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Older Americans should perform a 'status check' before deciding to retire early 2010-06-09 Retiring early sounds great in theory, but older Americans should weigh their current financial situation and retirement income before finalizing their decision, according to CNN Money. Pre-retirees should first look at their personal savings and use a standard 4 percent withdrawal rate to determine their monthly and annual income, the money magazine reports. Individuals should keep in mind that they may begin factoring in Social Security benefits at age 62. Investors should also examine their current investment strategies. Investing too aggressively during retirement years may put an individual's nest egg in jeopardy, therefore they may want to diversify their portfolios to protect their assets and maximize gains, CNN Money reports Older adults should also make any other large decisions regarding downsizing, eliminating debt, or paying off their mortgage before they enter retirement, the magazine suggests. There is no universal financial standard that applies to older adults. Americans may better prepare themselves for retirement by building their financial goals around the standard of living they hope to achieve during their golden years. Meeting with a financial advisor may also help those planning to retire early decide if it is financially feasible.  |
