How to Know When You Can Afford to Retire
It’s a long journey across your professional career to the promised land of retirement. One of the big questions you face is whether you’re finally ready to make the transition. Individuals have to decide when they’ve achieved their professional goals but also when their retirement income, pensions, and social security will be enough to live on for the rest of their lives.
Knowing where you stand can help you make smart, informed decisions.
Ready? Let’s dive in…
Know Your Destination
What are you looking for in retirement? Are you planning to load up the RV and drive cross country? Are you looking forward to getting away for that European vacation you’ve always dreamed of? Maybe you’d rather to sit on your front porch and watch your grandkids play? Perhaps you’ve always dreamed of turning that hobby into a small business.
Whatever your dreams are, knowing where you want to be is the first step in knowing how close you are to getting there.
Mapping the Road Ahead
Keeping the destination in mind, it’s time to realistically assess where you are now and map the income you project against your future expenses. Retirement income includes not only personal assets, income from Social Security, pensions, and retirement plans, but also any work you may intend to do in your retirement. What expenses can you expect over the course of your retirement and will your expected income be enough to cover those?
There are a number of useful tools online to help you chart the course. Much of the road ahead will be unknown to you. Your total expenses are determined in part by how long you may expect your retirement to last and how much unavoidable, but unpredictable costs such as health care may affect your journey.
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Consult a Local Guide
When seeking a restaurant in an unfamiliar town, you consult Zagat, seek out reviews online, or ask a friend who lives nearby. Getting professional retirement planning help early will help you reach your destination faster and can chart you through the rough patches safely. Having an experienced guide help lead you is always a wise course.
Retirement is one of life’s big transitions. It is important to have a comprehensive plan in place so that you can enjoy your retirement. Whether you want to travel, spend time with loved ones, or pursue a new passion, proper planning is a hallmark of successful retirement.
Call 419-491-0909 today to start your free retirement consultation.
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