8. You’re not ready to retire
“Even if your portfolio is in top shape, you may not be mentally ready to let go of your working life,” Walters says. “Working takes up a lot of energy, and some people may be anxious, rather than excited, to consider months and years of unstructured time ahead.”
If you have the same opinion, you should think about getting a “second act” venture, working part-time, or becoming a volunteer for an organization you actually care about, Walters says. “If you just retire without a plan, however, you can overspend in an effort to combat boredom and run through your savings quicker than you planned.”
Marguerita Cheng recommends the idea of test-driving your retirement for a few weeks in order to gain a strong sense of how much money you will actually need and where you would feel comfortable living. Understanding your cash flow and your monthly needs in retirement could save you a lot of trouble.
