When Can You Really Retire?
I’m not talking about the age you would like to retire at, but rather when do you know that you can retire?
- You don’t feel like working anymore?
- You’ve hit the retirement age set by the government?
- You find yourself suddenly unemployed?
- You’re financially free?
I hope you chose the 4th option…
When you’re financially free.
But how do you tell when are you financially free?
Here’s the formula we use for all our clients and ourselves. Ready?
Income > Standard of Living
That’s all. So simple to understand yet so difficult to achieve.
The problem many people face is that most to all of their income comes from their work income.
When you stop working, your income stops coming in. And as you can see from the formula, the goal of being financially free will be an issue.
And that’s where the true retirement planning comes into the picture.
The critical thing here is to make sure you’re financially stable to continue paying your bills every month.
That’s when you no longer need your job, whether voluntarily or otherwise.
Because here at GEN…
That is when you truly have a healthy retirement plan.