{"id":262,"date":"2010-09-01T11:46:57","date_gmt":"2010-09-01T15:46:57","guid":{"rendered":"https:\/\/blog.bradpine.com\/?p=262"},"modified":"2011-05-13T12:48:16","modified_gmt":"2011-05-13T16:48:16","slug":"262","status":"publish","type":"post","link":"https:\/\/blog.bradpine.com\/2010\/09\/01\/262\/","title":{"rendered":"Are You Ready to Retire?"},"content":{"rendered":"

\"\"<\/a>Ask anyone if they\u2019re ready for retirement, particularly after a difficult day, and you will likely hear an immediate \u201cYes!\u201d But when it comes time to seriously consider the issue, the question of readiness becomes much more difficult. How much should I draw from my IRA or 401(k)? At what age should I retire? There are so many factors to think about!<\/p>\n

At the Bradford Pine Wealth Group, we recommend splitting the retirement decision into two parts to help sort through all the important factors involved: First, consider your emotional readiness and your plans for the golden years. Second, consider your financial readiness, including the timing of your retirement, your income sources, and how much money you\u2019ll need to live the retirement you want.<\/p>\n

The first and most important question in retirement planning is whether you (and your spouse, if you are married) are emotionally prepared for the next phase in your life. What do you intend to do? Creating a plan for your retirement years will help ease the transition, so be sure to have a clear idea of what you want from retirement on top of leaving your job. Also, keep in mind that we often define ourselves by our careers, and that the sudden absence of the structure, relationships, and accomplishments in the workplace can cause some confusion and strain. How will you adjust for and prepare for this?<\/p>\n

Financial readiness can only be determined by taking into account the goals and plans you\u2019ve created for your retirement. From here, you can begin to determine how much that lifestyle will cost and compare it to your savings and the amount of income you\u2019ll be able to count on. At this point, you should consider any social security, 401(k) and IRA plans, or health benefits you might be entitled to during your retirement years.<\/p>\n

Of course, timing is a key component of determining both your savings levels and your income rates. Postponing your retirement will generate a few more years of income and saving, while an early retirement will do the opposite. Your age at retirement will also affect the amount of social security you\u2019re entitled to and your ability to take penalty-free withdrawals from your 401(k) or IRA.<\/p>\n

Other factors also impact your financial readiness and include your planned withdrawal rates from retirement savings, inflation expectations, and the impact of market fluctuations on your investments. It is often helpful to start with some rules of thumb; for example, you may estimate that you\u2019ll need an annual income of 60-80% of your pre-retirement income, which might roughly equate to drawing down 4-5% of your total retirement savings per year. From here, consider your goals and how much money you might need to accomplish them. For example, if you are thinking of joining a country club or buying a summer home or traveling a few times per year, you may need to rely on a higher percentage of your pre-retirement annual income.<\/p>\n

All in all, considering your emotional and financial readiness for retirement is a delicate and important thought process. With some reflection and an understanding of the key issues involved, you can help create a feasible plan for the exciting next phase in your life.<\/p>\n

For more detailed information about this topic, including advice on investment strategies and asset allocation considerations, read \u201cRetirement Income: The Transition into Retirement\u201d.<\/span><\/a><\/p>\n

If you are seeking detailed\u00a0information about rolling over your 401(k) or about managing your IRA, I highly suggest downloading my free eBook, \u201c10 Tips You Need to Know About Your IRA Rollover\u201d. <\/a>This short book is packed with critical information that will help you make the right decisions about your retirement savings.<\/p>\n","protected":false},"excerpt":{"rendered":"

Ask anyone if they\u2019re ready for retirement, particularly after a difficult day, and you will likely hear an immediate \u201cYes!\u201d But when it comes time to seriously consider the issue, the question of readiness becomes much more difficult. How much should I draw from my IRA or 401(k)? At what age should I retire? There […]<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[13],"tags":[19,12,14,27,15,26,10],"jetpack_publicize_connections":[],"aioseo_notices":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/s2p1nA-262","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":846,"url":"https:\/\/blog.bradpine.com\/2011\/06\/01\/powerful-steps-for-any-investor-from-ira-rollovers-to-financial-planning\/","url_meta":{"origin":262,"position":0},"title":"Powerful Steps for Any Investor: From IRA Rollovers to Financial Planning","author":"Bradford Pine","date":"June 1, 2011","format":false,"excerpt":"Congratulations! By reading this article you\u2019re taking an important step in your financial life, one that your future self will probably thank you for in twenty years. In helping clients, I\u2019ve found that there are many unique issues that people face every day, but there are also a lot of\u2026","rel":"","context":"In "Individual Investors"","block_context":{"text":"Individual Investors","link":"https:\/\/blog.bradpine.com\/category\/individual-investors\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/blog.bradpine.com\/wp-content\/uploads\/2011\/06\/Powerful-steps.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":678,"url":"https:\/\/blog.bradpine.com\/2011\/03\/16\/theres-still-time-to-contribute-to-an-ira-for-2010\/","url_meta":{"origin":262,"position":1},"title":"There’s Still Time to Contribute to an IRA for 2010","author":"Bradford Pine","date":"March 16, 2011","format":false,"excerpt":"\ufeff There's still time to make a regular IRA contribution for 2010! You have until your tax return due date (not including extensions) to contribute up to $5,000 for 2010 ($6,000 if you were age 50 by December 31, 2010). Normally, your tax return must be filed by April 15.\u2026","rel":"","context":"In "Retirement Planning"","block_context":{"text":"Retirement Planning","link":"https:\/\/blog.bradpine.com\/category\/retirement-planning\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1928,"url":"https:\/\/blog.bradpine.com\/2012\/05\/31\/the-biggest-risk-facing-your-retirement-procrastination\/","url_meta":{"origin":262,"position":2},"title":"The Biggest Risk Facing Your Retirement: Procrastination","author":"Bradford Pine","date":"May 31, 2012","format":false,"excerpt":"There are many risks that we all face when it comes to retirement. Economic crises, the risk of outliving your savings, and healthcare emergencies are all major concerns. We don\u2019t have control over them however we try to plan around them. \u00a0The single biggest risk you face as a saver\u2026","rel":"","context":"In "Retirement Planning"","block_context":{"text":"Retirement Planning","link":"https:\/\/blog.bradpine.com\/category\/retirement-planning\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":154,"url":"https:\/\/blog.bradpine.com\/2010\/07\/07\/early-distributions-from-your-ira-rollover\/","url_meta":{"origin":262,"position":3},"title":"Possibilities and Pitfalls: Early Distributions From Your IRA Rollover","author":"Bradford Pine","date":"July 7, 2010","format":false,"excerpt":"Here at the Bradford Pine Wealth Group, we believe in educating and informing our clients. In addition to providing guidance on investment options and strategies, we feel it\u2019s important to include insight on the nuts and bolts of account management.\u00a0 One area that people generally don\u2019t know about is the\u2026","rel":"","context":"In "Retirement Planning"","block_context":{"text":"Retirement Planning","link":"https:\/\/blog.bradpine.com\/category\/retirement-planning\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":467,"url":"https:\/\/blog.bradpine.com\/2010\/11\/30\/estate-planning-a-key-part-of-any-financial-strategy\/","url_meta":{"origin":262,"position":4},"title":"Estate Planning: A Key Part of Any Financial Strategy","author":"Bradford Pine","date":"November 30, 2010","format":false,"excerpt":"I sometimes hear from clients that estate planning sounds like something that only the very rich need to think about. This couldn\u2019t be further from the truth. In reality, an estate plan is, at its most basic, a critical part of ensuring that your wishes are carried out should you\u2026","rel":"","context":"In "Estate Planning"","block_context":{"text":"Estate Planning","link":"https:\/\/blog.bradpine.com\/category\/estate-planning\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":139,"url":"https:\/\/blog.bradpine.com\/2010\/06\/09\/roth-ira-rollover-or-not\/","url_meta":{"origin":262,"position":5},"title":"Roth IRA Rollover or Not?","author":"Bradford Pine","date":"June 9, 2010","format":false,"excerpt":"A key component to successful investing is determining how to position assets for maximum return after taxes.\u00a0 It matters not what you make; it matters what you keep.\u00a0 Did you know that as of January 2010 you are able to convert your Traditional IRA to a Roth IRA, regardless of\u2026","rel":"","context":"In "Roth IRA"","block_context":{"text":"Roth IRA","link":"https:\/\/blog.bradpine.com\/category\/roth-ira\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/blog.bradpine.com\/wp-json\/wp\/v2\/posts\/262"}],"collection":[{"href":"https:\/\/blog.bradpine.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.bradpine.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.bradpine.com\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.bradpine.com\/wp-json\/wp\/v2\/comments?post=262"}],"version-history":[{"count":0,"href":"https:\/\/blog.bradpine.com\/wp-json\/wp\/v2\/posts\/262\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.bradpine.com\/wp-json\/wp\/v2\/media?parent=262"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.bradpine.com\/wp-json\/wp\/v2\/categories?post=262"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.bradpine.com\/wp-json\/wp\/v2\/tags?post=262"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}