Retirement planning

Personal factors, your tax bracket, expected future income and when you plan on retiring all play a role. The answer isn’t as simple as playing the tax bracket game (convert be low a certain tax bracket only).

Other considerations can affect you taxes down the road. Even Medicare premiums are an issue. A high required minimum distribution (RMD)(currently starts at age 72, but pending legislation will gradually raise that to 75, if passed) can cost more than just a tax bill. It can also increase your cost for Medicare.

The best way to handle a Roth conversion discussion is to break it into two parts: the conversion phase and the retirement phase.

The early retirement community is alive and well in one of the greatest economic booms of our age. The government is working hard to create more jobs while the people want meaningful work and more time with family, friends and for pursuing other personal interests. Except for the most hardened, retirement is a goal that will be reached eventually whether you are ready or not.

The early retirement community has a lot to teach to those racing toward the finish line. There are serious risks involved, however. Without serious planning and thought, retirement can be hell on earth. Sitting around all day without meaning or purpose saps all joy and pleasure. Retirement is meant as a tool to explore wonderful new worlds filled with beauty and awe. Dream travel and the business you always wanted to start are now possible. You’ll have time to write that book; start that podcast; climb that mountain. Or, it could be anxiety, loneliness and fear.

Over the years I have retired many times. So have you.

The demographic of this blog leans heavily toward early retirement. This has always bothered me. I always feel like I have to be an apologist for all the folks enjoying their work. Life would be less bright for me and my brethren if we were forced to do what we enjoy most, less. Why is this? What is the hang-up with this retirement thing?

 Zig Ziglar, God rest his soul, pointed out to me 30 years ago what retirement really means. I only met Zig once and it was enough. We talked and shook hands. In that short meeting I confessed to Zig I was going to cash it in and sit around reading all day. Now Zig is a good guy. He didn’t say nasty things to me, but for the smallest fraction of a second his face had a tell. I knew Zig was going to tell me something profound.