Been doing this for almost 30 years now, started when Eversource was still NU back in the 80s. Thinking about retirement in the next 5-7 years but wondering about the financial side. Anyone here transitioned from active auditing to retirement? The irregular income from contingency work makes traditional retirement planning tricky. Most financial advisors don't understand our business model.
Retirement planning for utility auditors?
Vince, I've been wrestling with the same questions. The feast-or-famine nature of our work makes it hard to predict retirement income needs. I've been trying to build up a larger cash reserve than most retirement guides recommend, just to smooth out the income fluctuations. Figure I need about 18 months of expenses saved beyond normal retirement accounts.
One advantage we have is that this work can be done part-time pretty easily. I'm planning to gradually reduce my client load rather than stop completely. Keep the brain sharp and maintain some income stream. ComEd territory has enough complexity to keep me busy with just 2-3 clients if I want.
The other thing to consider is health insurance. If you're not covered through a spouse's plan, individual policies can be brutal. Might be worth maintaining some level of business income just to qualify for better group rates through professional associations.
Good points all around. I've been working with a fee-only financial planner who specializes in irregular income professions - artists, consultants, that sort of thing. Much more helpful than traditional planners. Worth seeking out someone who understands variable income patterns.