You’ve done the work and saved for retirement. You think you have that magic number that you need, but how do you know it’s time to walk into the office for your last time? Fiduciary retirement planner Mike Reeves of Strategic Wealth Designers joined the newscast to discuss how to know when you’re ready. General practice? Work as long as you’re comfortable.
“If you have saved enough for your retirement and don’t love going to work anymore, then now is the time,” Reeves says. “Some people enjoy their jobs and feel physically well enough to work. Some have a long list of hobbies they’d rather do instead. We see many of our clients do part-time work because it’s just something they want to do, not have to do.”
Having a long-term care plan in place is crucial to your retirement. Paying out of pocket for healthcare can be extremely expensive, so working on an income plan for retirement will make it less daunting. Either on your own or with an advisor, work on creating a budget for healthcare for after you are done working.
“The determining factor for how much you need saved for retirement is your lifestyle,” Reeves says. “Some want to travel the world and have exotic adventures while others just don’t want to have to go to work every day. A generic rule is dividing the amount you need per year by five percent. So if you need $50,000 a year, you will want a million dollar nest egg.”
It is important to be realistic when deciding when you can retire based on your income goals down the road. You may realize you have to work a couple extra years to afford the lifestyle you desire. To see additional stories surrounding business and economic news for the Indianapolis area, visit https://CBS4Indy.com/Strategic-Wealth and if you have a question for Mike send an email to email@example.com.