By Michelle Connell, CFA | 2 min read
The coronavirus pandemic has hit workers over age 55 especially hard. Many have lost their jobs due to COVID-19, and of those who managed to retain employment, many are considering early retirement.
According to AARP, the total number of workers ages 55+ in the U.S. economy dropped by 5.1 million from February to May. And the percentage of this age cohort who are working or actively seeking work dropped from 40.8 percent to 38.5 percent, suggesting many older workers have completely dropped out of the labor market.
While retiring early may sound like a dream, is it really the best option? Can your investments support your lifestyle as you move into retirement?
In a Forbes Editor’s Pick article (also published in MarketWatch), Michelle Connell, CFA, weighed in on why you should be cautious before taking early retirement. The article offers some technical points on the viability of early retirement and severance packages. These include:
- The ramifications of taking social security early.
- Medical expenses and associated insurance coverage.
- How to evaluate living expenses and determine if your investments will fall short.
- The reasons why future severance package offers should not be an assumption.
- The benefits of seeking help from an experienced financial advisor who can work you through the pros and cons of early retirement.
The decision to retire early is not one to take lightly, especially if you are married, have minor children or are going through a significant life change, such as divorce.
Click below to read the article for more tips to consider if you’re facing this difficult decision.
- Are you facing early retirement and wondering if it’s the best decision for you?
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About the Author
Michelle Connell, CFA is the President and Owner of Portia Capital Management, LLC and one of the highest-rated finance professors in the United States, currently serving as an adjunct professor at The University of Texas. Ms. Connell works with her students and private clients to understand the value of crafting a portfolio that includes conventional products as well as alternative assets, including private equity, private debt and real estate, and allows investment portfolio creation with greater downside protection and more consistent returns.