Lately I’ve had several conversations with professionals who are wondering: “Can I retire when my child heads off to college, or when they graduate?”
These conversations tend to include a desired retirement age that lands between 55 and 59, which for many is pretty young, however these folks have all built substantial savings and hope to really enjoy this active time of life.
A quick example includes clients Mike and Meghan. They live in Raleigh, NC, and are in their early 50s. Mike has spent years in corporate finance, while Meghan has built a successful career in healthcare. They’ve been diligent savers and are at a point today where they’re investing six figures annually.
Their daughter, Emma, is in high school, and they’re starting to see the light at the end of the tunnel—financial independence might be within reach.
They don’t necessarily want to quit working cold turkey, but they want options. Maybe one of them retires while the other shifts to a less stressful role. Maybe they both transition to part-time consulting; they’re not exactly sure what it looks like, but their bottom line is to make work optional.
To help help them map their path to financial independence, we focused on two critical elements:
- Where they are today – We sketched out their current financial position and projected where they could be in the near future (2, 3, 5 years).
- Distribution strategies – We mapped out their three (3) tax bucket financial strategy (taxable, tax-free, and tax-deferred accounts) to optimize withdrawals and minimize taxes in the future.
Following our conversation, Mike and Meghan enjoyed clarity and confidence. They were no longer guessing—they had a game plan. And here’s the thing, their next chapter didn’t necessarily mean they stop working entirely, rather it was that they achieved “Financial Independence.” Mike and Meghan could now make decisions based on what they want to do, no longer tethered to the 9 to 5 paycheck.
I hope you find this helpful and that some of you may be able to relate. Retirement doesn’t have to mean: Done work, 66, collect my checks, and that’s it. Instead, the goal is financial independence, and if full retirement is what that looks like, great! But for others it may be just having the ability to explore your options.
If you or someone you’re close to is a high-achieving professional that could use help aligning their finances and establishing a financial plan that leads toward financial independence, please reach out to us, we’re accepting new clients and eager to help.
–Nic
