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In life, we all have three finite resources: time, health, and money. When we’re younger, most of us have plenty of time and health and are often willing to trade them for more money. But as we progress through life, time and health become more scarce—and much more valuable.
Many people think financial advisors are only concerned with telling you to save more or spend less to afford retirement. However, my experience as a financial planner has shown me that this couldn't be further from the truth. In fact, I often help people gain the confidence to spend more of their money or retire earlier than they originally planned.
Here are 5 reasons you should consider retiring as early as possible.
We all know that time is finite, but let’s think about it differently. Imagine your life in terms of seasons. For example, if you’re 60 years old and expect to live to 90, you have about 30 more summers left. That’s 30 more holiday seasons with your family, 30 more annual trips.
It really puts things into perspective, doesn't it? Time is our most valuable resource, and we can’t get it back. Time compounds like interest. The earlier you retire and start creating memories, the more you’ll cherish those memories later in life.
Even if you don’t retire completely, consider scaling back to part-time work. Working 20 hours per week instead of 40 gives you more time for the things you love—whether that’s spending time with family or simply enjoying the little things in life.
For many people approaching retirement, work no longer provides the same sense of purpose it once did. Instead, it might feel like an obligation—something that drains your time and energy without giving you fulfillment.
If your job no longer aligns with your passions or values, or if it’s starting to affect your emotional well-being, this could be a huge red flag that it’s time to retire. I talk to many clients and people online who say they retired years ago and it was the best decision they ever made.
Even if you’re not ready for full retirement, consider transitioning to part-time work or exploring opportunities in less stressful fields or industries.
Many people delay retirement because they’re worried about the next market crash or the state of the economy. While these are valid concerns, it’s important to remember that the market will always fluctuate.
Just look at the S&P 500 chart over a 10-year period—each dot represents a reason to worry, but as of today, the market is at an all-time high. While we can’t predict the future, what matters most is that you have a solid retirement plan in place. This way, if the market drops early in your retirement, you’re still set up for long-term success.
The key takeaway? There’s never going to be a "perfect" time to retire. The market will go up and down as it always has, but with a well-thought-out plan, you can weather those fluctuations.
Many people set arbitrary retirement goals, like retiring at age 60 or when they’ve saved $1 million or $2 million. But these goals often aren’t grounded in a comprehensive retirement plan.
I’ve worked with many individuals who reach these goals only to say, “I’ll work one more year” or “I’ll save another $100,000.” But that one more year can quickly turn into five more years. That’s five years of lost time that could have been spent enjoying retirement.
Rather than setting arbitrary goals, it’s crucial to have a retirement plan based on your unique situation. Don’t sacrifice time with loved ones and life experiences to chase after a goal that may not be necessary.
Mainstream headlines often tell you that you need $1 million, $2 million, or even 25 times your salary saved to retire comfortably. But these numbers don’t consider your unique circumstances.
For example, let’s say you want to retire on $60,000 per year. Traditional rules like the 4% rule suggest you’ll need $1.5 million saved. However, that rule assumes you’ll spend the same amount every year in retirement. This doesn’t align with the retirement spending smile.
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Here’s how the retirement spending smile works:
Additionally, that $1.5 million number doesn’t factor in other income sources like Social Security or rental income. You may need much less saved than you think, which means you could retire sooner than expected.
I hope these five reasons have given you a new perspective on retiring early. You may be in a better position to retire than you think. Don’t let arbitrary goals or market fears keep you from enjoying the best years of your life.
If you’re interested in learning more about how much you can afford to spend in retirement, check out this video where I break down a specific withdrawal strategy. Thanks for reading, and I’ll see you in the next post!
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