When Should Lockheed Martin/Aerospace Employees Retire? 55, 60, or 65 — Which Wins?

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Today, we're breaking down one of the most common questions we get,
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right? What is the most beneficial age to actually retire? And we're specifically
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talking to Lockheed Martin employees on this big decision.
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Welcome back to Best Advised Podcast, guys. I'm your host, Rob DeVallio.
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I'm here with senior advisors, Mike Allen and Steven Young. Gentlemen,
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welcome back. Yeah, I'm studio still still getting redone. So we're having
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This two weeks in a row. We're on the road.
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Real world is smacking me in the face. Yeah, that's foam renovations.
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Exactly. So we hear three common ages, right? Right. We hear what? 55, 60 and 65.
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Right. Can we touch on 55? What does that look like?
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Right. So yeah, 55, it's, it's when we get a lot, you know, Hey,
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I want to retire, you know, 55 or early, right? It could be, you know, 56, whatever.
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What does that mean? Right. So this is where having a clear plan in place,
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right? We want to clearly articulate, okay, I want to retire,
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you know, 55. I need X amount per month for my expenses.
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These are my goals. Right. So then we see, okay, this is where we are today,
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right? In order to make that happen, what do we have to do? Like,
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what are the variables that we have to move to make that happen,
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right? And we've seen it over the years.
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Clients will come in, be like, I want to retire at 55, you know, vacation home. And then,
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As you move through life, plans change. Yeah. I think I'm going to stick around
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a little bit longer because I'm enjoying what I'm doing, right?
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Maybe the vacation, we don't really want to be locked in, right?
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And I'm actually working with a guy who's retiring.
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That was his plan, right? And now he's 63, 64 and getting ready to retire.
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So shoot, my plan was to retire at 20,
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Man. Yeah, it's crazy. That's nuts.
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That didn't happen.
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And if we do retire for 55 or early, let's say, what are we going to do?
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You know? Right. So that sense of purpose and structure that you had from getting
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up every day, going to work, accomplishing tasks, we need to be,
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we need to fill that with something. Right. So what are we going to do? Cause we can't just.
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Sit there and die.
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Like, yeah, I love people too. I mean, at 55, you may still have kids, kids in school.
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You know, you got to make sure you're able to afford putting them through school
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or just putting food on the table for them and everything. So there's a lot
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to think about when you're thinking about 55 healthcare. How are you going to
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pay for that healthcare?
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Go 55 to 65, a Medicare kick zone.
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Right. It's something that a lot of clients don't even think about,
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right? They think about, this is what I want per month.
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Okay. What about healthcare? Oh, yeah. I guess we should put that down.
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Well, I guess. Yeah. Also, they retired before 55, where all their money's in
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their salaried savings plan.
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Right.
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For one, it's going to be taxable, but are you going to be able to get that
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money out without penalties?
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People think about diversification, you know, all right, I'm going to have,
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you know, US stocks and small companies. I'm going to have international.
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I'm going to have bonds, fixed income.
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Well, they don't think about diversifying tax strategy, right?
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So we need to have some pre-tax, off would be good, and also after tax,
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right? Money that we can access prior to 59 and a half to bridge that gap.
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Because that's hard to kind of account for in your head, right?
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Especially if it's just a regular IRA, right? You're not accounting for the 40, 50% taxes.
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Right, exactly. So it's something we have to be mindful of when we're doing
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our plans. We're looking at...
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We're, you know, playing it live. I love playing it live. Yeah,
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yeah. It's like, for the 55-year-olds of your clients, How did that work out
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for them? Are they comfortable?
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Some maybe. What we do is we focus on, first, let's get to retirement.
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What's your retirement goal? Because I always see my financial plans in my head,
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a picture of we compartmentalize travel, even the mortgage, retirement,
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weddings, and all that fun stuff, college.
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And we say, okay, well, first off, let's focus on getting you the long,
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the long goal, retirement, getting to that. Like then we plug in maybe a wedding
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or we plug in about travel,
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Travel, start a business.
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You know, so it's,
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Do you have the financial freedom to retire at 55? And we've taken many clients
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there, but a lot of times when they get there, like, you know what?
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I kind of enjoy what I'm doing. So I'm going to keep going, you know?
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Yeah.
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So it doesn't always work out. That's why we adjust plans as we go along. Right. We got to
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Move and pivot as life. Yeah. As you move through.
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But we'd love to be able to tell somebody they can retire at 55.
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But then you're like, okay, you're retired. But now what?
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What are you going to do? Because a lot of our social interaction comes from work.
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You know, I got to hang out with you guys and everything. Yeah,
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pretty good. I'd miss you guys.
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Okay. So let's continue playing a lot. Where are we with 60?
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Yeah. Does that look like?
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Yeah. So 60, you've had, you know, a few more years to put money away in the salaried savings plan.
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That health care gap that we talked about, funding, health insurance prior to
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Medicare age, right, becomes a little bit shorter. So it's a little bit less
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demanding financially on retirement, but we've still got the life planning.
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It's amazing, though, those five years make such a huge difference.
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So like when you're asking about clients that want to retire up to 55,
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we had to shoot them down. And so, you know, we need to calm down a little bit here.
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and then during when we're playing it live with our clients because i love our
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financial planning software we can we collaborate with our clients we work with them so we
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we have a what if 55 and it's like well you're going to run out of money it's
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like 60 probability hitting your quota then we say okay what about five years
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more yeah does amazing things to plans and
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It's just kind of right that's probably the most you're making in your life at that point
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Right you're really enroll in 55 to 60.
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Those five years are kind of like 20 years from 20 to 40 almost.
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Right. A lot of times kids are out of college, right? So now we can really turbocharge our savings.
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You're not spending on that, on the daily kids.
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Yeah, we've had class, you know, okay, we start with early retirement now,
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we're ready to keep working.
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And then we get to 60 and it's like, okay, you know, we're going to retire from
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this job, but we're going to go start a business.
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It's more about financial freedom.
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Financial freedom.
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For a lot of people.
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Yeah. It's where that second and third career comes in. Like we have great,
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lucky clients and retired right started a business it's doing very very well
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and we were able to help them you know through that journey a long way and it's
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neat to see it from an idea to to fruition.
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Yeah i bet that's a that happens a lot with lucky martin employees and specifically
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like kind of have a fun job also not that their job isn't fun that's pretty
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dang intense yeah almost like let's make a hobby job we've had
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Clients another lucky couple got a lot of lucky couples it's Amazing that they
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had decided they were going to open up a store when they retired
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Then. Yeah, that's fun.
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A part of their life is also their mission is to help people.
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And so Salvation Army is huge for those guys, but then also they have a store,
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retail store, where they wanted to run that too. So we helped them build that,
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the structure around it. We found attorneys for them.
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We ran numbers with them, and it's worked out really well. And now we're going
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to help them get to the next stage.
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Next stage. Right.
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So then what would that next stage look like? Is that 65? Yeah.
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Is that the order, I guess?
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Right. I think I know that the clock stage is that everyone thinks about.
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It's funny. You're eligible for Medicare. So that healthcare backup is great.
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It's pretty much non-existent. You've still got to pay for healthcare,
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but the health insurance piece of it is largely taken care of.
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And this is where we see a lot of clients do consulting, right?
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Because they've got decades of experience, right? We're going to retire from
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the current job, but not necessarily completely. Completely flight,
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golf every day, go to the beach and start happy hour, four-flop.
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Because that's not good for any of us. Right.
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So we want to still be active, engaged, using the knowledge that we've gained
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over decades of experience, but on their own time with greater flexibility.
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Yeah. And what are you going to do that next after 65 too is important to you.
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But this is where social security comes into play. 65, 66, 67.
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When do we take it, right? That's great.
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Actually, we have a lot of clients that, when should I take it?
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Yeah. Or with the pension, the clients that do still have that pension, what do I do?
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Do I give 100%? Just if I take the most amount now and then there's nothing left for my spouse.
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So if you have other assets, maybe you do that. But again, that's where we look
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at all the different areas of your assets and your income buckets,
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how they all work together and how they're going to do that.
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your insurances, can you take a little bit more risk in one asset class or one
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income stream while utilizing the others?
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Okay. So we went over 50, 55 and 65, right? And again, with your clients, I play live.
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What is your suggestion here? Like, what do you tell your, your Lockie employees on the perfect date?
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I don't know if there is a perfect, run a financial plan.
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Yeah.
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Run a financial plan. We customize it for each of our clients and we collaborate
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with them on it. We work through it. We say, what are the different?
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When we're doing the plan, we look at the fun stuff first, quality of life,
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what you want to do, your goals and all that.
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Then we kind of get a little bit more, okay, what do you got?
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Okay. Yeah.
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Then, okay, are we going to be able to make it? Yeah. So putting all that together
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with your goals as far as the stuff you're going to do in your life,
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things you want to do in your life, because it's really tough when somebody's
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like, you know, I don't want I don't really do a lot of volunteer work.
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I don't really maybe have a bunch of family to hang out with because some people
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maybe, like I have clients that have moved all the way from California where
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they moved to Florida and they don't have a lot of family here.
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So are they going to move back to California when they retire?
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What's that? Yeah.
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And what's that? Tell them a different story. So we, again, customizing it and
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putting their plan together and saying, okay, where are these different income
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streams going to come from to fund your life?
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Unfortunately, there's no one-size-fits-all, right? There is no perfect age retirement.
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You know, it's something that we look at, we pull a plan together and say,
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and it changes over time, right? So what might've been early retirement,
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now is looking like later retirement, second, third career, right?
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So we got to move and pivot as we move through life.
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We have a financial coach that helps them move along.
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Thank you guys. If you want to talk to Steve or Mike, I'm going to leave a link
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in the description for you. And remember folks, the secret to wealth is not
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what you earn, it's what you keep. Happy days, everybody.
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This podcast is for entertainment and educational purposes only and is not intended
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as personal financial advice. Before making any financial decision,
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please do your own research and consult a financial advisor as needed.