Making the decision to retire is something that many individuals grapple with. Some waiver on whether they are actually in a financial position that ensures a happy, healthy life after they close up their medical practice. There are several rules of thumb and things to consider before retirement, including the three tips below.
- 80% Income Replacement Rate
- No More Mortgage
- Assess Your Retirement Lifestyle
As a rule of thumb, you should be able to replace 80% of your pre-retirement income before retiring. This is generally impossible to do with Social Security alone, so this different will have to come from retirement plans, savings, or even a pension. That means you need to have enough assets heading into retirement to account for this difference.
One factor that can greatly improve your financial standing in retirement is having your home paid off. Mortgages can run thousands of dollars every month, and if you do not have a strong income to replace that you might find yourself struggling for money in retirement. While it’s not a hard fast rule that you should only retire if your house is paid off, it definitely frees up more of your assets.
One of the most important things when you are looking at whether your finances are in order to retire, is to assess what type of life you would like to live in retirement. If you are looking to keep your current lifestyle, you will need to save more for retirement. On the other hand, if you are willing to decrease your spending, you can find yourself in a much better position financially.
So, What Now?
If you have gotten your finances in order and are ready to retire, there are many more steps that need to be taken before you can officially entire retirement. You’ll have to inform your patients, employees and vendors that you are closing your practice. Another thing to consider, is selling your property if you own it, and even working on a way to sell or donate the chairs, machines and other equipment in it. Additionally, you’ll also have to worry about how the documents in your office are managed after you are gone.
My Retired Doctor Can Help With That!
It might seem overwhelming, but My Retired Doctor is here to help with the management of your medical records and documents. You’ve worked your entire life to get yourself in a financial situation to retire, so the rest should be easy! At My Retired Doctor, we can assist with shredding, storing and scanning your old medical records. All of our services are scalable and we maintain 100% HIPAA compliance through all of our processes. After you’ve retired, we can also serve as your Release of Information provider. If you’re serious about retiring, give us a call at 877-328-2343 and we can get you on the right path!