5 Myths Keeping You Stuck at Work Past 60! | The Limitless Retirement Podcast

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Are you putting off retirement because you think you don’t have enough saved? You might be surprised to learn that many people with healthy savings are still working unnecessarily. Hi, I’m Danny Gudorf, founder of Gudorf Financial Group, and I’ve been helping people retire with confidence for over a decade. And what I’ve discovered is troubling. Many people with substantial savings are delaying retirement due to misconceptions about what they actually need.

Today, I’m going to reveal why you might be able to retire much sooner than you think. Recent research shows that Americans in their 50s, with around 650,000 in their 40s, often feel unprepared for retirement. But here’s the reality check. According to the Federal Reserve, the median retirement outcome… But here’s the reality check. According to the Federal Reserve, the median retirement account balance…

for people in their 50s is just 185,000. If you’ve saved significantly more than that, you’re already ahead of most of your peers. So why does it seem like everyone else is retiring before you? There are three fundamental reasons and understanding them could completely change your retirement timeline. The first reason is what I call safety in large numbers. Most people have no concrete idea

of what they truly need for retirement. So they fixate on some arbitrary large number that just seems just out of reach. Those with $500,000 think they need 1.5 million. Those with 1.5 million saved believe they need 3 million. According to a 2024 study by Charles Schwab, most Americans believe they need $1.8 million to retire comfortably.

Gen Z thinks financial success requires over $9 million in net worth, and Gen X and millennials put that figure at around $5 million. These numbers aren’t based upon reality. They’re psychological safety blanket. The appearance that others can retire while you can’t is often just an illusion created by these made up benchmarks. The second reason

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is what financial planners call one more year syndrome. This is when people who’ve actually reached their financial independence number convince themselves they need just one more year of working to feel secure. The root causes vary. Anxiety about not having enough, uncertainty about the transition away from work, and concerns about how to fill your day. These are just some of the examples. But if you genuinely want to keep working,

that’s perfectly fine. But if you want to retire and find yourself perpetually thinking you’re almost ready or you’re almost there, you need to challenge those thoughts. The sad reality of one more year syndrome is that it’s rarely just one more year. It often turns into five or 10 more years, wasting valuable time early in retirement. Time when you’re still active and you’re still healthy,

to do all the different things you’ve always dreamed of doing in retirement. The third reason it might seem like everyone is retiring before you is that you might actually be behind. Many people in their 50s didn’t save as much as they wanted to in their 30s and 40s due to other financial responsibilities. If this is you, don’t worry. It’s not too late. There are catch-up contributions and other strategies

to help you get back on track. When we understand these three reasons, we can break the illusion that everyone around us knows something we don’t. The truth is, people who confidently retire with similar or even less savings than you have shifted their focus from arbitrary numbers to understanding how they’ll replace their income in retirement. Those who successfully retire aren’t necessarily the ones

who’ve hit some huge random number. They’re the ones who’ve identified their actual income sources. They’re the ones who’ve identified their actual income sources, social security, investment withdrawals, and sometimes non-traditional approaches to work. This shift towards focusing on income rather than total savings is why many people successfully retire with $650,000 while others

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with a million dollars plus with the same level of spending feel stuck. Now that you understand the true measure of retirement readiness, let me share five strategies that could potentially allow you to retire years sooner than you thought was possible. Strategy number one is to know your exact income needs. The days of assuming you need some large random number are over. Sit down and figure out exactly what you’re spending.

And don’t assume you need 100 % of your current income in retirement. You won’t be saving for retirement anymore. Your tax bill should or potentially would be lower with proper planning. And you might no longer have a mortgage or other debts that you need to pay. Review your credit card and checking account statements for the last three to six months or use some type of budgeting software to track your spending. This step

is non-negotiable. If you want to retire confidently, you must know what you’re actually spending. Strategy number two is to identify your guaranteed income sources. Many people feel unprepared because they completely have ignored their income that they’ll receive in retirement. Social Security and pensions, if you have them, will make a massive difference. Visit the Social Security website to find your projected benefits

to include in your overall retirement plan. Now, I know many people worry about the future of Social Security, but this is a benefit you’ve been paying into your entire working career. Completely eliminating it from your calculations is way too conservative and could unnecessarily delay your retirement. Strategy number three is to calculate how many years of safe money do you have? As you enter retirement,

You typically can’t afford to be as aggressive with your investments unless your guaranteed income is covering most of your expenses. Your portfolio will need to start providing income and you need a plan if you enter retirement during a market downturn. Research from Michael Kitzes shows there’s a retirement danger zone in the five years before retirement and the five years after retirement.

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The way to protect against this is to have safe money in your portfolio, like bonds and other fixed income investments. The optimal asset allocation is V-shaped for equities, high in your early working years and potentially lower as you approach retirement, then gradually increase again after you get through that danger zone. Strategy number four is to stress test your portfolio.

Many people delay retirement over concerns about inflation, health care costs, or even outliving their money. But we can and should include all of these factors in your retirement plan. Software allows us to run different scenarios and adjust assumptions and see how your portfolio holds up under those various conditions. This isn’t guesswork. It’s about using the data to make informed decisions.

Strategy number five is to consider non-traditional retirement approaches. If you don’t feel quite ready, either because the numbers don’t work or you just don’t feel mentally prepared, there’s always other options. According to T. Rowe Price’s retirement study, about 20 % of retirees continue to work at least part-time in retirement. I’ve seen clients transition to part-time work with their current employer,

or potentially move to a lower paying but less stressful job, or have one spouse retire while the other continues to work. This is the secret hack to early retirement that few people discuss. Many early retirees aren’t actually 100 % retired. This transition phase can help you reclaim some of your time sooner and build confidence for your full retirement later.

Now that you understand why so many people seem to be retiring before you, despite your diligent savings, you can see that retirement readiness isn’t about hitting an arbitrary target. It’s about generating sufficient income to support your desired lifestyle. Let me share a quick example. I recently worked with a couple of 62 who had $800,000 in retirement.

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They thought they needed at least 1.2 million to retire. But after analyzing their spending and income sources, we discovered that they could retire immediately. Their Social Security would cover 70 % of their essential expenses, and modest withdrawals from their portfolio would handle the rest. By focusing on income rather than an arbitrary number, they gained five extra years of retirement.

that they would have otherwise spent working unnecessarily. Another client, 59 year old executive was convinced that he had to work until 65. He had saved $1.1 million, but was fixated on reaching 1.5 million. When we actually mapped out his actual expenses and his income sources, we found he could transition to part-time consulting immediately, reducing his stress.

while still allowing his investments to grow. This hybrid approach gave him the best of both worlds, more free time and continued financial growth. The key insight from both of these cases is that retirement readiness is highly personal. Generic rules of thumb and arbitrary targets often lead people to work longer than necessary. By focusing on your specific income and sources of income, you might discover

that you’re closer to retirement than you actually thought. Remember, the goal isn’t to accumulate the largest possible nest egg. It’s to create a life where work becomes optional. By understanding the true measures of retirement readiness and implementing these five strategies, you might find that retirement isn’t years away, but could be just around the corner. Now that you understand why retirement might be closer

then you think the next step is creating a clear roadmap to get there. And if you’re feeling ready but unsure where to start, watch my video on ready to retire. Follow these three simple steps. It breaks down the exact framework I use with my clients.