Retiring Early? 6 Steps to Take

Retiring early might sound like a dream—but it takes more than wishful thinking and a healthy 401(k) to make it sustainable. Whether your target date is 55 or even earlier, retiring ahead of schedule demands a level of planning that’s sharper and more intentional. We also believe it should be deeply personal.

At LaTour Asset Management of Springfield, MO, we know that early retirement involves designing a life that works for you. And to do that well, you need more than ballpark numbers. You need a real early retirement plan. Here’s where to start.

1. Run the Real Numbers—Not Just the “Rule of Thumb” Ones

Forget the one-size-fits-all advice. The 4% rule or “multiply by 25” formulas can be helpful in theory, but they rarely hold up to real-life complexity—especially when you’re planning for a longer retirement window. You should consider:

• Will your spending change in your 50s, 60s, and 70s? (It usually does.).
• How will you bridge the gap before Social Security kicks in?
• Have you stress-tested your portfolio for inflation, market swings, and medical costs?

We help Springfield retirees model early retirement scenarios with precision and flexibility, so there are no surprises years down the line.

2. Secure Health Insurance for the Pre-Medicare Gap

If you retire before age 65, you’ll need to cover the gap before Medicare kicks in. Without a plan, that gap can become one of the most expensive parts of early retirement. It’s worth exploring:

• COBRA coverage through your former employer—usually for up to 18 months.
• Marketplace insurance plans, potentially with premium subsidies based on income.
• Spousal coverage, if your partner is still working and has access to a plan.
• Health Savings Account (HSA) funds, which can be used tax-free for qualifying medical expenses.

3. Know the Tax Impact of Tapping Retirement Accounts Early

Early retirement often means drawing from accounts before the “traditional” retirement age. But if you don’t follow the right strategy, you could trigger penalties and unnecessary taxes. We help clients:

• Use IRS Rule 72(t) to set up penalty-free withdrawals.
• Create tax-efficient withdrawal plans using a mix of taxable and tax-deferred accounts.
• Plan Roth conversions to lock in tax-free growth while brackets are still favorable.

Your money should be working for you—not working against you.

4. Reevaluate Your Investment Allocation

Leaving the workforce doesn’t mean you stop investing. In fact, your portfolio still needs to be active —just more intentional. An early retirement timeline usually calls for:

• A balance between growth and stability to ensure your assets last.
• Thoughtful diversification across asset classes.
• Annual reviews to adapt to market conditions, interest rates, and your evolving needs.

At LaTour, we design strategies that give early retirees in Springfield both protection and growth potential—because your retirement could last 30+ years.

5. Create a Sustainable Income Plan

A paycheck may stop, but your need for steady income doesn’t. That’s why we build retirement income plans that are built to last. Here’s what we focus on:

• Social Security timing, especially if you’re planning to delay until full retirement age or beyond.
• Withdrawal sequencing to minimize taxes while preserving portfolio longevity.
• Annuity options for those who want to supplement income with added predictability.
• Coordinating income streams (pensions, dividends, rental income) to smooth monthly cash flow.

Our New Generation Retirement® process walks through each layer so your income strategy supports—not surprises—your long-term plan.

6. Think Beyond the Numbers

Retiring early isn’t just a financial shift—it’s an emotional one, too. The best plans take your lifestyle, mindset, and purpose into account. Questions we help you explore include:

• What will give you purpose in retirement if work is no longer your structure?
• How will you spend your time in a way that energizes rather than isolates you?
• Are your lifestyle expectations realistic for a retirement that could span decades?
• Do you and your partner share the same retirement vision—and if not, how do you align?
• What role will travel, hobbies, volunteer work, or part-time income play in your plan?

The right financial strategy supports a life you’re excited to live. That’s what we work toward.

Ready to Make Early Retirement Work—for Real?

Retiring early isn’t out of reach, but it does require a plan that considers income, risk, taxes, healthcare, and lifestyle, all working together in sync. If you’re in Springfield or the surrounding area and thinking seriously about leaving the workforce early, now is the time to start making strategic decisions that will set you up for long-term success.

Call LaTour Asset Management of Springfield at (877) 888-5724 to take the next step. Whether you’re five years out or feeling ready right now, we’ll help you retire early—with confidence that lasts.