As a former Chevron employee and current financial advisor, I know firsthand that planning for retirement can be daunting. You might be asking yourself questions like:

• How do I anticipate all the different factors that go into retirement?
• How much money is enough?
• What if I have an unexpected expense in retirement?

If you’re feeling like 2023 is your year but are afraid to take the plunge, read on. These are the top three considerations I discuss with my Chevron friends and clients when they ask me those questions.

1. Wait until at least age 55.

Every case is different, but in general, it’s best to wait until at least age 55 to retire. Every year you wait increases the likelihood you won’t run out of money. 

Talk to your advisor about scenario planning (more on that in the next point) to figure out what age makes sense for your specific situation. And remember, there are always exceptions to this advice if it’s a matter of your health or other serious issues.

2. Determine your post-retirement budget.

When you picture your life in retirement, what does it look like? Are you jet-setting the world with your spouse, or enjoying a quiet life at home with your grandkids? Working a part-time job to stay busy, or finally pursuing your hobbies and passions full-time? Upgrading to the big truck you always had your eye on, or getting every last mile out of your current ride?

These are important considerations, as they’ll impact the amount of money you’ll need in retirement. If you think you’ll have similar cash flow needs in retirement as now, that’s important to know. Or, if you anticipate boosting your spending on vacations, supporting other family members, etc., that also needs to be taken into account. Once you have determined your budget needs pre- and post-retirement, your advisor can help you put together a strategy around your paychecks, how much to save in the plan, and what number you need to hit to retire.

3. Do scenario planning.

We offer free scenario planning, called a Monte Carlo analysis, to help clients measure whether they could retire successfully. This simulation runs thousands of different scenarios based on your personal financial data. Then, it analyzes your “probability of success” in reaching the amount of money you’ll need at your desired retirement age. Best of all, this is a key tool for answering the question, “How much money do I need to retire?”

Whether it’s with Warren Street or another financial advisor, ask your advisor to help you put together a plan that accounts for these different situations, so you can set yourself up for success. As long as you have the relevant information ready to share with us — such as your current assets, expected savings, and time horizon — the analysis process takes no longer than 30 minutes. That’s a short amount of time to invest in your peace of mind!

Many Chevron employees are looking to retire this year, especially given that Chevron stock prices have generally held up. Whether you’re in the “this is my year” camp or still have another five years in you, I’d love to talk with you. Let’s put the numbers together and see what’s possible. I’m here to answer your questions and help you run the numbers, but the final decision is always yours.

Len Hanson

Wealth Advisor, Warren Street Wealth Advisors

Investment Advisor Representative, Warren Street Wealth Advisors, LLC., a Registered Investment Advisor

The information presented here represents opinions and is not meant as personal or actionable advice to any individual, corporation, or other entity. Any investments discussed carry unique risks and should be carefully considered and reviewed by you and your financial professional. Nothing in this document is a solicitation to buy or sell any securities, or an attempt to furnish personal investment advice. Warren Street Wealth Advisors may own securities referenced in this document. Due to the static nature of content, securities held may change over time and current trades may be contrary to outdated publications. Form ADV available upon request 714-876-6200.