How to Achieve Your Goal of Retiring at Age 70, Ep #95

What can you do to help you achieve your goal of retiring at age 70? When you write goals down, you increase your odds of completing them by 10x. So the first thing you can do to increase your odds of retiring at 70 is to write down: “My goal is to retire at age 70.” Now, you need to write down other things you can do to maximize your chances of reaching your goal.

You might write down, “I will delay my social security benefit until age 70.” That would maximize your social security. However, I’ve run retirement plans where it makes the most sense to collect social security at full retirement age instead. Then you can invest those dollars in things like growth mutual funds.

What other things can you add to your lease to achieve your goal of retiring at 70? Listen to this episode of The Retirement Made Easy podcast to learn more!

You will want to hear this episode if you are interested in…

• [0:22] A BIG thank you to my listeners
• [5:56] The importance of writing down your goals
• [8:40] Claim social security at age 70
• [10:02] #1: Pay off your house or downsize
• [10:53] #2: Consider taking on a part-time job
• [13:58] #3: Find ways to save more for retirement
• [16:08] #4: Review how your retirement accounts are invested
• [18:44] #5: Sit down with a retirement planner

#1: Pay off your house or downsize

You might want to pay off your mortgage before you retire. Or, you can downsize into a smaller home prior to retirement to save more money leading to retirement. I had one client who still lived in a 4,000-square-foot house after his kids grew up and moved out. He never used the second level or the basement. But he had a hard time selling it because it was where he raised his kids. But the best strategy for him was to downsize.

#2: Consider taking on a part-time job

Retirement doesn’t have to be all or nothing. I know multiple clients who work part-time in retirement because it keeps them busy. Secondly, it brings in extra income, which means you don’t have to tap into your retirement accounts as much. Ask your boss if you can still work 15–20 hours a week. Many pre-retirees are surprised to find that their boss is completely on board with keeping them on part-time. I don’t know what you’re good at or what you’re passionate about but there will be a part-time venture out there for you.

#3: Find ways to save more for retirement

You can save more money for retirement by cutting your expenses. I always recommend setting a budget. You can use resources like EveryDollar, Mint.com, or even my free budgeting tool. One area where many people should consider trimming their budget is life insurance. I’m not saying to go out and cancel your plan. However, it’s probably a good time to review it. If you’re in your 60s, your kids are raised, and your home is paid off—do you really need life insurance? Don’t throw your money away on life insurance premiums for coverage you don’t need. Take that money and invest it for your future. I’m certain if you look at your budget you’ll find something you can trim to save more money.

#4: Review how your retirement accounts are invested

You need to review your retirement accounts and make sure that they are working for you. Are they helping you get closer to your goal of retiring at 70? I spoke with someone who decided to take an IRA and purchase a CD. The CD paid an interest rate that was less than 1%. If you’re already behind funding your retirement accounts, a 1% return per year isn’t going to cut it. Inflation is north of 8% (averaging 3% per year). If your retirement is chugging along by 3.75%, you’re falling behind. You have to pick up the pace. You can’t drive in the slow lane and expect 1% to get you to where you need to be.

#5: Sit down with a retirement planner

A retirement planner can help you determine how realistic your plan is. They can also help you:

• Determine how much money you need to save
• Calculate the rate of return you need on your investments
• Choose the debt to pay off between now and 70
• What holes do they see in your retirement plan?
• How much part-time income do you need to supplement social security, pensions, and your retirement nest egg?

A retirement planner can help you make your checklist as realistic as possible and bring you ever closer to your goal of retiring at age 70. Whatever you do—write down your goals.

Resources & People Mentioned

• My FREE budgeting tool
• Mint
• EveryDollar