>> tom: welcome back.
Bruce porter joins us now for this week's "speaking legal" segment.
Always good to see you.
Thanks for coming back.
>> guest: good to be here.
>> tom: we have to finish.
We're going to do the question again.
Here it is: i want to retire early.
Not sure if i k what should i be thinking about?
And how can i determine if i can?
We started on this last week, we're going to kind of continue.
>> guest: that's right.
There's six signs that we've identified as signs that you can retire early.
So we talked about last week the emotional stress, the emotional thought you've got to have to make that decision to voluntarily be unemployed.
>> tom: you have to be ready for it.
>> there's a lot that goes into that.
So you need to have a plan.
That's what we established.
Then, we talked about ask you live on your retirement budget?
So establish what your budget is, and try to live on that for a few months.
And see if you are able to.
>> tom: like a practice run, right.
>> guest: that's exactly right.
If you dip into your savings or credit cards, you're not quite ready.
And then, we talked about healthcare.
Having affordable healthcare coverage that can carry all the way until you're eligible for medicare.
>> tom: that's age 65.
>> guest: age 65.
So you've got to budget that, because that's a huge expense.
Now, this week, we're going to talk about a common roadblock to retirement, is family or children.
So let's say you want to retire early, but your kids are either just finishing up or maybe going for a master's degree and they're still not independent.
Maybe they're still living at home.
Maybe they're still a dependent of yours.
You're having to feed them money to keep them going.
Maybe they don't have that well established career.
They're still doing part-time or temporary employment.
So you really got to think through that.
Because if you have to help that family member, that's going to be a roadblock to your fun retirement, fishing, golfing, traveling, >> jeremy: it's an extra expense.
>> guest: absolutely.
Because we're on a fixed income.
When we take that away from our play money, that's going to be a big problem.
>> tom: there's no putting in a few more hours of overtime to get a couple of extra bucks.
>> guest: no, there's not.
The next one, number five, is debt.
If you still have debt, and you want to retire early, i can tell you up front, that's not a good idea.
Debt is nothing you want to carry into retirement.
If you don't have your debt paid off or have a very hard plan on exactly when you're going to be out of that sooner than later, you're probably not ready to retire.
>> jeremy: do most people retire debt-free?
>> guest: that's what everybody would like to do.
Do people retire with debt, absolutely.
>> jeremy: okay.
>> guest: because, you know, everybody's situation is different.
Some people have their home paid for.
Some people have all of their expenses, and now they can retire with full income, and no interest expense.
But that doesn't always happen.
>> tom: yeah.
And you also always have an x factor in there somewhere >> guest: absolutely.
Something is going to pop up.
Car breaks down, so you got to trade cars.
So you spend more money than you thought.
Life continues into retirement.
>> jeremy: absolutely.
>> guest: then, last, the main thing about retirement is having sustainable income that you cannot outlive.
It's the supplemental monthly income that goes right into your checking account, just like a paycheck.
Just like your social security.
And you don't have to worry about the ups and downs in the market.
You don't have to worry about interest rates.
Because you've established a plan that generates this income, and you don't have to worry about it.
If you retire and you got a substantial amount or a large portion, let's say monday you're not willing to lose, all right.
If you've got that invested in a variable environment, you have to understand that you've got to stomach those ups and downs.
And if you take a downturn, like '07, '08, '09, it could be ten years later and you're recuperating from the downturn.
Meanwhile, your account is less, because you've been drawing income every year you've been recovering.
So it's a major, major problem.
>> tom: retiring is a full-time job, is what it sounds like.
[laughter] at least getting there >> guest: you heard getting old is not for sissies, neither is retirement.
>> jeremy: that's awesome, bruce!
>> guest: absolutely.
>> tom: if you have a financial question for bruce, you can e-mail him at [email protected]
And of course, he will answer your question