The light at the end of the tunnel is close for Donna. She’s worked hard for this moment, but it is a bit scary to pull the trigger and actually resign from her job. She is eligible for Social Security but hasn’t hit her full retirement age.
She thinks she has enough to retire, but is concerned she is missing something in her planning… a ‘trap door’ so to speak. Is there some aspect of planning she hasn’t thought about, or worse, just doesn’t know?
She has two 401(k) accounts, a Roth IRA, and a sizable savings account. She has questions:
- Do I have enough money to pay for healthcare if she retires before age 65?
- Which type of account should she take money from first?
- How should I invest the retirement funds to ensure I don’t run out of money?
- How much can I take each year to live off?
- When is the optimal time to claim my Social Security benefits?
Working with a professional has given her peace of mind as she:
- Created an income stream for her years between quitting her job prior to taking Medicare and Social Security benefits.
- Determined how to maximize her savings in her last working years.
- Reduced the potential taxes paid by determining when, and at what tax bracket, to withdraw from her tax-deferred accounts.
- Established a multi-decade financial plan accounting for Social Security, Medicare, and a potential long-term care event.
With her assets organized and a plan in place she feels confident she will retire on her own terms.
