Laurence Hale, AAMS®, CRPS®
Principal/Managing Partner, Investment Advisor & Chief Investment Officer
Retirement isn’t what it used to be. Far from sitting in a rocking chair on the front porch, retirees who’ve planned well for their future are busy living well in retirement, whether that means pursuing their passions, traveling, or even staring up the dream career or business they’d always wanted to try.
But if you haven't saved enough to support those goals, or you're considering retiring early, you could be facing some significant risks. Here's what to be aware of, and how hybrid retirement may be the answer to overcoming those challenges.
By saving and investing from as early an age as possible, some people can build up enough money to leave the workforce in their 50s, 40s, and even 30s. Early retirement may seem like the ultimate goal and a sign of wealth, but it can also sometimes result in retirees having to live off of a much smaller amount of money than if they were to keep working just another five or ten years.
Others experience a loss of purpose along with a sense of loneliness and isolation. Quitting your job early can be fulfilling if you know others who’ve done the same, but it can be hard to find people to pass the time with when the norm is to work 40 hours each week.
This is where hybrid retirement can help. Rather than leaving the workforce completely, many people look for new sources of income that prevent them from eating into their savings or dying from boredom before they get to spend it all.
But before you hop into a hybrid retirement, here's what to consider...
Find a Job You’re Not Desperate To Retire From
If you’re eager to venture down the early retirement route, question whether quitting work completely will actually solve your problems. This is important whether you work a 9-5 office job, do long shifts in a hospital or you’re a stressed-out business owner looking to sell your company and have nothing more to do with it. Is there a chance you’re simply in the wrong industry?
Don’t Sacrifice Everything For a Future That’s Not Guaranteed
Sacrificing everything in the short-term to save for early retirement could turn out to be one of the biggest mistakes of your life. Retirement saving is crucial, but it’s important to live in the present and make use of the time we have now. Nothing is guaranteed and postponing all enjoyment for a later date can be extremely risky.
Try to find ways to live in the present and spend money now, even if it means adding a few more years onto your career. Surely the whole point of money is to spend it on positive experiences, rather than hoarding it for decades?
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The Hybrid-Retirement Model Can Be Molded To Suit You
The best thing about hybrid retirement is that you can mold it around you and your goals. It can look different from one person to another. All you need to do is identify the aspects of your work that you love, while getting rid of the parts that make you long for the day you can flip your desk and leave for good.
Perhaps you love the industry, but you hate the commute? Maybe your boss drives you up the wall, but you love working as part of a team? These are just a few factors to consider when working out what your future will look like.
If you’re a business owner, achieving hybrid retirement might simply be a case of stepping away from the office and outsourcing your day-to-day tasks without selling the company completely. This could provide you with passive income which allows you to focus on other projects.
Some people want to keep working in their later years without having the stresses and responsibilities that can come with traditionally well-paid work. Working in a coffee shop or decorating your neighbors’ houses could keep you busy without forcing you to think about work when you’re trying to unwind each evening.
How Achievable Is It?
If you’d like to explore the hybrid retirement route, working through your options can provide you with a sustainable and realistic action plan. You can take the date you’d like to retire along with your income and expenses to help you determine how much you need to save, and how much you’ll need to earn once you’re semi-retired.
With the help of good financial planning, you can mold your life to look exactly how you want it to, while making sure you live in the moment and don’t miss out on memorable experiences today. Here at Weiss, Hale & Zahansky Strategic Financial Advisors, we can help you make this retirement plan a reality using our Plan Well, Invest Well, Live Well strategic financial planning process. Contact us to get started.
Presented by Principal/Managing Partner Laurence Hale, AAMA, CRPS®. Securities and advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. 697 Pomfret Street, Pomfret Center, CT 06259, 860.928.2341. http://www.whzwealth.com These materials are general in nature and do not address your specific situation. For your specific investment needs, please discuss your individual circumstances with your financial advisor. Weiss, Hale & Zahansky Strategic Wealth Advisors does not provide tax or legal advice, and nothing in the accompanying pages should be construed as specific tax or legal advice.