You’re still working but inching closer to the average retirement age with every passing year. How do you know if you’re set and ready for retirement? Matt Dixon of Greenville, SC, provides these four signs you’re financially ready for retirement.
- Savings Exceed Retirement Goal: At some point along the journey, you most likely made a retirement investment plan. As you consider retiring, you’ll realize if your savings have paid off. You can use the “25 Rule” for evaluating your retirement funds. This rule states you should have about 25 times your annual expenses in your retirement funds. If you do, you’re all set.
- No Remaining Large Debts: Upon retiring, you don’t want any lingering large payments. Before you retire, your mortgage and other large debts or credit balances should be paid off. When these are paid off, your retirement funds go a lot further and you can enjoy retirement without worrying about covering these bills.
- Your Retirement Budget Is Sufficient: When you enter retirement, your income will become fixed. This is usually less than what it was when you were still working. Before retiring, Matt Dixon in Greenville, SC, suggests looking at your proposed retirement budget to see if it’s adequate.
- Healthcare Costs Are Provided: Healthcare can be costly, especially as you age. Things like prescriptions, blood work and doctor’s visits can send your costs through the roof. Matt Dixon in Greenville, SC, suggests staying on your employer’s plan or your spouse’s plan for as long as you can to ensure these costs are covered. You may find you need to sign up for long-term health plans or private care as well. If so, make sure they are included in your retirement budget.
Need to discuss your retirement finances with a financial advisor? Visit TruNorth Advisors to talk with Matt Dixon in Greenville, SC, today.