When Do Know Its Time To Retire from Your Employer?
- The first thing is to determine what your financial status is in relation to debt and if retirement now is the best time.
- Make sure your funds are in place in case of an emergency, e.g. the car break down and you need a new transmission or the roof has bad leak. Would you be prepared financially?
- This is time to reduce debt and avoid large purchases like a new car when a low mileage used car you could pay cash.
- Make sure your retirement income will satisfy your new living style away from the job.
- Check your health insurance to make sure if you'll need to keep your employer health plan or you be better with Medicare and a Medigap to supplement plan for health insurance. Maybe you would benefit from a Med-Advantage plan. Check on that before you leave your employer's plan.
- Make sure your Will is up-to-date and any other Estate Planning is finalized.
- Check your retirement accounts and consider consolidating them down 1-3 accounts so the tax payments are more manageable.
- Now you may feel ready to retire but don't make the big mistake withdrawing too much from you 401k, 403b or Thrift Saving Plan and know the correct percentage to withdraw and what tax implications you may be expose.
- This is a good start to check before you retire.