Do you wonder if you’re ready to retire with enough income?
Many people do. They wonder if they’ll have enough income to live the life they want after retiring from their full time career.
At Texas Financial and Retirement, we begin by analyzing all the income an individual or family expects to have during their retirement years. That includes any pension (those are rare nowadays) income, Social Security, 401(k)/403(b) plans, IRAs and personal savings. Then we compare that to the expected expenses (food and shelter, clothing, healthcare, etc.). And only then can we begin helping our clients to develop a plan for arriving at and enjoying a satisfying retirement for the rest of their lives.
After the first step (figuring out what income you can reasonably expect to have during your retirement years), there’s a test, of sorts, that you can perform for yourself.
Practice being retired.
Obviously, we don’t mean you should start staying home and not doing your work – your employer and coworkers probably won’t appreciate that. What we mean is that you should try living on an income equal to what you expect during retirement. See if that works and how it feels to you when you do.
It’s easier to say, “I’ll just reduce my cost of living after I retire,” than it is to actually do so. So, try it on for size. See if it fits you. And not just for a month or so – practice being retired for a year or two.
If you can live that way comfortably, you probably have enough expected income and can begin to transition into your retirement with confidence. We can help with that, so you maximize your income and minimize the tax burden on yourself and your future heirs.
If you discover you aren’t happy living on the amount you expect to have during retirement, then you probably need to work longer, save more and follow a plan to help you get to the income level you need. We can help with that, too.
James Holloway Sr. and the team at Texas Financial and Retirement are ready to help with your financial planning and retirement. Contact us at firstname.lastname@example.org or 903-534-5477 to ask about a free initial consultation where we can see if we’re a good fit for you. We’d love to help you get retirement right.