Looking ahead to retirement may raise more questions than you expect. Full retirement age is defined by the Social Security Administration between 65 and 67, depending on your actual year of birth. But your employer may define it in a different way. This can make it difficult to determine when is the most appropriate time for you to decide to retire. If you retire too early without having appropriate savings, you could wind up in financial trouble. A financial advisor, as well as other professionals, such as a CPA and your estate planning lawyer, can help you put together a plan to meet your needs and goals so that you feel confident about the decision that you have made.
Start by taking inventory of your assets, writing down your savings balance, every debt, liability, insurance policies, and potential income streams. Don’t forget about any other valuable possessions that could impact your overall net worth as well as your estate plan, such as vehicles, properties, and collections. Creating a worksheet that you can adjust on a regular basis is the best way to do this.
The Bureau of Labor Statistics reported that the average American age 55 or above spend $67,000 per year. Other experts recommend the benchmark of having a million dollars in order to retire comfortably. Make sure that you discuss your personal goals with an experienced financial team so that you can feel confident about your decisions and chart a course that can be adapted over time. You may need to adjust your retirement age based on individual preferences or shifting circumstances in your family. But having the inside of outside experts can make this much easier.
Contact our offices today to learn more about how retirement planning works in conjunction with your estate plan.