When is the right time to retire?

Me? Retire? What on earth would I do with all that time? That’s a sentiment most people probably wouldn’t utter. However, there are a few 60-somethings, even some 70-or 80-year-olds, who genuinely like to work.

Even more aging adults would like to escape the daily grind, but can’t afford to live on social security alone. Studies estimate that the number of Americans too poor to retire exceed 70 percent. When will those folks be able to retire?                                                                                                                                                                                                                                                                                                   

If you want to work . . . or have to work . . . beyond retirement age:               Here are a half dozen things to consider:

  1. It’s never too late to start saving for retirement. Whether you have a few years or just a few months before reaching retirement age, tighten your belt and sock away as much money as you can. While you  still work, you can contribute a specific annual amount to an IRS-approved IRA (Individual Retirement Account) or a Roth IRA. If your employer doesn’t offer those options, start your own retirement account with an independent financial planner.
  • Contact your local social security office. Find out the exact monthly amount of the social security    check you would receive if you quit working at 62, 65, 66, 67, depending on your age of eligibility.
  • Figure out how much money you’ll need to live a satisfying lifestyle in your retirement. Calculate   all your expenses: house payments or rent, taxes, utilities, food, transportation, medical expenses, etc. Measure all your monthly bills against your social security payments to see if you would need added income to retire at the earliest date.
  • Estimate the amount of money you could make working at a part-time job. Can’t afford to retire? Or don’t want to retire? Consider part-time work. Part-time income is subject to income and payroll taxes; and combined with other income, may change your tax situation. Even part-time earned income can affect your social security benefits, as well as your taxes, so seek expert opinion before you make a decision.                                                                                                     
  • Consider whether the benefits of working in retirement outweigh the costs. Add up what you’ll pay for transportation, food, office incidentals, attire and other work-related expenses, such as parking. If you’re going back to work for personal satisfaction, rather than for money, that may not matter. Either way, crunch the numbers to give yourself a clear picture of where you will be financially.
  • Get help from professionals. Due to complex tax and retirement benefit implications, it always pays to get a professional opinion. Review your circumstances with both tax and finance experts.

Start now. Go to aamllc.com to set an appointment with a certified financial advisor. Planning is critical.

Manage Your Money . . . financial facts for a brighter future provided by Advancd Asset Management LLC                          

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Ronald Van Surksum, CFP            

4555 Wilson Ave SW – Suite 2               Grandville, MI 49418                            


Phone: (616) 531-5220                             Cell: (616) 450-8439                  

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