7 Questions from Pre-Retirees
Created: July 31, 2020
Modified: September 14, 2022

7 Questions from Pre-Retirees

What You’ll Learn:
We’re going back to the mailbag and taking questions that specifically deal with concerns from pre-retirees. Let’s look at strategies for building your 401k, how much you might need for retirement, and preparations to make as you approach your retirement date.

We love using the podcast as a platform for answering questions that people might not want to bring directly to us just yet. Listeners from across Connecticut and the northeast come to us with a variety of financial planning topics, and most of them ask about things relating to that stage right before retirement.

On this episode of the Money Wisdom podcast, we take seven different questions from pre-retirees and try to provide as much guidance as possible based on the information provided.

A handful of the questions today ask about 401k accounts. This retirement account is one of the most popular savings tools for investors and it can be a powerful tool if used effectively. We’ll talk about why it’s not a good idea to pull money out of a 401k to pay off debt, why consistent contributions are critical for long-term success, and whether a company stock match is worth maxing out.

As you build that 401k account along with other savings, how much are you going to need for retirement? This is one of the top questions for planning and a general guideline says 15-20 times your annual salary will be enough to cover you. Is that correct? Joel will explain both sides during the show.

We also got two questions from people that are within months of retirement. First off, congratulations! Now, let’s talk about two financial items you might need to work out before that big day. If you have built up paid time off, it might not be the best idea to take it all in one paycheck, which we’ll explain. Then we’ll discuss healthcare. Are you going to be covered by Medicare and what if you’re not? How can you bridge the gap until you’ve qualified for coverage?

Joel Johnson and his team of advisors work with clients on these same types of issues and decisions all the time and can help you as well if there are financial planning needs in your family. Contact us and find out how our Money Map can help get you on the path to retirement.

0:23 – Mailbag Question #1: I’m retiring in three years and I have almost a million in my 401k but I also have about $60K in consumer debt. Is it worth it to take money out of the 401k to pay it off now while I’m working?

2:09 – Mailbag Question #2: I’m retiring later this year and I’ll have about 16 weeks of unused vacation and sick leave that they’ll have to pay me. I’m told I can take this all in my final paycheck or continue being paid on my normal schedule every two weeks after I retire. Does it matter which way I do it?

4:02 – Mailbag Question #3: I’m ready to retire but I won’t be old enough for Medicare for another six months. Should I just stick it out until then?

4:50 – Mailbag Question #4: I’m starting a new job with a lower base side but higher commissions. My base salary is too low to contribute to my 401k and pay my bills. Is it ok to just use my commissions for retirement savings?

6:15 – Mailbag Question #5: My company matches my 401k savings but they do it in company stock. I’m not excited about owning a lot of company stock but don’t want to miss out on the match. Should I still try to put in as much as I can?

8:25 – Mailbag Question #6: I’ve heard that you need between 15-20x your annual salary in savings to be able to retire comfortably. Is that accurate?

9:59 – Mailbag Question #7: My husband and I argue every day about money because we haven’t done a great job saving for retirement and it’s stressing us out. Is this normal?

12:15 – How we can help with all of these things?

Schedule Free 15-Minute Call
We want you to have the opportunity to have any questions about money answered with no obligation.
  • Sandy and Thomas C.
    Sandy & Thomas C. are clients of Johnson Brunetti and received no compensation for their statement.

    “We always felt our financial needs were in very capable hands. Alex Angst is great to work with. Our advisor always made us feel he had our best interests at heart and explained things so we could understand them.”

  • Robert G.
    Robert G. is a client of Johnson Brunetti and received no compensation for his statement.

    “We’ve been clients of Johnson-Brunetti for > 10 years. We’re enjoying a comfortable retirement as a result. Many thanks to Joel and our CFP, Eric Hogarth. I wish we had plugged into this decade approach back when we were in our 30s.”

  • Lisa D.
    Lisa D. is a client of Johnson Brunetti and received no compensation for her statement.

    “Working with Johnson Brunetti has had a positive impact on my life by providing me with the knowledge, confidence, and peace of mind to move forward with my retirement plans. The process of getting to this point, through their guidance, has been informative and pleasurable.”

  • Ken D.
    Ken D. is a client of Johnson Brunetti and received no compensation for his statement.

    “I view your company as one that puts my interests first. I think that is very uncommon and very refreshing. “

  • Jeanne P.
    Jeanne P. is a client of Johnson Brunetti and received no compensation for her statement.

    “Matt does an awesome job! So easy to understand and he listens to our concerns and addresses them! happy I chose your firm!”

  • Anonymous
    This testimonial was provided by a client of Johnson Brunetti and received no compensation for their statement.

    “I have been pleased with the help and service I have received from the company. I have met several team members on Eric’s team and have found all of them very well prepared to meet with me when reviewing my portfolio. I always feel that I am an important customer and appreciate that very much. I hope the firm continues to focus on the customer and maintains its great service. I think you do a great job for someone like me!!!! I’m happy I chose your firm!”

    Johnson Brunetti
    Welcome to Our New Website!
    Everything was designed with you in mind, making our retirement planning resources more easily accessible to you.
    Check out your new resource center, where everything can be organized by article type or topic
    Are you ready to speak with a financial advisor?
    Johnson Brunetti

    Investment Advisory Services offered through JB Capital, LLC.
    Insurance Products offered through JN Financial, LLC.
    Atlanta • Boston • Hartford | Tel: 800-208-7233

    JB Capital LLC is a federally registered investment adviser under the Investment Advisers Act of 1940. Registration as an investment adviser does not imply any level of skill or training. Information presented is for educational purposes only and is not intended as an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies.

    JB Capital's Form ADV | Disclaimer | Privacy Notice | Client Relationship Summary

    *Information about our Affiliation with the UConn Huskies

    Johnson Brunetti is a sponsor of WFSB Better Money, WCVB Better Money Boston, WSB-TV Better Money Atlanta, WTNH Money Wisdom, and WTIC Money Wisdom.