The Fourth & Final Step to Retirement

Hi folks

So, the fourth and final step to retiring is to actually retire (who knew?!)

Take care and stay nice 

Mr HM (Phil)

...... oh wait, you probably want some more info? (chuckle) OK then.

First up, let's be quite clear about retirement - there is a zillion different ways to retire. Importantly, it has to be a retirement that is authentically you and be meaningful.

We can retire fat or thin, we can retire totally from work or semi retire, we can retire early or late, abroad or at home. We can down-size, up-size, tree-change, sea-change or just stay put. We can travel till our wings fall off or take cruises till our floaties pop or we can kick back and spend the next million years mastering water colour painting. Maybe you just want to continue to be you but with no need to have to go out to work - that's completely valid too.

Hearkening back to the previous three posts in this series, we know we are able to retire when one of the following things occur:

  1. Our income from investments is equal to our retirement budgetary needs AKA our dividends meet our expenses and future plans.
  2. Our income semi-covers our expenses and future plans and we can earn the shortfall by some part-time employment or business activity.

  3. We reach the stipulated age that we can legally access our retirement funds and they cover either points 1 or 2 above.

Do your own research, but I think there is great retirement advice 'out there' that does not cost an arm or a leg and is genuinely independent. However using a logical approach, we need to be secure in the knowledge that we are across where our income (passive and/or active) is sustainably coming from far into the future.

Also, retirement is not just for the aged.  More and more folk are saving and investing wisely and are financially independent (point 1 above) well before normal retirement age. That is the ideal scenario and a thoroughly worthy endeavour.

Moreover, retirement is not just for retiring. It could be to reinvent ourselves entirely or to dedicate our life to a worthy cause.  Having the income stream sorted to do either of these makes it all possible.

Finally - focus on growing the stable income stream from our investments as this is the real tangible factor in being able to retire confidently and meaningfully.

Take care folks and stay nice (for real this time)

Mr HM (Phil)