Being a financial planner comes with a certain amount of stress.
Most would contribute the schizophrenic stock market as the leading culprit of the high stress levels.
And that is absolutely correct. Dang you market!
Coming in at a very close second is helping a client strategically plan for their early retirement.
What do I define as an early retirement?
Any client that is retiring before they can attain social security (and don’t have a pension). Trying to help ease the income needs for retirement puts added stress to make sure they don’t run out of money in their golden years.
An additional level of stress occurs in making clients stick to the plan.
Too often clients start viewing their retirements accounts as ATM machines, and I have to make sure they don’t get too crazy with their spending habits.
Oh yes, early retirement can be very stressful for all parties involved.
The BIG Mistake
When it comes to making the biggest mistake in retiring early, I’ve seen it done countless times and it can be a very costly one.
So, what’s the big mistake? Let me illustrate by sharing a recent conversation I had with an individual that had recently changed jobs and had to make a decision with his old 401(k).
This individual was 50 years of age and had a decision to make with his 401(k). He had been at his previous job for a number of years and his 401(k) had collected a nice sum of approximately $500,000. He was trying to make the decision whether to roll the 401(k) to his new 401(k) or roll it over to an online brokerage like Scottrade or eTrade. In the conversation, I could tell a lot of his focus was on fees, where to invest the money, access to the money, etc.