Want to Retire in 5 Years ? What You MUST KNOW!

In this video, Ryan provides a concise checklist for those who want to retire in 5 years, highlighting the importance of setting a clear retirement date to optimize financial planning and tax management. He advises estimating retirement income and expenses, distinguishing between essential and discretionary spending.

Additionally, he emphasizes planning for long-term care, presenting various options like self-insurance, hybrid insurance, and asset-based long-term care annuities. Ryan, concludes by urging individuals to adjust their investment portfolios cautiously, considering risk and return to secure a stable financial future.

Want to Retire in 5 Years? What You MUST KNOW!

Have you gotten to the point in life where you were thinking about retirement? If so, you might be experiencing a mix of excitement and anxiety about taking the plunge into the next phase of your life. Retirement can be a wonderful time filled with newfound freedom and opportunities, but it also requires careful planning and consideration. In this article, we’ll explore five essential things you must know before you retire to ensure a smooth and fulfilling transition.

1. Set a Clear Retirement Date

The first step in preparing for retirement is to set a clear retirement date. Having a goal in mind will allow you to take advantage of various planning opportunities. Waiting too long to plan can lead to financial inefficiencies and missed opportunities. For example, if your retirement accounts are heavily weighted towards tax-deferred vehicles like a 401(k) and pension, all your withdrawals in retirement will be fully taxable, potentially resulting in higher tax burdens. To avoid this, consider diversifying your retirement savings to include tax-free or tax-advantaged accounts.

2. Estimate Your Retirement Income and Expenses

Before you retire, it’s crucial to have a realistic estimate of your retirement income and expenses. Many people assume they’ll need the same income in retirement as they did during their working years, but this may not be the case. Consider the following:

  • Retirement Income: Factor in your Social Security benefits, pension (if applicable), and any other sources of income.
  • Retirement Expenses: Separate your non-discretionary expenses (essential living expenses like housing, healthcare, utilities) from discretionary expenses (non-essential spending like vacations and hobbies).

Understanding your true income needs will help you plan effectively and optimize your retirement savings.

3. Plan for Long-Term Care

Long-term care is an important consideration in retirement planning. Statistics show that one in two people will need long-term care at some point in their lives. There are various options to cover long-term care expenses, such as self-insuring, long-term care insurance, or hybrid policies that combine life insurance with long-term care benefits.

Early planning is essential to ensure you have access to the best options and can protect yourself from potential financial burdens later in life.

4. Develop a Phased Income Plan

Retirement spending is not always linear; it often follows distinct phases. In the early “Go-Go” years, expenses might be higher as retirees indulge in travel and leisure activities. In the “Slow-Go” years, spending may decrease as people settle into a more relaxed lifestyle. Finally, in the “No-Go” years, expenses could increase again due to potential healthcare costs.

Understanding and planning for these phases can help you allocate your retirement income more efficiently, providing peace of mind and a more enjoyable retirement.

5. Adjust Your Investment Portfolio

Your investment strategy should evolve as you approach retirement. It’s essential to strike a balance between growth and risk management. Reducing the risk in your investment portfolio as you near retirement can help protect your assets from market downturns. On the other hand, maintaining some exposure to growth-oriented assets can help your portfolio outpace inflation and sustain you throughout your retirement years.

A financial advisor can help you tailor your portfolio to align with your retirement goals and risk tolerance.


Retiring is a significant life event that requires careful preparation and planning. By considering these five essential factors—setting a clear retirement date, estimating your income and expenses, planning for long-term care, developing a phased income plan, and adjusting your investment portfolio—you can set yourself up for a successful and enjoyable retirement journey. Remember to engage a trusted financial advisor early in the process to guide you through the complexities of retirement planning and make the most of this exciting chapter in your life. Here’s to a happy and fulfilling retirement ahead!

Also read: How To Save $1000’S On Taxes During Retirement


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Topics we will be covering are Retirement and Financial Planning, Investment Selection, Retirement Income Planning, Taxes and Taxation during Retirement, Healthcare, Long Term Care, Legacy and Estate Planning, in addition to important Market and Economic changes impacting Retirement.

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