Planning for a secure retirement should start as early as possible. One of the critical early choices that has a huge impact to that security happens when you get your first job and the opportunity to participate in a company sponsored retirement plan....
Timing Tax Payments in Retirement
For most of us, during our working years we give little thought to paying taxes due on income, other than knowing that a lot of our gross pay disappears because of this. In fact our employer has set up a system to withhold what we owe automatically, so we don’t have to make the payments ourselves. So what happens when a retiree leaves the workforce and the system that has been set up to pay taxes on any income received?...
Health Insurance – The Iceberg that can Sink Early Retirement Dreams
When someone says that their ideal retirement age is before the age of 65, and especially if it’s significantly before then, the first question I ask is, “What is your plan for health insurance?” You see, while it may be a lot of clients’ #1 goal to retire as soon as financially possible, what a lot of them don’t factor in is the impact of this one question....
Think 10% is an Appropriate Savings Rate? Not if you Want to Retire Before Age 70
In another tidbit from Fidelity’s Retirement Savings Assessment study, the firm took a look at the impact your retirement age has on the appropriate annual savings and withdrawal rates. See their findings below:
An early retirement would mean that you have less time to save and a longer retirement to fund. The average age for retirement is 62....