Every American dreams of retiring on easy street with all the money they need, surrounded by the people they love and able to live out the rest of their days in luxury. However, being able to achieve that goal is dependent on a critical calculation. You have to figure out if your resources will stretch far enough. If you retire too early, you face an increased risk of outliving your money. The age at which you stop working is more important than ever. Here are three ways to determine when you can retire.
It should go without saying that you need to make sure you have enough money to retire on. This will require an accurate projection of your future expenditures. Bear in mind that things can change, so plan for problems that might arise. Depending on your situation, you may decide to liquidate certain assets such as a big house you no longer need. It’s also worth examining whether or not any of your assets could be deployed more efficiently. For example, you might choose to transfer retirement funds into an account that earns more interest. This is also the time to consider redistribution of your portfolio into less risky investments.
Your Social Security Benefits
Virtually every American is entitled to Social Security payments. The amount each person receives will vary, but it’s primarily dependent on two critical factors: The age at which you retire and the amount you contributed to the fund in wages. Before applying for Social Security, you’ll need to gather several documents to be sent in with your application. These include your birth certificate, Social Security card, and marriage papers.
Unfortunately, more and more Americans are retiring in debt. While it is possible to retire even if you do have debt, there are additional considerations that you must take into account. This includes how much the debt is, when it will be paid off and the interest rate. Debt is unquestionably a complication when it comes to retirement. How you proceed requires careful thought and planning.
Deciding on the age at which you stop working, start taking pension payments and begin tapping into your assets is a critically important consideration. It will affect everything that follows. That’s only one aspect, though. No amount of financial planning can truly help you deal with the emotions of deciding when to end your career and begin your retirement. If you plan appropriately and walk away on your own terms, you’ll be in a better position than most.
Get your finances under control with our financial education courses!