By Mike Collopy, CFP®, CIMA®
Choosing to retire early requires more planning than just replacing your income. Corporate executives who are retiring “young” face a special set of challenges and advantages compared to typical retirees. At Veracity Capital, we’re experienced in developing strategies that help corporate executives prepare for retirement on their terms.
1. What Is Retirement in Today’s World?
Retiring from corporate America in today’s world means something much different than it did 40 years ago. Many of our clients are looking for financial independence in their 50s when they can truly retire. More commonly, they want to shift their career to a better work-life balance (more flexible schedule, consulting, starting a business related to a passion of theirs, etc.). We help clients gain the freedom to shift from their corporate gigs into a better quality of life situation.
2. Income Planning
When retiring in your 50s (or any time for that matter!), the focus is on income. How will you replace your paycheck, and how do you avoid the risk of running out of money? We first help analyze a client’s resources from savings, investment and retirement accounts, Social Security, and other income resources, to establish a comfortable income stream.
Usually, we prefer to start this planning process several years before retirement, but ultimately you absolutely should know that number before retiring. From there, we develop a plan to fund the income stream in a predictable and tax-efficient manner.
3. Tax Opportunities
When you retire “young” in your 50s, you may find yourself in a lower tax bracket for several years. This opens the door for strategies like Roth conversions, where you can shift money from a pre-tax to a post-tax retirement account while you are in a lower tax bracket.
This can lead to incredible tax savings for folks that retire young but have large tax-deferred accounts. Understanding where and when to draw income from a tax standpoint is crucial for optimizing a retirement plan.
4. When Plans Change
Plans don’t always play out exactly as they were originally designed—hence why financial planning involves an ongoing engagement with one’s personal finances. We build a baseline plan for a client’s ideal scenario but also look at the “what-ifs” related to health, above- or below-average returns, changes in personal goals, and more.
Shifting from corporate America into retirement is a stark difference, so it’s common that lifestyle goals and plans may change after entering retirement (change in hobbies, travel appetite, relocating, etc.). Regularly reviewing plans is important to confirm you’re on track, and accounting for those potential lifestyle changes is equally important.
Start Planning for Your Retirement
At Veracity Capital, we have the tools and experience to help you create a smooth shift from the corporate world to a more balanced quality of life. We help you pursue this through income planning, exploring tax opportunities, and planning for the “what-ifs.”
If you’re ready to see how our team can help you plan for retirement in your 50s, call us at (844) 508-7884 or email us at email@example.com. You can also schedule a complimentary introductory call by reaching out to me at 678.685.3265 or firstname.lastname@example.org. We look forward to hearing from you soon!
Mike Collopy is wealth advisor and partner at Veracity Capital. As a fiduciary who puts his clients’ interests first, always, Mike is known for providing a holistic perspective on his clients’ finances. His comprehensive process first looks at the big picture of each client’s family, health, and wealth, then drills down to provide solutions for their financial needs, concerns, and goals. He’s passionate about the science of financial planning and investing and uses that to help his clients build a strong foundation for their financial life. Mike serves career-driven individuals who need professional advice to manage their wealth and maximize their opportunities, such as corporate benefits and complicated compensation packages. He considers his clients to be like family, and strives to support them and their families as they work hard for their financial future.
Mike has a bachelor’s degree in finance from Coastal Carolina University and an MBA from The College of Saint Rose. He is also a CERTIFIED FINANCIAL PLANNER™ practitioner and a Certified Investment Management Analyst®. When he’s not working, you can find Mike spending time with his wife and young son, often exploring the great outdoors by hiking or enjoying the beach. He likes to stay active, playing basketball and training for half marathons. Mike gives back to the community by supporting organizations dedicated to finding treatments for cystic fibrosis. To learn more about Mike, connect with him on LinkedIn.
Advisory services offered through Veracity Capital, LLC, a registered investment advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.