But, just how close are you to it?
Need help deciding when you can retire? We'll sit down with you, and take a look at all the pieces of your financial situation. Then, using our financial tools, we'll help you put it all together to see your big retirement picture so we can help determine if you're on track to meet your goals. And, we'll do it for free.
Here are some questions you'll want consider:
- Where Am I Today?
Before you can set realistic goals, you must look at your current situation.
- Where Would I Like to Be?
We'll talk to you face to face about what's important to you. Does your retirement picture include traveling, working part-time, learning a new skill or volunteering?
- Can I Get There?
Together, we'll evaluate what's needed for you to achieve your specific goals.
- How Do I Get There?
We'll talk about a strategy and potential solutions tailored to your situation.
- How Can I Stay on Track?
It's important to meet at least once a year, or as often as needed, to help ensure that you stay on track to meet your goals.
Whether retiring is a year away or ten, you need to look out for yourself now. You have some important decisions to make about the money you have worked hard for. Consider the following:
You may need between 80% and 100% of your pre-retirement income.
This is the amount you can generally expect to need to maintain your standard of living in retirement. Since you won't be receiving a regular paycheck, you'll need to create your own income, which can come from several sources, including:
- Pension
- Social Security
- Personal retirement savings – IRA, 401(k) or investment accounts
- Part-time employment
- Income through investments offered by insurance companies
You may be able to take early penalty-free withdrawals from your retirement plan.
If you plan to retire before the normal retirement ages of 60 and 65, there may be ways for you to take early withdrawals from your retirement plan without paying penalties. Know the exceptions, so you can use them to your advantage.
Make your retirement plan work for you in retirement.
You've spent years saving and investing for the day when you can leave work behind and choose which interests to pursue next. Whatever you decide to do, you'll have to make your retirement money last.
The amount of retirement money you can withdraw each year depends on your age, risk comfort level, what type of investments you own and if you plan to leave your savings to others. A key to making your money last is ensuring you own different types of investments, such as stocks, bonds, mutual funds and other investments, to help reduce risk. Inflation should be considered too.
Don't let the rising cost of health care insurance weigh you down.
And just how do you do this? Plan for it. Each time you have a life change, it's important to re-evaluate your insurance needs, review existing coverage and review beneficiaries. Be aware that paying for your own health care insurance can be a really large part of your monthly expenses. In fact, many people keep working just for the health care coverage. And don't forget that there are many insurance needs: life, auto, house, etc., so be sure you're covered appropriately.
A local Edward Jones financial advisor is ready to help you roll your 401(k) plan assets over to an IRA to help you stay on track toward your retirement goals. Use our office locator or call 800-ED-JONES to find an office near you.