Some Americans may have been planning to retire in 2020 — but they might be uncertain about those plans now due to the Coronavirus pandemic. The nearly 11-year bull market ended in March 2020, and companies are shutting down throughout the world. We are all living through unprecedented times, and many investors haven’t experienced market situations like the COVID-19 economic and global public health crisis.
Michael Hennessy, founder and CEO of financial advisory firm Harbor Crest Wealth Advisors in Fort Lauderdale, Florida, spoke with MarketWatch for this March 2020 article, “Can I still afford to retire? The coronavirus has upended jobs, spurred a market downturn — what now?”
Hennessy said there are a few questions near-retirees should ask themselves before they leave the workforce. These include the following:
- How will you support your living expenses?
- What will you do about health care, and are you eligible for Medicare or factored in out-of-pocket health expenses until you can enroll in Medicare?
- Will you need to start drawing down your investment portfolios to make up your retirement income?
- Do you need to claim Social Security benefits early, which can limit how much you receive in benefits overall? And what will you do in retirement if you chose to exit from the workforce now?
- Why do you want to retire now — is it just because of market volatility?
“There’s typically only one shot to retire correctly,” said Mike Hennessy, CFA, CFP®. “Don’t jump into the decision rashly.”
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