retiring

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:

 

From Investopedia

 

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.

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Kristi Sullivan

My name is Kristi Sullivan and I have been helping people achieve financial security since 1996. I am a fee-only financial planner and public speaker. I do no investment or insurance sales for commissions. My clients pay me for guidance through their financial questions. I also work with employers to educate their employees about personal finance. I have been helping people make financial decisions for 18 years. I have worked in employee benefits and with individual clients/families. I hold the Certified Financial Planner designation. Sullivan Financial Planning, LLC is a Registered Investment Advisory firm with the State of Colorado. Areas of expertise include prioritizing savings goals, investment allocation, and wealth manager searches.