Ready, Set, Retire!

How many of us are longing for the day when we can finally retire? I spoke with a gentleman today who retired from the Washington D.C. Police Department and moved into the Spotsylvania area where he picked up real estate for a few years and is now ‘really’ retired. More and more retirees are picking up second jobs to help make ends meet during the golden years. I am sure that you know someone who did the same thing.

I started thinking about what retirement really means. According to one dictionary, retirement is defined as: “Withdrawal from one’s occupation, business, or office”. That seems like a pretty standard definition of what most of us think about retirement. The big question for most people is “once I retire, will I have enough to live on.” The answer to that question has a lot to do with your financial needs once you enter retirement. How much debt do you have? Is your house paid for or do you still have a mortgage? What about long-term care?

All of these questions need to be addressed before you decide to tell your boss what he or she can do with ‘this job’. I found this article that deals with some commonly asked questions regarding 401(k) plans. Although I do not offer advice on what you should do with your retirement earnings, nor do I necessarily agree with all of the answers offered in this article, I think the list of questions is excellent and something that we should all be thinking about.