Q&A: The Unintended Consequences of Early Retirement

Afford Anything | Make Smart Money Choices

Paula Pant | Cumulus Podcast Network

Entrepreneurship, Investing, Business

4.7 • 3.6K Ratings

🗓️ 6 August 2024

⏱️ 77 minutes

🔗️ Recording | iTunes | RSS

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Summary

#529: Anonymous, 60, recently lost her job and is worried about retirement. She owns a paid-off triplex, living in one unit and renting the others for $30,000 a year. She used her 401(k) funds to buy the triplex and now has $50,000 in retirement savings and $150,000 in cash. She expects only $2,400 a month from Social Security at age 67. After losing her son two years ago, she's seeking advice on managing her underfunded retirement. Noelle, 40, and her husband, 49, want to cancel his whole life insurance policy. They are debt-free, own their home, and plan to retire soon, relying on Noelle's $80,000 income. They have $504,000 in retirement savings. Should Noelle keep her $100,000 term life policy until she retires? Sleepless in San Antonio, age 35, plans to retire at 45 but is concerned about how this will affect Social Security benefits, which is calculated based on the top 35 earning years. Should they work longer in order to boost their Social Security benefits? Former financial planner Joe Saul-Sehy and I tackle these three questions in today’s episode. Enjoy! P.S. Got a question? Leave it at https://affordanything.com/voicemail For more information, visit the show notes at https://affordanything.com/episode529 Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcript

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0:00.0	Joe when you were a financial advisor did you ever have to talk to people about the
0:04.3	unintended consequences of early retirement one of my favorite books as you know
0:09.4	Paula is Stephen Covey's seven habits of highly successful people.
0:14.0	Highly effective and successful.
0:17.0	I'm going to rename that book to be whatever I want it to be, Paula.
0:21.0	That's the very effective thing to do.
0:22.0	When you pick up one end of the stick right you
0:24.5	there's an unintended end and so to figure out all the other consequences when you're
0:29.5	building is an important part of the plan. Absolutely and we're going to talk about that today.
0:33.9	We're also going to talk to a woman who was unfortunately laid off
0:39.0	at the age of 60 and is trying to decipher what retirement is going to look like with that set of
0:45.8	circumstances and we're going to talk to a couple that thinks that they can
0:50.8	shave six hundred dollars a year off of their budget because they're paying for a benefit that they may not need.
0:57.6	Welcome to the Afford Anything Podcast, the show that understands you can afford anything but not everything every choice
1:04.0	carries a trade-off and that applies not just to your money but to your time your
1:08.4	focus your energy your attention to any limited resource you need to manage So what matters most and how do you make choices accordingly?
1:16.5	Those are the two questions this podcast is here to answer. My name is Paula Panth.
1:21.1	I trained in economic reporting at Columbia, and I help you do what matters most.
1:27.6	Every other episode I answer questions that come from you alongside my buddy, the former
1:31.9	financial advisor. Jos. Hi what's up Joe what's happening
1:36.4	Paula I am having a great time how about you? People don't know that we were gonna
1:42.4	start recording about 45 minutes ago, but we were too busy laughing.
	...

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