Retirement is probably something you’ve been dreaming about for years – and we don’t blame you. Some want to escape to a sunny beach or calming mountain top, while others just want to sip coffee on their porch in the morning and escape the rat race. We’re here to help make that happen.
With all of the retirement tips floating around, we know it can be overwhelming. There’s loads of information out there and different approaches you can take. We want to make it easy for you.
Here’s a simple step you can take to see if you are financially ready to retire: Test drive retirement.
Here’s what we mean:
- Identify all your sources of retirement income -- social security, your 401k, savings, and pension.
- Determine your monthly income from those sources.
- Here’s where the “test drive” part comes in. Set that as your new monthly budget and continue to work.
- Direct any income that exceeds your new monthly budget to your 401(k) or other retirement plans to boost that balance during your “test drive.”
To be sure you can handle any peaks in expenses, such as holiday expenses and vacations, keep working for six months to a year and see how comfortable you are with your expected retirement income.
If you’re financially comfortable after your “test drive,” that might mean you’re closer than you thought to calling yourself a retiree!