October 29, 2012
Should You Put Retirement on Hold?
What is your retirement plan? Here are a few ways to determine how much you'll need and when you are on track to retire.
Many people dream of retiring while they're still young enough to pursue their favorite pastimes. But the recent recession, along with our poor savings habits, have forced many people to postpone retirement–or even go back to work. For a reality check, use one of the many retirement calculators available online–one of my favorites is Financial Engines. They let you estimate how much income you'll need at different retirement ages and how much you can accumulate under various savings and investment scenarios. Also consider where you want to retire. Some states are less costly, but you may not want to uproot your lives just to save taxes. From a tax perspective, remember that withdrawals from regular IRAs and 401(k) s are considered taxable income.
Bottom line: Start planning now, so you'll know realistically when you're able to retire.
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