COVID-19 Alert: Blue Water Capital Management, LLC is still open during these stay-at-home orders. We are working from home offices and using remote meetings, but everything else is the same.
If you have concerns about the markets, or would like to have us look over your investments, please feel free to contact us.

Specializing in retirement planning and personalized investment management.

Continue Working

Continue Working

One of the ways to increase your chances of a successful retirement is to continue earning money. If you are willing and able, you could stay full-time, drop to part-time, or even work for yourself or consult.  All of these benefit from continued income, probable higher social security or pension benefits, and less withdrawal stress on the portfolio, but each approach has their advantages and disadvantages



Type of Work

Advantages

Disadvantages

Full-Time, 
continue saving
  • Can accumulate more assets
  • Maintain standard of living
  • If at same job, it’s a known commodity
  • Health insurance and other benefits continue
  • Can ride out market drop easier
  • Less free time
  • Less quality of life

Full-time,
stop saving

  • Increased standard of living due to  higher cash flow
  • If at same job, it’s a known commodity
  • Health insurance and other benefits continue
  • Can ride out market drop easier
  • No more additions to assets
  • Less free time
  • Less quality of life, but better due to higher cash flow

Part-Time

  • Standard of living may not drop much due to extra income
  • More free time and probable higher quality of life than working full-time (sample retirement)
  • If at same job, it’s a known commodity
  • Health insurance and other benefits may continue
  • Can ride out market drop easier
  • Suitable job may be hard to find
  • Likely no more additions to assets
  • If different job, could be stressful learning role
  • Health insurance and other benefits could cost more
  • May need to supplement income with portfolio withdrawals

Self-Employed / Consult

  • You control your work schedule
  • More free time and probable higher quality of life than working full-time (sample retirement)
  • May enjoy work more and/or make more money
  • Can ride out market drop easier
  • Could be stressful developing business
  • Lots of unknowns
  • Likely no more additions to assets
  • You may have to buy your own health insurance at a higher cost if spouse can’t provide
  • May need to supplement income with portfolio withdrawals

 

Besides monetary gains, other benefits of continued work include a sense of purpose, pride, and social and mental stimulation.  Many people find work more satisfying when it is optional.