Retirement is something we all look forward to in anticipation. Naturally, it is a time in our life that we wish to reach sooner rather than later. However, this isn’t always possible for everyone. In order to achieve retirement, one must have a strong plan in place as well as the goals they are looking to achieve.
But, what happens when you are ready to retire at the end of the year? How do you know you really have enough to retire? If you are facing these questions this year, chances are there are plenty more you are asking yourself. Luckily, we have built some tips to help you with this determine if you have enough for retirement so you will feel comfortable retiring at the end of 2016.
Create a Financial To-Do List
First things first, you will need to create a list of things that must be accomplished throughout the course of the year. This is something that is better completed as early as possible. Doing so at the beginning of the year will help you to avoid any nasty surprises when it comes time for retirement.
Start by looking into your health coverage and making any arrangements necessary for Medicare or Medicaid. Depending on the actual date of your retirement, you may need to make plans to enroll in these items early.
Also, spend time looking at your IRA and 401k plans. There are certain obligations that will be put on you depending on your age. Understanding how much you will be expected to pay in the way of taxes and penalties will be helpful when it comes time to plan your financial future.
Finally, your to-do list must also include taking time to sit down with your financial advisor for a chat regarding the future. You will need to know your finances are secure and safe during your retirement. Having this conversation now will help make the process of retiring more enjoyable.
Know you have Enough Money
So, how does one finally determine that they have enough money for retirement? Start by looking at your overall expenses. Examine these expenses to calculate just how much money will be necessary to sustain you through the rest of your life.
Also, don’t forget to calculate any costs associated with travel, hobbies or activities you wish to participate in after you do retire. Knowing how these items effect your retirement will help give you a better number of your needed retirement fund. Keep in mind that this number will include any social security earnings you will be eligible for as well as pension and retirement funds.
Plan for the Unexpected
Along with knowing you have saved enough for retirement, you also must sit down and make sure you have planned for unexpected expenses. This could be things like unexpected home repairs you must make or health care costs associated with your care.
It is a good idea to develop a good list of items that could happen and cause you to take away from your retirement total. Additional money should be set aside to cover these types of expenses so you aren’t forced out of retirement when something happens to come up.
Planning for your retirement is something that has taken several years to accomplish. When it finally comes time to take on the life of a retiree, it pays to make sure you are completely ready before the day of your retirement party. These tips are all things you can do now, during your final year of your career, to make sure you are ready for the big day.
To learn even more about this process or for help determining if you are ready to retire, contact us today.