max my social security benefit I want to put a few more bucks away and I'll still have a good amount of time after that or you might but realize age 62 to 65 might be the best years then 65 to 70 might still be really good years which is a tad bit less good then 70 to 75 and what we start to realize is yes there's still life but the quality of that life might start to decline especially to go back to my last point if more work is detracting from your health and it's actually taking years off of your life so when we're looking at retirement and understanding okay I might have another 20 30 plus years realize they're not all created equal and even if you just work another two three four years those might be the best two three four years of your life how do you spent them doing other things obviously everyone's different with this and obviously as I said at the beginning we need to balance this this isn't to say everyone should just go retire a lot of people aren't in a financial position to do so but once you've reached that position ask yourself what's this cost to me in terms of the best years of my life and should I be retired and pursuing the things I actually want to be doing and the fifth reason it might make sense to retire now is you're financially ready now I've been touching upon this the whole way but what I often see is it's very difficult for someone to spend 30 35 40 plus years in the workforce and then just automatically say you know what it's time for me to retire that work that thing that we're doing 40 hours a week 50 hour hours a week week after week after week year after year after year that becomes part of our identity and even if we don't love it and even if it's adding stress and taking away from friends and family and taking away from Health it's sometimes scary to think about not doing the thing that we've been doing for the past several years and Decades of our life so it's very easy to become a byproduct of the habits that we've had over the course of our lifetime but if we start just working for work's sake we have to realize there's a huge cost to that if you're financially able by financially able I mean you have enough in your portfolio or social security or pension or whatever income sources you have to maintain the lifestyle you want to maintain if we continue working after that not because we love work but because it's what we're used to it's what we've always done and we don't know what we would do without it that becomes a real issue so make sure you never fall into the Trap of work for work's sake there should be a purpose to work and that purpose could be work itself you may love work it may be fulfilling it may be a productive Outlet or creative outlet for you if so wonderful that should be something you continue doing as long as you possibly can assuming you're still able to focus on things like friends and family on your health on the activities that excite you but make sure that works fitting into your vision of your ideal life make sure work doesn't become your life at the expense of everything else so these are five reasons it might be time for you to retire right now if you're resonating with any of these or if you're saying yeah that makes a lot of sense but you're thinking what about that last Point how do I know if I'm financially ready to do so well made a video that covered exactly that so if you're wondering how do I know if I'm financially ready be sure to check out this video right now where I'll walk you through once again I'm James Knoll founder root financial and if you're interested in seeing how we help our clients at root Financial get the most out of life with their money be sure to visit us at www.rootfinancialpartners.com

Channel: James Conole, CFP®

Views: 619,676

Keywords: investing, retirement planning, tax planning, financial planning, retirement, personalfinance, taxes, dividend investing, financial planning at 50, how do I retire?, long-term investing, financial planning at 60, roth conversions, roth ira, IRA, individual retirement account, benefits of investing, pros and cons of investing, donor advised fund, financial education

Id: rgT-pC6JHJk

Length: 10min 44sec (644 seconds)

Published: Sat Mar 25 2023