Are You Financially Ready to Retire and Close Your Medical Practice?
Retiring is an extremely exciting life event that takes careful planning and consideration. You don’t want to blindly throw yourself into retirement for fear of running out of assets. Here are a few questions to ask yourself when it comes to the financial aspect of retirement:
What Do You Need to Live Off?
One of the most important things to consider when contemplating retirement, is what your post-retirement budget will be. You will need to compile all of your expenses, including housing, food, healthcare, car payments, utilities, travel, entertainment and more. Before retiring, it’s important to test your budget out for at least six months. Were you able to stay under that limit? If not, you might need to rethink your retirement plan and make sure you still have enough that you don’t outlive your retirement savings.
What are Your Income Sources?
Consider all of your income streams when planning for retirement. Will you be receiving a pension? When are you taking social security? Is there any rental income from real estate? These are all important to consider when preparing for your impending retirement. a financial planner will be able to help draft a solid strategy for you.
What Can You Safely Draw From Retirement Savings?
Having a sound withdrawal strategy is essential for retirement. Most planners recommend taking no more than 4% annually from your total retirement savings. That does include all pensions, IRAs, retirement savings, and other investment accounts. Sum your total income and savings up and then multiply it by 4%. Is that number higher than your estimated budget? If it’s not, you have more saving to do.
Have You Considered Health Care?
If you’re 65, you will be able to utilize Medicare. That can significantly decrease your overall spending, but there are still costs to keep in mind. You will need to pay premiums. You also might want to look into long term care insurance. This is something Medicare does not cover, but can completely wipe out your nest egg if required. Some states offer long term care partnership programs that you can look into. If you’re retiring before 65, you will need to weigh your healthcare options and determine the best choice for you.
Datafied Offers Help Closing Your Medical Practice and Retiring
After reviewing your finances, are you ready to close your medical practice and retire? If so, Datafied can help! We offer a variety of services to retiring physicians. From document scanning, storage and shredding to becoming a Release of Information Provider, we do it all. You’ve worked hard enough to reach this pinnacle, so don’t let document management weigh you down in retirement. Call us today at 800-765-7510 to get started!
