Considerations for Early Retirement
As a financial planner, the common question we hear is, “How soon can I retire?”. Many people have saved all their lives and look forward to retiring to a leisurely and more pleasing lifestyle. In this article, we’ll give you some tips to help see if you are retirement ready.
Let PFM Be Your Retirement Partner
The transition from earning a paycheck to retirement could be difficult for some if they do not have a comprehensive plan in place. You could alleviate uncertainty and worry by working with PFM to become retirement ready.
Retirement Readiness Checklist
What are your living expenses? It goes without saying that you’ll need to have a source of funds to cover your living expenses after your paycheck stops. You’ll also need to have an emergency fund set aside for those unplanned expenses such as a pricey car repair or medical emergency. And, of course, many retirees want extra funds to enjoy travel or spend more time on hobbies. Let PFM’s financial planning service help you identify and plan your cashflow needs.
When should you begin to take Social Security? The age you start taking Social Security distributions matter. Although you may be eligible to start as early as age 62, you could get more over the long term if you defer until your full retirement age or until the cap at age 70. As part of PFM’s retirement planning service, we will complete a Social Security analysis to determine the best claiming strategy for you.
How will you obtain healthcare? If you plan to retire before receiving Medicare at age 65, you may need to cover your healthcare expenses out of your own pocket. Private healthcare insurance and COBRA can be quite expensive. Coverage through the Affordable Care Act (ACA) may be available to you, but the laws are subject to change and you may have to meet certain financial requirements to maintain reasonable premiums. Let PFM guide you through these options as we develop your retirement strategy.
Are you aware of tax traps that could set you back? Did you know if you earn too much part-time income while collecting Social Security, your benefit may be reduced? Did you know that your IRA withdrawals and investment income may count against you in the calculation of your ACA premium? Are you aware that your required minimum distributions from your IRA may increase your tax bill if your accounts are not strategically aligned? Let PFM’s expertise give you peace of mind that your retirement plan is structured to minimize taxes and avoid penalties.
Let PFM Create Your Retirement Roadmap
At Professional Financial Management, we specialize in creating detailed financial plans to meet each individual client’s needs. The outcome is knowing you have a degree of certainty of your plan’s success. Call us today to learn more about how we can help you plan your financial future.