The Rachel Cruze Show - 6 Questions That Reveal If You Can Retire Early

Starting point is 00:00:05 In the financial world, there's always buzz around retiring early and kind of hacking the system when it comes to investing for the future. So if you're someone who's eager to retire early, here are six questions you need to ask yourself. And be sure to like, subscribe, and share this episode with a friend. All right, the first question to ask yourself is why? Why do you want to retire early? So if you've ever thought about it, it's kind of like, once I retire, everything is just going to be easier and perfect and great. If that's your expectation, Let's re-examine that because to have a quality life, you really do have to have a purpose. Like, this idea of just living in the abyss never really helps.

Starting point is 00:00:46 And it actually studies show that your decline physically and mentally can happen so quickly in retirement if you do not have something else you're doing. And then also loneliness can really happen as well. So here's the thing. People like see work as such a negative thing in this. kind of connotation. But the truth is, if you find the work that you love and that's what you do and that's how you earn a living, then that is really the goal. That's one of the goals in life, right? We spend so many hours of our lives working. And if the only thing you're doing is to run away

Starting point is 00:01:21 from that, I think that there can be a huge letdown. Now, yes, is there flexibility? And maybe you can do something different that you've always wanted to do. That doesn't pay as much as well, your normal job now, like all of that, absolutely. And I'm not saying you have to work into retirement. but this idea of kind of running away from retirement because you don't want to work may not be the best motivation. Just throwing that out there. All right, number two, do you have a great financial advisor in your corner? Because beyond investing, there are other things that you want in place. From estate plans, insurances, taxes, your will, like all of that, you want to make sure you have really shored up because in order to retire early, you're obviously going to have to have the funds to do that.

Starting point is 00:02:03 but you also want to look at your whole financial picture. And so I always recommend working with a SmartVestor Pro. I'll put a link down below so you can connect with one in your area. But having someone in your corner, you guys, regardless of if you want to retire early or not, is so, so wise. Because when they can look at your entire financial picture, you're able to plan really well

Starting point is 00:02:21 and plan based on facts, not emotion, or what's happening in that moment in the market. You can look at your overall financial picture, which is wonderful. Number three, ask yourself, do I have enough money to cover my monthly expenses? So yes, you want to look at the interests that your investments are earning, the principle of that interest and all of it. I want to make sure that you can realistically live off of this for a long period of time because some people, you know,

Starting point is 00:02:48 they rush so quickly into retirement and I'm like, well, I'm not going to have, you know, a lot of bills. I'm going to live really below my means and not live this extravagant life so that I can retire early. And then as you go on in your life, let's say you're crazy and you retire like 45. 65-year-old you may want like a boogey your life, right? And then you're like stuck because you're like, well, I thought I was going to live at this level, but I kind of want to do more and live better, right? So you have to be thinking long term, not just short term. Now to check your progress when it comes to your investments to make sure you have enough, you can check out the Ramsey investment calculator. I love this calculator because you just plug your numbers in, see what everything

Starting point is 00:03:24 is doing, change some numbers, just kind of play along with it because it is really fun to be able to see and change things so you can know what kind of progress you need to make over the long term. And speaking of amazing online resources, I have to tell you about one of our sponsors, delete me. So if you don't remove your personal data from the internet, it's basically like a billboard for everyone to see. And that's your kids' names, your address, your email, everything is out there on sketchy data broker websites. And those data brokers sell your data, and that puts you at risk for scams and fraud. But the good news is, delete me removes your data. helps protect you from fishing, harassment, and other online threats.

Starting point is 00:04:02 So your family safety and financial security are way too important to leave exposed. So go to join toleetMe.com slash Rachel for 20% off their annual plans, bring your monthly cost to under $9 a month, or click the link in the description. I also want to tell you about a sponsor that offers incredible support as you work the Ramsey plan, Fair wins. So if you're working the baby steps, your bank should not be working against you. That is why I love Fairwin's credit union. They share Ramsey values like getting out of debt, saving for the future, and putting people first.

Starting point is 00:04:35 Their smart checking and savings bundle were designed to line up with the baby steps, and their customer service is top tier, you guys. They are amazing. So if you're ready to move your money somewhere that supports your financial goals, head to Fairwins.org slash Ramsey to open up your smart checking and savings bundle today. All right, back to the list. Number four, do you have enough money to do the things you want to do? So yes, you have to pay your utility bill and maybe some medical bills. And there are going to be things that come up, Christmas and birthdays and groceries, right? Like there are things that you're going to have to do to have a classic standard of living even into retirement. But then also, as we were saying that your 65-year-old self might be a little bougier than your 45-old self, think about like, do you have dreams to travel? Do you have dreams to do things in retirement that you're not doing now? So you want to make make sure you're counting all of that as well, not just your regular expenses. Because again,

Starting point is 00:05:32 some people go in and they kind of get the bare bones to try to retire early. And what happens is the retirement life does not look like the life that they dreamed. So obviously, retirement does not mean like, you hit the lottery. But it does mean that you finally get to use those investments that you were investing decades before this point of retirement, which is amazing. Like, right, you have a you have a whole nest egg there waiting for you to do things that you want to do. So making sure that you have enough money in there for it to not only pay for your standard of living that you want to be at, but also to be able to do some fun things as well. Number five, ask yourself if your house is paid off. So paying a mortgage during retirement

Starting point is 00:06:12 totally can be done for sure. But it is so much easier when your house is already paid for because usually the biggest expense that comes in a monthly budget is housing for a rent or a mortgage. And if you don't have a giant house payment, your retirement money is going to go further. So paying off your house before retirement, maybe make that a goal. All right. Next, number six, what do you want your financial legacy to be? So ask yourself this, because if you're heading into retirement, again, maybe at a younger age, but be thinking about the long term and not just you, but everyone else that follows you, right? Whether it's friends or family, like, what do you want to do with it?

Starting point is 00:06:53 I read this book called Die with Zero. I've mentioned it a couple of times on here, but he talks about using all of your money while you're alive, whether it's giving or helping your kids or using it to travel or to treat friends to stuff, like whatever it looks like. Like, is that what you want to do? Or do you want to leave a giant nest egg to your kids

Starting point is 00:07:10 and then maybe some to your grandkids and keep it going? Do you want to leave a large donation to something that you care about and be really generous with that money? Like, whatever it is, I want you to be intentional, though, about your generational financial legacy.

Starting point is 00:07:23 because building wealth, it shouldn't just be so inward focus where it's all about us. It is about other people. It is about changing your family tree and being extremely generous. So don't forget that part. Well, now, there are a few more questions that you may want to ask yourself as well. So make sure to check out the episode, nine questions to help you choose the right financial advisor. That one's coming up next. Or if you're listening on a podcast, I will leave a link below.

Starting point is 00:07:48 All right, you guys, remember to take control of your money and create a life you love. Thank you.

The Rachel Cruze Show - 6 Questions That Reveal If You Can Retire Early

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