Are You Ready to Retire in Regards to Finances?
Have you started thinking about closing your medical practice and retiring? If so, it’s important to take a step back and review your finances. You need to ensure that you’re in the right place financially to start the process of closing your practice and retiring. Here are a few tips to help you make sure you are in the right place financially to retire.
Know What Your Income Requirements Are
The first step is to consider what income you will need when you retire. Do you have car payments, rent, a mortgage or other loans that you are responsible for? How much are you expecting to pay for health insurance, entertainment, and travel? What about basic expenses like utilities and groceries? It is important to take all of these into account when creating a budget. You might also want to track your actual expenses for a few months to get a more realistic picture of your monthly spending.
Consider Social Security Benefits & Other Income
In addition to your retirement savings, you are also entitled to Social Security benefits. These projects change, but you can go right to the Social Security website to calculate an estimate of what you will be receiving. You should also consider how you spouse’s claims impact the overall budget picture.
In addition to Social Security, you should also compile a list of any other income sources. If you have a pension, rental income, a side-business or part-time job, you can also include these in your estimates as well.
Analyze Your Retirement Savings & Create Withdrawal Strategy
You will also want to look at how much you can withdraw from your retirement plans. 4% is usually a safe number for a diversified portfolio. Meet with your financial advisor and determine an appropriate withdrawal strategy for your situation.
Check If Your Portfolio Is Diversified
As you approach retirement you should also check to make sure that your portfolio is diversified. You will want to look into a variety of index-funds or speak with your financial advisor to ensure you are set up right for retirement.
Investigate Long Term Care
Something else to keep in mind is long term care. Your entire savings can be wiped out by long term care costs because Medicare and other health insurance policies do not cover it. Long term care insurance is something to consider in order to protect your assets.
If You Are Ready to Retire and Close Your Practice, Contact My Retired Doctor Today!
If you are financially—and mentally—ready to retire and close your medical practice, call My Retired Doctor today! We offer quality document management services to retiring physicians, including document shredding, scanning, and storage. We can also serve as your release of information provider to ensure that your old patients have access to the records they need after you close up shop. To get started today, call us at 877-328-2343 or visit us on the web at My Retired Doctor. We’ll be happy to actively work with you towards a stress-free retirement!