Sat Oct 12 2024, by Tyler Gardner

3 Important Considerations Before Retiring

Here are the three most important things that I would consider before retiring. I'm Tyler, a former financial advisor and portfolio manager, and I create financial content for free to help you make informed retirement decisions.

1. Assess Your Retirement Fund

Do I have 25 times the amount of money that I would like to live off of annually in retirement? If so, I know I can usually draw down about 4% or 5% annually without fearing running out of money.

2. Diversification of Accounts

Do I have that money invested across diversified accounts? You heard me—diversified accounts. I would make sure to have a pre-tax account, a post-tax account, a health savings account (if I had access to one), a taxable brokerage account, a high-yield savings account, and some form of long-term care. The name of the game in retirement is flexibility, and not just for the hips!

3. Timing Your Social Security

Have I figured out when to take my Social Security? This is one of the single biggest decisions I’m going to make. I would ask myself if I'm going to be working past 62, how long I think I might live, what the tax implications are, and if I have a spouse. The answers to those questions would help me decide the best timing for taking my Social Security benefits.

If any of this information is helpful, please like and follow, and I’ll keep trying to help you get one step closer to where you need to be.

Source