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3 Questions to Ask Yourself When Considering Retirement

Getting ready to send kids to college, preparing to buy a new home, putting money away for a rainy day are all smart moves that people make when they want to be fully prepared for various financial events. In some cases, the preparation for a life-changing event must be considered well in advance of getting to the actual date or season. This is especially the case for those of you who want to be properly prepared financially for your retirement days. So, with this in mind, here are a few signs that may or may not indicate that you are ready to retire when you make your decision. 

1. Are You in Lots of Debt and Making More?

For many Americans, the debt ratio tends to be very high, especially for those in their younger years. Buying a new sports car is often the norm for people who are young and want to possess the best, no matter the cost. However, as people begin to grow older, they may want to buy the best but cannot afford the high prices. Simply put, when people begin to get closer to their retirement age, the ratio of debt should begin to drop quite substantially. So, if you are presently in debt and continuing to purchase things that you have to charge to pay, your high debt practices usually put you in the category of those who are not financially prepared to retire any time soon. 

2. Do You Lack a Custom Retirement Plan?

Another sign that you may not be ready to retire any time soon is the lack of a customized retirement plan. To be ready without being exposed to loss in your later years, you need to make sure that you have started your retirement planning early. Your plan to retire should include a wide range of diverse financial resources that you can access in your latter years. For instance, you should make sure that you know what your company retirement plans will provide for you, an estimation of what your social security income will be as well as what it needs to look like, and when you want to pull down your social security income (i.e. at age 62, or a full retirement of 66 to 70 years based on the individual’s present age). 

3. Have You Considered Making Investment as a Part of Your Portfolio? 

There are many ways to make your preparations for your retirement years. While each plan for an individual may vary greatly, there are some commonalities in these plans that need to be considered as well. For instance, if you want to have access to additional finances that is aside from your company’s retirement program and your social security, you may need to think about building a portfolio for your personal investments. These investments can help you to take care of emergency situations and also to travel around the world as you have planned. If not, you may discover that you may live in a financial bind on a fixed budget.