Mark Hauser Early Retirement Strategy

Mark Hauser is a co-managing partner at Hauser Private Equity. Needless to say, when he recommends working with a financial advisor, it’s advice worth heeding. A financial advisor analyzes a person’s life, finances, and income, handles unplanned events, and creates a plan based on their findings.

Two Retirement Stages

Early retirement is retiring before age 65, the standard retirement age. This expedited retirement timeframe is based on the FIRE investing approach. FIRE is financially sound, and financial independence is the guiding principle. A well-rounded strategy allows those who retire early to select when they want to work.

Separating a retirement plan into two phases is helpful in this scenario. A detailed strategy for each phase can help ensure that each retirement component is covered.

Pre-retirement

Each person should build a vision for early retirement before starting. After defining their vision, they may evaluate the financial resources needed to realize it.

Profitability

Early retirees pursue part-time or gig economy labor to fund their new lives. By earning money while working, people don’t need to save as much. Some (or all) of their job-related income should go into a retirement fund. Some part-time occupations provide health insurance.

Many part-time occupations don’t offer to schedule flexibility for early retirees. Employers may not approve of employees taking time off to vacation, socialize, or do personal business.

Passive income

Early retirees might have greater lifestyle flexibility by creating passive income. Mark Hauser says real estate investments like house rentals give a regular income. Unused vehicle and equipment rentals might earn money.

Savings boost

Many early retirees save while still working. Automating savings is the best approach to boost a retirement fund. HR or payroll can manage savings plan enrollment.

Paying off auto payments and credit card debt is common in early retirement planning. After paying each expense in full, the individual should immediately save for retirement. Tax refunds should be put in retirement accounts.

Social Security planning

When to receive Social Security is part of early retirement planning. Many retirees start collecting as soon as they can. They will receive up to 30% less than if they had waited.

The Social Security website has tools to assist retirees to determine when to start collecting. Mark Hauser suggests a Social Security-savvy financial advisor. This expert can help defer payments till the best withdrawal date.

Housing Management

Consistent income should cover major housing expenditures. An early mortgage payment is recommended.

Downsizing has advantages like reduced mortgage payments, lower taxes, and home maintenance expenditures. Downsizing can enhance early retirees’ retirement funds.

Before early retirement, homeowners may make major modifications and repairs. Financial gurus warn early retirees against major home upgrades. Rising expenditures might impact long-term homeowner finances.

Insurance coverage

Early retirement health insurance is a challenge. When people retire, they lose employer-provided health insurance. They must discover a way to connect these two landmarks.

COBRA

Mark Hauser says many workers know about COBRA health insurance continuance. Thousands of U.S. workers have used this scheme for decades. COBRA allows eligible employees (and their families) to maintain their prior employer’s health coverage for 18 to 36 months.

Budgeting

Early retirees should know how much money they’ll need to live on. Many individuals may stick to basic household budgets while splurging on unforgettable events.

Younger retirees may spend more since they’re more active and want to indulge themselves. New retirees spend more on lifestyle modifications, regardless of age. Renovations, moving, and travel are just a few examples.

Cost-Cutting Strategies

FIRE activists minimize their expenditures. Even ‘good’ debt like a mortgage is a priority. These cost-cutters also save on housing, utilities, groceries, and transportation.

Changing ROI expectations

Some retirees expect a large investment return. Many financial experts and private equity principal Mark Hauser disagree.

The S&P 500 averaged 9.8% during the previous 90 years. Individual investors won’t get that return. Advisors think a 5% or 6% return is more likely. Long-term, regular income may matter more.

Early retirement success

Early retirees are well-prepared. They made money and handled financial and logistical problems. They planned early retirement together.

Early retirees were often frugal. Mark Hauser urges early retirees to prepare a spending plan. This template aids retirement savings.

Contact Information:
Email: [email protected]
Phone: 8139269909

Bio:
For over 30-years Joe Carreno of The Retirement Advantage has been a Federal Employee Retirement System specialist (FERS) as well as a Florida Retirement System specialist (FRS) independent advocate. An affiliate of PSRE (Public Sector Retirement Educators), a Federal Contractor & Registered Vendor to the Federal Government, also an affiliate of TSP Withdrawal Consultants. We will help you understand your FERS & FRS Benefits, TSP & Florida D.R.O.P. withdrawal options in detail while recognizing & maximizing all concurrent alternatives available.Our primary goal is to guide you into retirement with no regrets; safe, predictable, stable, for life. We look forward to visiting with you.

Disclosure:
Not affiliated with the U.S. Federal Government, the State of Florida, or any government agency. The firm is not engaged in the practice of law or accounting. Always consult an attorney or tax professional regarding your specific legal or tax situation. Although we make great efforts to ensure the accuracy of the information contained herein we cannot guarantee all information is correct. Any comments regarding guarantees, safe and secure investments & guaranteed income streams or similar refer only to fixed insurance and annuity products. Fixed insurance and annuity product guarantees are subject to the claimsâ€paying ability of the issuing company. Annuities are long-term products of the insurance industry designed for retirement income. They contain some limitations, including possible withdrawal charges and a market value adjustment that could affect contract values. Annuities are not FDIC insured.