Do not rush into retirement.
You see your friends retiring.
You want to join them.
But are you ready?
According to a recent The Motley Fool article titled “Should You Retire in 2018?,” assessing your financial situation and goals will help you to determine whether you can retire this year.
What do you need to consider?
How much should you have saved?
A standard rule of thumb?
Your retirement savings nest egg should be ten times your ending salary.
To live a comfortable retirement, you will need about 80 percent of what your normal income was when you were working.
How do you get there?
Intentionally save and invest.
One method is through a 401(k).
If your employer provides one, you should stay as long as possible to maximize this benefit.
The extra years at work could also give you a buffer of money before you would need to use your nest egg.
Taking benefits before full retirement age will hurt you.
The amount you receive will be reduced indefinitely.
On the other end of the spectrum, you could receive an annual boost of eight percent if you delay taking Social Security until after full retirement age.
Before you retire, determine how it will affect your social security.
People get quite frustrated without a plan or structure.
Even when it comes to leisure, you should have an idea of how you want to spend your time.
Do you want to travel, see family, work on a hobby or volunteer?
While you do not need to plan every little detail of the rest of your life, a basic starting point will help.
You can build from there.
Retirement can be a fun and exciting time, if you are financially prepared.
If not, it can have the opposite effect.
Working with an experienced financial advisor can help you determine if you are ready for retirement.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.
Reference: The Motley Fool (January 7, 2018) “Should You Retire in 2018?”