Thinking about retiring, but not sure if it’s time?
If you’re thinking about retiring, but not sure if it’s the right time, you’re not alone. In this article from Investopedia, 6 Signs You Are OK to Retire, I offered this advice:
This may seem like a no-brainer, but many soon-to-be retirees simply forget to crunch the numbers. Before you ditch your career, it’s important to figure out if you can live comfortably on your post-retirement income.
Start by adding up your must-have monthly costs, including your mortgage or rent, groceries, electricity and other utilities. Then start adding in your “wants,” such as travel, entertainment, shopping and dining out. Once you’ve calculated your estimated monthly expenses, it’s time to figure out if you’ll have enough retirement savings to cover them. Add up all your Social Security payments, pension, retirement account distributions and any other sources of income. “Your retirement budget (if you retire in your mid 60s) should not exceed 4% of your investments plus Social Security and pension payments,” says Kristi Sullivan, CFP®, Sullivan Financial Planning, LLC, Denver, Colo.