Many people look forward to the day when they can retire. For some, the time may be now. For others, this could be many years down the road.
Unfortunately, it can be difficult to determine if you are in position to retire. Even if you’ve been saving money for quite some time, it doesn’t necessarily mean you’re ready to hang up your work boots for good.
Before we go any further, remember this: no two people are in the same position. For example, you may have access to more money in your retirement. However, you may also find that your expenses are higher than the next person.
With all this in mind, it’s imperative to focus on your personal and financial situations when deciding if you can retire. By taking this approach, you won’t get lost as you consider your options in an attempt to decide which steps to take next.
If you’re on the fence in regards to whether you can retire at the present time, there are some important points to consider. Here are several questions you need to answer:
How much money have you saved for retirement?
This is a basic question, but it is definitely among the most important. Remember, you won’t be working any longer. In other words, you won’t have a regular source of income. This is why you need to have enough money saved.
For example, an IRA is one of the best strategies for saving for retirement. We discuss this on our website, noting the following:
“At first glance, the concept of Individual Retirement Accounts (IRA), 401(k)’s and other retirement plans seems simple enough: A structured way to save for your golden years while deferring taxes on your growing nest egg.”
It doesn’t matter how you have saved money for retirement. What matters is that you review your savings to determine if you have enough money to retire.
What are your monthly expenses?
Many people take the time to focus on their income in retirement, but never look into the fact that they will still have expenses.
From your mortgage to car payments to utilities, it goes without saying that you’ll have to part with some money after you retire. Your goal is simple: you must have more retirement income than expenses.
Don’t wait to retire to review your monthly expenses. Instead, do this before you make the move so that you can guarantee yourself of being on the right track.
What will you do for benefits?
Once again, this is a point that is often overlooked. It’s imperative that you have a plan for securing benefits. For instance, you may have relied on your employer in the past for health insurance. Where will this come from after you retire?
The same holds true for other types of benefits, such as life insurance. Since you’ll have to purchase your own benefits, it’s important to work this into your monthly budget.
Everyone takes a unique approach to retirement, but there are five basic steps we suggest that you take:
- Survey your assets.
- Make note of your expenses.
- Estimate how much money you will need to get by in retirement.
- Define your goals, such as what you want to do after you retire.
- Get professional help.
These are not the only steps to take as you close in on retirement, but they are among the most important. As you collect more information, it’ll soon become clear as to what you should and should not be doing in regards to your retirement.
At our law firm, we know that retirement planning is a big deal for most people. We also know that some are lost and looking for answers.
If you require any assistance with your retirement plan or estate plan, you have come to the right place. Contact us online or via phone to ask questions and/or setup a consultation. Once you have a qualified legal team guiding you, it’s easier to feel better about your future. We’ll do whatever it takes to provide you with the assistance you need.