Seniors: How Much Retirement Can You Afford?

Aug 8th, 2011 | By Dr Jerry D Elrod | Category: Senior Moments Blog

When Should I Retire?

For those on the cusp of retirement, this is not an out of bounds question.  Choosing when to retire is fraught with all kinds of implications.  Being sure you can maximize your income from all sources, while keeping a nest egg that will continue to protect your position, is a strategy requiring careful, prudent and wise planning.

Retiring early, in the current financial scene, is likely not a good idea.  However, there may be circumstances which encourage that possibility.  Investigating them carefully will reveal how well an early retirement choice would work for you.

Continuing to work, even part time, may be a choice of necessity.  However, that too must involve considerations which you and your trusted financial advisor should review with care.  If the tax implications are not in your favor, then working may be good for your spirit, but not your pocketbook.

Retirement Rules

The three rules of retirement are: protection of resources, continuing to save, staying aware of your investments.  How much retirement you can afford will depend upon your ability to watch your own situation with care and spend accordingly.

Making sure your own situation is one which is crafted to your particular set of circumstances and conditions will be a high priority.  By now, spending to keep up with others in retirement is surely an unwise practice.  If your portfolio allows for discretionary travel, purchases, etc., be sure to stay in touch with what is happening to your own economic picture.  What you planned a few years back may no longer apply.  How much you can afford may depend on the dynamics that have happened and may happen soon.

Just because your 40 years of employment suggests you deserve to live a certain life style does not mean that that life style can be perpetually afforded.  How much you can afford may vary with conditions beyond your control.

Preserving the integrity of your resources will require watchful care, professional and trusted counsel, a review of your monthly and annual expenditures against your income, while continuing to protect your basic principal. Exercising a discipline that protects your situation and, perhaps that of your off spring, will mean being able to live within appropriate means, while offering the gift of your prudence to family, when the time comes.



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