When Is The Right Time To Retire?
With the ever-changing landscape of taxes, it is growing increasingly difficult to understand how
legislation affects clients and could possibly impact their financial future. As a leader in the financial
services industry for over 30 years, we get it. That’s why HD Vest Financial Services® is constantly
seeking ways to share the latest knowledge with you. We’ve created the Taxes & Investments Series
to share timely information and provide our Advisors and their clients with practical educational
Planning a date to retire can be simultaneously exciting and stressful. While it can be enjoyable to
determine how to spend your new-found free time, there are also concerns that arise when working
out the financial logistics of retirement. Concerns like, “How much can I afford to spend each year?
Will I run out of money? Can I afford to retire when I want to?”
You know you are ready to retire when:
• You are emotionally ready for retirement. For some individuals working provides not only
a sense of fulfillment, but also the majority of their interactions and relationships with other
people. Most people have the best intentions to keep in touch after they retire, but many times
when you don’t see someone on a day-to-day basis, those relationships begin to wane. Do
you have a plan to replace or add to those relationships after you retire?
• You have saved enough for retirement. With potentially 25-30 years ahead of you in
retirement, it is important to visit a qualified Advisor to run through your full retirement plan.
Your Advisor can help you determine if you can afford to retire the way you want to, and
work through how much you need to spend each month. They can also help you determine
how much volatility your investments can withstand without jeopardizing your ability to retire.
In addition, they can help you decide when it makes the most sense to start taking Social
• You are comfortable with your current level of debt. If you have large amounts of debt,
it may not be the best time to retire. You shouldn’t retire if you don’t have sufficient income to
make your debt payments, especially if those debt payments increase over time.
• You know how you will spend your time in retirement. More than 20 years of retired life is
a long time to just relax. Many people retire only to find that they’re bored. Decide whether you
want to relax and take it slow or fill your days with new and exciting activities. It will be useful to
your planning if you have an understanding of what you will do each day after you no longer go
Taxes & Investments Series
Picking the Right Time to Retire
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• You have reliable health insurance coverage. Having reliable health insurance is very
important in retirement. During the working years, many times individuals have access to
health insurance through their employers’ group coverage. Research where you want to get
insurance after you retire and how much it will cost.
• You have coordinated with your significant other. Have an open conversation with your
other half about what life will look like when you are both retired and spending the majority of
the day together. For some individuals it has been years, if at all, since they have had weeks of
uninterrupted time together. Talk about your respective visions for retirement and always keep
an open line of communication.
Retirement can truly be some of the most enjoyable years of your life, but the date you retire should
not be left to chance. Before you make the decision of when to retire, it is important to contact
a qualified Advisor to identify any potential blind spots. Careful, advanced planning will help you
transition mentally and financially into retirement.