You’ll know that you are prepared for retirement when you can answer yes to these four questions:  

Question 1) Do I have enough? 

This is the most obvious concern, but not everyone is 100 percent sure that their financial assets are going to last the rest of their lifetime. There is a way to get to a level-10 confidence with this question of “do I have enough?”

It starts with the creation of your perfect retirement plan. This perfect plan will take into account five keys and then make sure they’re working together.

  1. The income plan,
  2. the investment plan,
  3. the tax plan,
  4. the healthcare plan, and
  5. the legacy plan. 

It’s important to consider these five keys so that you can see the impact of your financial decisions on the future. Watch the video above to see an example of one plan with the expenses, assets, and withdrawal rates considered. 

Question 2) Have I had enough? 

You may have had a successful career, but now it might not provide you with that same drive. You may have other interests and things that you’d like to pursue instead.

Question 3) Do I have enough to do? 

It’s crucial that you continue to feel purpose and fulfillment in retirement. Those who retire without having a plan, an idea of what they’re going to do in retirement, or how they’re going to spend their time, end up having a harder time feeling fulfilled. For instance, there’s a common stage of retirement that is a depression-like stage.

Watch out for a future post on the five stages of retirement, which will address this issue of a lack of fulfillment and depression. Or, if you’d like more information now, click here for a guide called How To Find Your Purpose in Retirement

Question 4) Does my partner want me home all day? 

It is really important to make sure you’re on the same page with your spouse with this question. You’ve probably heard the quote that says: “I married you for better or for worse, but not for lunch.” So, as you’re having conversations around retirement, make sure to talk about how you might be spending your time in these years, or what you want to do together. 

If you need help with planning your retirement, reach out to me for a free planning session; I do a couple of those every week with people who are not clients. 

I want to thank Larry Swedroe for these questions and his writings, because they were the inspiration for this post. 

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