Here Are Three Things to Know if You Are Considering Early Retirement This Year, by Todd Carmack

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2020 was devastating, not just for individuals but local businesses and the economy as a whole. As the New Year progresses, personal finance will be a top priority for many Americans who may have to rethink their retirement planning due to the Coronavirus pandemic. Here are three essential things to consider when planning your finances this year.1. Start from the BasicsThe general rule of thumb to attain financial independence is to have an emergency fund with about three to six months’ expenses. If your emergency fund has been depleted due to Coronavirus, your first goal should be to replenish it in the first few months of the year. Instead of crafting a long-term goal, try to build back the fund in the first half of 2021.2. If You Lost Your Job, Re-Evaluate Your Career Prospects in the New YearWhile many industries suffered setbacks due to the pandemic, others like IT, telehealth, e-commerce, delivery services, and others enjoy a massive boost and have been hiring. If you lost your job due to the pandemic, consider the prospects of switching to any of these industries that have experienced a boom these past few months. Even if the job isn’t what you have in mind, give it a go if you are looking for employment.Your goal should be to have a job to provide a steady flow of income to meet you and your family’s needs and provide additional benefits like healthcare, mental health, and subsidized child care services. The most important thing is that you are off the sideline because the more you sit it out, the harder it becomes to get back into the workforce.3. Considering Early Retirement? Here’s what to doAbout 20 million Americans were unemployed during the peak of the coronavirus pandemic in 2020. Many baby boomers and Gen X-ers have been forced into early retirement or are considering retiring in 2021 ahead of their planned retirement date. While the rate of unemployment may seem to have reduced, part of the reason for the reduction is that lots of Americans are retiring and leaving the workforce.If early retirement has crossed your mind, it’s essential to first look at your assets and calculate the income you will have in retirement before deciding. Life expectancy has greatly improved, and people are living longer today than before. This also means the amount of money you need to save for retirement will be higher since you are likely to live longer.So retiring at 55 may not be feasible for everyone to avoid running out of cash in retirement.Ensure to run the numbers and create a feasible retiring strategy, including a withdrawal strategy. The 4% rule is one of the most popular retirement spending rules to ensure your retirement assets last as long as you. If you retire at 55, and there’s the possibility of living up to 90 or 95, you need to plan for 40 years in retirement.It’s essential to make these calculations early to know where you stand before deciding about retiring early because it’s challenging to get back into the workforce when you are 60 or 65. 
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Bio:
I grew up in Dubuque, Iowa, where I learned the concepts of hard work and the value of a dollar. I spent years in Boy Scouts and achieved the honor of Eagle Scout. I graduated from Iowa State University and moved to Chicago and spent a few years managing restaurants. I then started working in financial services and insurance helping families prepare for the high cost of college for their children. After spending years in the insurance industry, I moved to Arizona and started working with Federal Employees offing education and options on their benefits. I became a Financial Advisor / Fiduciary to further help people properly plan for the future. I enjoy cooking and traveling in my free time.

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