Many people start pining for retirement when they reach age forty, and by age fifty five, they may be asking themselves, “can I retire?“. Planning for retirement can be almost as exhausting as working. There are so many concepts to wade through like 401k rollover and early withdrawal penalties as well as other words and ideas that are not always easy to understand.
The best way to answer the question “can I retire?” is to talk to a financial advisor. Gather all your financial data such as retirement account statements, the values of any stocks or bonds that you may own, and recent W-2’s, and then schedule a meeting with an advisor. Before the meeting, spend some time reflecting on what type of retirement you would like to have. For instance, if you plan to maintain a similar lifestyle to the one that you currently have, then you will want a yearly retirement income that matches your current income. If you are willing to tighten your belt, than you may be able to get by on a percentage of your current yearly income. On the other hand, if you want the last part of your life to be the most decadent, you may need more money per year than your current income.
Also, although it may be difficult, try to make some projections about your life expectancy and approximate what sort of end of life care you would find suitable. Ask yourself if you are willing to live in a state nursing home or if you will need money for a state of the art assisted living facility.
Once you have gathered all your information together, reflected on the questions listed in the previous paragraphs, and met with a financial advisor, you will be able to answer the question “can I retire? Do not be surprised if your financial professional advises you to do a 401k rollover. Moving your funds from a volatile account to a more stable account is often one of the first steps people take when they prepare to retire.