In their late 50s, Tony and Jennifer are new empty nesters. They finally have the house to themselves, and are now able to focus on their own financial matters. The Armstrong’s have set their sights for “financial independence” by age 62. Like many pre-retirees today, the word “retirement” doesn’t fit their definition of how they expect to live the remainder of their lives. They perceive retirement as an act of sitting on the couch, remote in hand, watching The People’s Court.
For many of today’s pre-retirees, the term “financial independence” suits them better. It signifies a shift from having to work to make ends meet, to having enough money to fund a lifestyle of choice, even if it means working by choice rather than obligation. It was the right time for Tony and Jennifer to get details on how this all works. A current Cornerstone client who was in a similar phase in her life suggested that Jennifer contact us.
Winding down a life of work and understanding how it all works can be overwhelming. Schools and employers don’t teach financial independence. For Tony and Jennifer, their questions included:
- Will we run out of money? If so, how can we make it work?
- Which accounts do we take money from first?
- When should we claim Social Security benefits?
- What should we do about life insurance?
- What are we missing?
Those were some of their initial questions. During Cornerstone 360, other questions came up, and were added to the process.