New York, NY (PRWEB) August 01, 2013
In response to a July 12th Fox Business article titled “6 Tough Questions to Ask before Retiring”, Grey Wing Financial discussed important questions to ask before beginning the process of retirement, encouraging readers to look at more than just financial needs, but also the desired quality of retired life. Additionally, Naomi Mannino tells her readers to consider whether it is necessary to retire, as putting off retirement until a later date may secure a higher quality of living for retirees.
Naomi Mannino begins her list with a small introduction to the process of retirement planning, citing both a trend toward retiring later (70 rather than 65), and the failed confidence of most Americans regarding retirement (60% of workers have only $25,000 or less saved for retirement). She quickly follows her exposition with the first question to determine whether retirement is wise: Is all credit in order? Mannino points out the foolishness of retiring with a large amount of credit card debt, as credit debt charges large interest fees and places a significant drain on retirement funds. Rather than retire earlier with debt, Mannino recommends her readers obliterate debt first, and then retire. The second question asks whether the potential retiree has maxed out retirement benefits. This includes social security as social security increases up to age 70. If retirement benefits have not been maxed out, Mannino argues an extra five years is well worth the wait. Her third question asks readers to examine their health. In good health? Exercising and eating right can keep one vibrant. In poor health? If poor health is forcing retirement, Mannino does not object. If no health concerns are present however, she encourages readers to hold off, as health costs may skyrocket without the assistance of retirement-age health assistance. The fourth question involves current work situations. Is work a choice, or a necessity? If it is a necessity, it is certainly not time to retire. If it is a choice, Mannino says, it may be time to either retire, or seek out a position that is more in the realm of one’s passion. The fifth question discusses income needs and minimizing them. Are needs as minimal as possible? Have cars been paid off, or one’s home? As much as possible, minimize all drains on one’s income before retirement to avoid having extensive expenses after retirement. Finally, Mannino challenges readers to ask themselves, “Do you have enough cash?” Mannino suggests having two years of liquid income readily available before retiring. This only serves as a base figure; Mannino certainly encourages readers to save more. Mannino is quick to suggest that, if the answer to any of her questions is no, one should put off retirement until the answer is yes.
GreyWingFinancial.com responded to Mannino’s six questions to ask oneself before retiring. Her questions, though simplistic, are well thought out and are certainly a good jumping-off point when preparing for retirement. However, taking these questions into greater depth is strongly advised; rather than simply paying off credit card debt, for instance, strive to pay off all debt—with the possible exception of one’s mortgage. Additionally, if Social Security pays out higher up to age seventy, it is strongly advisable to work until that age, if at all possible. Though five years may seem a long time, maximizing retirement benefits will contribute to a less stressful and more enjoyable retirement. Though Mannino encourages readers who are working by choice to either retire or find a smaller job and continue to save, Grey Wing Financial’s head writer suggests this instead: “As discussed above, social security benefits may be maxed out at age 70. Regardless of financial situation, or current comfort, it is wise to work additional years, if possible, to max out retirement benefits, save as much as possible, and ensure all financial plans are on track.” In short, being capable of retirement is not necessarily tantamount to being ready for retirement. Compose a detailed retirement income plan, including all expenses: iIs a motor home an after-retirement necessity? Make sure funds are set aside for the purchase of one. Rather than simply preparing a lump sum, construct a plan based on projected wants and needs.
Naomi Mannino is a freelance writer, working in all genres, including lifestyle and personal finance. She has worked as a writer for many publications, including constructing biographies for individuals and company websites, as well as contributing regularly to Fox Business pages.
Following Naomi Mannino’s article listing 6 important questions to ask oneself before beginning the retirement process, Grey Wing Financial responded. Though Mannino’s questions are well thought out and should certainly be asked before retirement, contrary to Mannino’s suggestion, answering positively to all six does not necessarily guarantee preparation for retirement. Though answering positively to her questions may provide an adequate retirement, for those interested in living a more luxurious lifestyle upon retiring further questioning is required. A financial situation is not necessarily healthy for retirement simply because it lacks credit card debt and extraneous expenses. Individuals must prepare for the reality of inflation, the possibility of emergencies, and changes in economic climate. Therefore it is also necessary, after asking oneself Mannino’s questions, to consult with a financial planner or determine alone whether savings and investments are mature enough to provide a robust, healthy retirement.
About Grey Wing Financial:
GreyWingFinancial.com is an online resource for retirees, providing news and information regarding retirement finances and lifestyles.