Do You Want to Know When You Can Retire?
23 Sep 2015
You can find out whether and when you can retire. But, there are a lot of nuances to that decision.
Today’s typical retirees could have up to three sources of income. They’ll have Social Security; they’ll have some sort of defined benefit or defined contribution plan (401(k), 403(b), pension), whether they’re self-employed or not; and then they will have their private accumulated assets, which could be IRAs, personal savings, personal investments, equity and property, etc.
I don’t make a general recommendation as to when people should apply for Social Security, because it’s a very individual decision. It depends on a lot of factors. Are you a widow or widower? Are you currently married? Were you previously married? Did your divorced spouse make more money than you made? Depending upon your financial situation, perhaps you should start drawing your Social Security benefit at age 62 or defer until age 70.
An entire set of planning assumptions is based on just the Social Security consideration. And then we need to coordinate all the other sources of income that an individual has, along with tax treatment, minimum distribution requirements, and legacy planning. The list of considerations goes on and on. Maybe you know a lot of the answers, but most people wonder where to begin. Let me reassure you that you are not alone.