5 Questions to Ask to Find Out If You’re Ready for Retirement


Getting Ready for Retirement

When most people enter the workforce, they can’t imagine the day they’ll retire. For many, it’s literally decades away – something they only think about if they can set aside money to put in a retirement fund, or when they make contributions to a savings account, IRA, or 401(k).

But time keeps moving, and every day sees us moving closer to retirement.

As that day gets closer, you’ll need to set clear goals to live the retirement you want. Here are a few things to consider as you assess your financial situation and prepare for the next stage of your life.


Are you consistently saving money for retirement?

Many employers provide employees with the ability to contribute to a sponsored retirement plan. Whether it’s a 401(k), 403(b), or Simple IRA, this is something you absolutely should do. Contribute as much as you possibly can to take advantage of employer matching, if offered, and max out your contributions each year whenever you can. This essentially provides you with money from your employer, for free, that will grow tax-deferred.

If you don’t have this option or have already maxed out your employer plan, consider looking at other vehicles to save for retirement. Roth IRAs, IRAs, and annuities are all options available to you, and they all have different benefits and drawbacks.

Be sure to talk to a financial professional who can explain your options and help you find the best combination of tools to meet your goals in retirement.


Assess your life insurance needs

When determining whether you’re ready to retire, it’s also worth looking at your life insurance. If you have a child, finish paying your mortgage, or make other major life changes, it’s worth assessing whether or not your life insurance coverage will meet your needs.

You can use life insurance to cover debts, tax obligations, and final expenses upon your death. It can help you provide for loved ones or allow you to make a significant contribution to charitable organizations you care about. It may be worth talking to an insurance specialist to help determine if permanent life insurance should be a part of your retirement plan.

With permanent life insurance, much like universal life insurance, you can also put extra money into the cash value account when you pay premiums. This money grows tax-deferred, and often with a highly competitive interest rate.

To make things even better, there’s no limit to the amount you can contribute to the account or your policy. It is possible to overfund a policy, creating an atypical tax scenario, but this is worth looking into as needed.


Consider purchasing annuities

Annuities are retirement savings tools that can be customized to suit your needs. You choose how you’ll receive money and have greater control over how you withdraw money than with a standard 401(k).

Many people buy annuities late in life, especially if they’ve maxed out their 401(k) or IRA, as another way to prepare for retirement. Annuities are highly stable and don’t tend to change with the markets, making them a solid option to provide an income stream in retirement.


Think about other insurance needs

There are a number of other insurance products that may benefit you, depending on where you are in your career, including critical illness insurance, disability income insurance, and long-term care coverage. These products can help you protect your finances and your legacy, and by working with an insurance professional, you can get a comprehensive picture of your coverage, your risk, and what your needs might look like in the future.


Don’t set and forget your insurance coverage

You need to plan carefully for retirement. You’ll need to deeply understand your social security benefits, other sources of income, your retirement holdings, and have some sense of what the future might hold. By working with an insurance professional and a good financial advisor, you can get the insight you need to effectively prepare for retirement.


Protect Your Future with Symmetry Financial Group

Symmetry Financial Group is an independent insurance provider working with over 30 of the best-known insurance companies. Symmetry works with customers to help identify their unique needs and find the very best products to suit them.

To find out how Symmetry can help you prepare for retirement, simply request a quote to get more information on the retirement solutions available. Video conferencing is now available, making it easy to get the help you need from home.

Click here to learn more about Symmetry Financial Group.

Related Posts