Tip of the week: deciding when to retire
Careful financial analysis is required to determine whether a person can afford to retire – but that’s not the same thing as being ready to retire. It’s important to understand that it’s not only about money -- nonfinancial considerations can play a major role in deciding the timing. Here are a few from the professionals at HD Vest Financial Services:
- Emotional readiness. For some people, work provides not only a sense of fulfillment, but also the majority of their interactions and relationships with other people. Most people fully intend to keep in touch with coworkers after they retire, but often those relationships begin to wane. Do you have a plan to replace or add to those relationships after retiring?
- Staying busy. Twenty or even thirty years of retired life is a long time to just relax. Many retirees become bored. Prospective retirees need to think hard about whether they will be content just to relax and take it slow, or instead fill their days with new and exciting activities.
- Being in step with a spouse. Married people need to have an open conversation with their spouse about what life will look like when both are retired, and will be together for the majority of the day. For some, retirement will follow years of not having had any uninterrupted time with their spouse. They should talk about their respective visions for retirement, and always keep an open line of communication.
Although health coverage is fundamentally a financial matter, many people overlook researching what it will cost them in retirement, particularly if they are thinking of retiring before they become eligible for Medicare. It may turn out that they had made incorrect assumptions about their level of coverage and the amount they would have to pay for it.
HD Vest Financial Services® is the holding company for the group of companies providing financial services under the HD Vest name.
Securities offered through HD Vest Investment ServicesSM, Member SIPC, Advisory services offered through HD Vest Advisory ServicesSM, 6333 N. State Highway 161, Fourth Floor, Irving, TX 75038, 972-870-6000.