MONEY: Careful planning required for early retirement

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Dear Money Lady: I ​​turn 59 in 2022 and sometimes think I’m ready to retire. One day I want to quit and the next I plan to continue working until 65. Any ideas?

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Paul

You’re not alone Paul. Many Canadians want to make changes in 2022 as we ease our way out of COVID. We have had a cultural awakening towards our own mortality, and many in the late 50s have decided that they would like to retire earlier with the idea of ​​working until 65 is now a real problem. But being frugal and living a minimalist lifestyle is just not enough. And without knowing when you will die, which has always been the magic question, the risk of running out of money in retirement is a sobering reality. Retiring early (under 65) is a wonderful thought in theory, but you can definitely not drain your savings just because you want to retire earlier. So what other options are there?

Whether you choose to work on a shortened work schedule with your current employer or decide to start something new, most early retirees often have a part-time job or a bustle to provide the much-needed income to maintain their lifestyle or continue to pay. down. debt. This will allow you to get used to living for less and it can also ensure that all your debts are actually paid in full when you make your hard stop working.

So how do you create a passive income to either switch to half board or provide additional income to get you there faster? Networking has always been the best way to move from one career to another, but this is certainly a contact strategy, one that has been difficult during a lockdown. So instead, ask yourself why do you want to retire now? If you could change careers, what would it be? What would make you really happy? What do you want with the rest of your life?

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Paul, when you started working in your career, you most likely always had to focus on what you obviously did not do well, and ignore all the things that you probably loved to do and were unique to. So now that you’re getting older, I want you to focus on all the things you’re really good at. I know you are good at something, in fact I would bet you are good if not good at many things. Take a moment right now and write down a list of what you do well. Are you good at communicating? Good to sell? Good to be a friend? Good at being a good listener, working on numbers, organizing or even developing new things? Start by creating a “good to-do list” and then write down for each entry how you can use these skills to create a full and profitable retirement. Can you expand your current work situation, or can you create a new opportunity? Here are a few ideas to get you started.

  • Freelance or contract employee – expand what you are currently doing to create a new entrepreneurial business;
  • Teacher – music and education;
  • Photographer for special events;
  • Pet groomer, babysitter, walker or home breeder;
  • Online Store Owner – Etsy, Shopify, Poshmark, eBay, etc .;
  • Organic entrepreneur (garden, soaps, candles, honey);
  • UBER driver, courier driver, home care for the elderly;
  • Life coach, finance coach, diet and wellness coach;
  • Author, public speaker, journalist for a local newspaper;

Remember Paul that change is often scary and deciding to possibly retire this year will definitely be an adjustment. But we all usually have our biggest breakthrough when we push through and make a transformation for the better.

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You should never feel stuck in your life or in your career, regardless of your age. There is a huge value in working in your area with unique abilities. Doing so will make it easier and faster to make a change and create either a passive income stream or perhaps a completely new business opportunity. Challenge yourself to think bigger and seize the moment. You only have one life to do it in – so believe in your ability and refuse to regret later in life.

Good luck and best wishes

Christine Ibbotson

Written by Christine Ibbotson, author of three financial books and the Canadian bestseller, “How to Retire Debt Free & Wealthy”. Go to www.askthemoneylady.ca, or send a question to info@askthemoneylady.ca

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