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www.HowCanIRetire.net
3 Subjects To Consider Before Your Earlier Retirement Kicks In
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Let's choose an age of 55 years old for this example.
Health Care
 Well so far that should be something to worry about a bit less now that you have to have it. It will cost less than before depending on how much you earn.
Massachusetts has had a health care law in effect for a few years now, and it works very well for those who have a smaller income than the wealthy. If you are above the Massachusetts limit (currently there is a $45,396 a year for a 2 person family income in the 300% Federal Poverty Guidelines), you have a greater income, and you can more easily afford to pay for it.
For the rest of the country, COBRA can possibly get into play between your Medicare kicking in at age 65.
You can also possibly get onto a family plan with your wife's company if she still would be working or your husbands company if he will still works.
Don't forget about health care coverage because it is very important.
You might need to move to Canada. Haha! You could get a part time job with health coverage to close the gap if need be. Remember though we do have Obama care kicking in so you will have to file a claim on your taxes showing your coverage soon.
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Money!
 We all think about that for sure. If you have 401K's or IRA's, you can access the money, but with a penalty for doing so. It might not be worth it or it might, you'd have to choose.
Your pension plan will not necessarily be the same as others and yours might not pay out early enough for you at 55 years old.
Social Security can kick in at 62, so you still have 7 years to get to that amount of money and even then it is a quite a bit smaller than at 66 or 67 years old.
Add the amounts of money that you will have every year until the larger sums can kick in and see if you can live on that amount.
If so, go for it if you like.
Retirement money accounts
You most likely will need to roll your 401k money over into an IRA as soon as you leave your job for the security of it.
Fidelity, Vanguard, possibly Trade King and a few other companies offer low cost mutual fund fees for an IRA.
The expenses of a fund are charged to the customer - you.
That means that the annual expense ratio, management fees, and all of the costs of the fund's business transactions are deducted from the fund's financial vitality.
It also means that you get less from an expensive to operate fund, than a cheaper to operate fund, most often.
Early on you will find that stocks can be good for long term growth.
A Roth IRA is a good investment if you are starting early enough it can pay off well. |
