Are you ready for retirement?

22 May Are you ready for retirement?

Getting a change from your lifelong routine is quite nerve-wracking especially when you’re not sure whether you are ready for it or not. Tough decisions of life are like quiz exams. You are not sure about the option to choose until and unless you are completely prepared for it. Similar is the case when you’re deciding on your retirement.

It’s really important to take this decision at the appropriate time when you are completely ready for it emotionally as well as financially so that you can live this journey of your life like your best years. You should have an inner feeling of readiness before getting ready to cross this beautiful milestone of your life.

At this stage of life, your heart is filled with a feeling of excitement for freedom of life but at the same, you must be worrying about managing your financial funds. You must have searched for many studies of retirement savings and amount needed for retirement. A proper planning before your retirement will overcome this feeling of anxiety.

In order to make this simple, start planning for your retirement before actually getting retired. Start working on your financial funds so that you could have a strong financial status that you may want for your retirement.

But before planning let’s have a look at some figures that affect retirement funds. Some of the factors related to age that are vital for retirement plans:

Ideal Retirement Age

• Social security retirement age is 62 years when you are eligible to get benefits and the normal retirement age in the US is 65 to 67 years when you get full benefits of social security. Although 62 is the minimum age required for getting social security benefits that a person could pursue these benefits at that age. One should wait for retirement as well social security for three to four more years to get the complete benefits of the retirement.
• There are some rules set by the government of the US to withdraw money from your IRA (Individual Retirement Accounts) accessible such as 59 and a half rule, retirement 4 percent rule, 55-year old rule, 72 (t) payment rule and much more for the benefit of the people of the US.
• 59 and a half rule is made into existence for the appropriate access to the IRA assets and signifies that age matters a lot for the retirement accounts. If you are under 59 and a half, you are not supposed to touch your IRA accounts for withdrawal. In case you withdraw funds, you will have to pay a penalty of 10%.
• An important rule of thumb is the 4 percent rule. If anyone seeking retirement follows this rule which means to withdraw 4% annually of their IRA or 401K plan and their account should last during their retirement years. People would have a high likelihood to get their retirement account run smoothly for a longer time. According to this rule, a retiree can know the number of funds to withdraw from his retirement account every year.

How can you know that you’re ready for retirement?

You need to ask two things to yourself when thinking of getting retired.

Are you emotionally ready to get retired?

This requires you to make thought procedure little advanced to think of the coming days you will be occupied with no work. Do you want to spend the rest of your retire years and not get hit by boredom? Do you have anything to make your time spent well like your working days or it would be better than that? If you have positive and self-satisfying answers to these questions, you are emotionally ready for getting your work-off for the rest of your life and live a life of freedom. You can choose to live even better life by choosing suitable retirement plans on Executive Wealth Solutions.

Are you financially ready to get retired?

The most important thing to make your life easy is getting financially strong. Even though you want a relaxed and free lifestyle with no work and no office, you still need to check on some things that make you realize that you are financially ready for retirement or not. It is observed that a retiree cannot carry on his comfortable lifestyle on social security funds only. He has to make goals prior to his retirement in order to become financially strong.

To get financially strong one can:

• Be sure to make enough savings to survive easily at the time of inflation. Inflation and retirement savings are two sides of a measuring balance. They both need to be balanced well to run a smooth life after retirement.
• Make sure to clear all your debts and funds before the time you get retired.
• Retirement plans help a lot to serve you a better lifestyle. When you know that your future is much secured by retirement plans along with social security, you will be able to enjoy your freedom to the fullest. EWS team experts help you attain financial freedom by at the time of retirement and afterward just by providing you the right guidance for the right plans.
• Before getting retired, you must have some retirement goals to achieve. Be prepared and get those goals achieved before retirement to have a relaxing freedom vacation for the rest of your life. According to studies on retirement savings, the savings goal that you have for retirement should exceed your expectations. We here at EWS offers tax-free savings plan for different categories whether it’s for retirement or college education or any other service.
• At the time you think of retirement, make sure that your healthcare is covered by a plan as healthcare is increasing rapidly these days.
• When you are going to retire, what will you do to spend your days? You must plan to involve in a part-time work, hobby, travel or anything that you enjoy doing so that your freedom won’t become boredom for you.
• Avoid procrastination on financial decisions. Once you missed the opportunities and delay in investments you will have to face the difference in the economic cost of procrastination. For example, if you start investing in a plan 10 years before, you will get a good amount of savings. On the contrary, if you invest in that same plan 4 to 5 years later, it will provide a very significant result that could impact your retirement lifestyle. So, it’s important to start investing in savings plan if you are in your 30’s or 40’s to have a lot of time for your investment to grow.

The economic cost of procrastination can be felt if you make the decision quite lately and have to face a loss of income in your retirement.

Experts say that we should be investing 15 -20% of our income towards retirement starting at an early age.  The average American today saves 4% of their income or the maximum amount their employer matches to their deferred compensation plan. If Americans continue to invest 4% of our income throughout our working life we will continue to have a shortfall in income during our retirement years. It is imperative that we increase our contributions and discipline ourselves more to try to increase the contributions yearly by at least 1 – 2% until we get quickly to the 20% minimum anything we contribute additionally is a plus.

Executive Wealth Solutions provides you with the best solutions and advice on which plan to choose to take into consideration your status of income and other financial factors. We have the expert insurance advisors that help our customers get the right decision by choosing the right plan.