Midpack
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Almost everyone here knows all this, but it's almost always discussed piecemeal. Just thought it was a nice if very basic, stepwise outline to determine 'if one is ready.' There are still plenty of members, mostly new ones, who provide incomplete pieces of info and ask 'can I retire?' So FWIW see the slide show here: http://www.forbes.com/pictures/mjm45...eed-to-retire/, with more information in these areas:
How much money do you need to retire?
Add up your savings
Apply the 4% rule
Figure out Social Security
Figure out your pension
[Include any annuity payments]
Add it all together
Now figure out [exactly] what you spend [and project what you'll spend in retirement]
Subtract
Zero in on your fixed costs
Make more tough choices (e.g., working longer or spending less, delaying starting Social Security).
How much money do you need to retire?
Add up your savings
Apply the 4% rule
Figure out Social Security
Figure out your pension
[Include any annuity payments]
Add it all together
Now figure out [exactly] what you spend [and project what you'll spend in retirement]
Subtract
Figure out the difference between your income and your expenses. Make sure you allow for taxes. If you’re positive (usually not the case), congratulations!
Zero in on your fixed costs
Make more tough choices (e.g., working longer or spending less, delaying starting Social Security).
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