Early retirement and COVID-19 might seem unrelated but the pandemic is affecting industries from airlines to schools, and forcing some to make difficult choices.
- Early retirement can be a blessing
- Savings options abound
- Retirement can be about you living your best life
Retirement and Savings
Of course, it is a huge decision to retire early, and it makes an even bigger difference if you’re given a choice or not. If your savings are not equal to what you will need, you may want to pass on the offer so you can continue working and saving. If you cannot make the decision yourself, and your company makes it for you, you may still be able to make the best of it.
If you’ve been told that you are eligible for early retirement, you can try and negotiate the best deal you can. You may be able to bargain for continued insurance coverage, extra payouts for unused vacation, and that sort of thing.
Industries all over the world are feeling the pinch due to COVID-19. Airlines and hotels have been rocked by the lack of vacationing and traveling in general. Commuter bus companies are closing their doors while they ride out the wave of the virus. Zoos, amusement parks, libraries: any place, really, where people can congregate, has seen evaporated profits and closures due to coronavirus.
As these industries adjust to the latest updates, many are offering early retirement in droves. Reducing head count may mean they can lease smaller physical footprints, either presently or when the virus dies down or a widely-accepted vaccine is available.
Retiring for Good
While it can be a painful blow to the pride to be forced into early retirement or otherwise downsized, in some cases it may prove to be the beginning of a new part of life. If financial stability is realized, because of making fully funding retirement a priority, or have sufficient years behind that comfort will be assured, if not even fabulous wealth, this can be a door to a new life.
Maybe a passion project has always called, and this will offer a chance to pursue it. Maybe working nine-to-five for a corporation has lost it’s appeal, and this can be a chance to start something new.
Rolling over an existing retirement account to a Self-Directed IRA could help fund dreams and ensure financial stability.
Retirement and COVID-19
If choosing early retirement from COVID-19 is an option, and a passion project or new business venture calls, consider a Self-Directed IRA, to best have control over the future. When considering retirement, it’s important to ensure the best value for rolling over existing funds. With a Solo 401(k), if you are self-employed, or Self-Directed IRA, investors can be in charge of their traditional and alternative assets themselves with checkbook control.
Of course, early retirement may not be an option, especially as a result of the virus. If that’s the case, you should still save as much as possible for retirement. If retiring early is a goal, stick to the plan, even if that means forgoing things you don’t need. Working from home? Maybe you can ditch the car for awhile. Avoiding ordering out too often. And maybe it’s a good idea to stay off Amazon for awhile!
Lastly, it’s important to work with a financial planner or advisor. It’s especially true during these uncertain times. Together, you can formulate a plan to get through the current crisis and be ready to retire when you want!