Reframing retirement from an all-or-nothing proposition to one where people realize how much control they have lets them begin planning for it more wisely and creatively, writes Christine Fahlund, a senior financial planner and vice president with T. Rowe Price Investment Services.
Fahlund, in a
Fahlund recommends having clients in their ‘60’s ‘practice’ retiring while they’re still gainfully employed and earning a salary. She writes:
That means continuing to work, but beginning the transition by incorporating some of the activities they envision for their retirement - traveling, taking up a hobby, studying a new language or discipline. Clients who are unsure about giving up work can try out a life with a little extra leisure, without committing to it. And those who haven't saved enough can postpone retirement - ideally until 70, when they can collect their maximum Social Security benefit - while letting themselves enjoy life more.
The key, she says, is that clients “don’t tap their next egg.” They should pay for their new lifestyle from earnings.
Read Fahlund’s
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