You have been busy building your savings through your company plan and are wondering if you are able to retire in the next 5 to 10 years. There are many questions that need to be answered before you commit to a retirement date.
Do you have enough money saved to retire?
Can you afford to retire? This is probably the most commonly asked question. However, there are some key questions you must ask yourself first. How much money can I safely take out of my retirement plan and have it last me the rest of my life? This answer here is dependent on how well you can sleep at night with money invested in the stock market. A great start to answering this question can be found by taking the risk questionnaire found below.
Another very important question, how much income do I need to to live comfortably in retirement? If you haven’t started tracking your spending habits, this is the time to start. You don’t want to go into retirement with a vague idea of how your spending will change. You need to know what your needs and wants cost on a monthly basis.
Have you been offered an early retirement buyout package? If so, we can help you understand the process and work through how this will effect your retirement plans. If you do retire, we can help with how to take distributions prior to age 59 1/2 without paying penalties.
If you have company stock options, what is your plan to execute those stock options? How are your options taxed in retirement? How do stock options effect your social security decisions?
When is the best time for you to take Social Security? Should my spouse take spousal benefits? Should you take spousal benefits? How does social security effect my taxes when selling low cost basis stock?
What is the best way to diversify your company stock? Do you understand how the trustees’ cost option or Net Unappreciated Assets (NUA) rules can work to allow you to take company stock out of your retirement plan and pay almost no taxes?
Can you afford to gift to your children or charities? What is health care going to cost?