Retirement & Financial Planning Report

Many people retire as early as they can, start Social Security at 62, and then wonder what they’ll do for the rest of their lives. Money may be a problem, too, with the reduced Social Security you get for starting early. Here’s a plan for meeting those challenges:

* Work until you’re in your 60s. Invest at least 15% of your income each year.

* Keep working in your 60s. Invest less (perhaps nothing at all) and spend the money you previously had been investing. Spend it on some pastime you might like in retirement.

* Delay Social Security. By waiting the longest possible time, until age 70, to start benefits, you’ll get much bigger checks each month once you begin.

Besides the larger Social Security checks, what else does this plan accomplish? By “practicing retirement” while you’re in your 60s, you’ll get an idea of how you’d like to spend

your time after you stop working. When you finally retire, you’ll be ready to enjoy yourself.

Also, you’ll have a shorter life expectancy so you may draw down your portfolio at a faster rate. Instead of taking 4% or 4.5% from your portfolio at 62 or 65, you may feel comfortable withdrawing 5% of your portfolio assets at age 70.