When I set up my 401k at work, I invested most of my money in a Target Date Fund, which is the year that you’ll supposedly retire. It’s about 45-50 years down the line from the year you started working. Personally, I think a good time to retire is when you believe you have enough money to last the rest of your lifetime!
Target date funds can be a great choice for your 401(k) account. Many have low fees, automatic rebalancing, and move to a more conservative portfolio mix as they near the retirement target date. Now is a great time to check your retirement payroll savings rate, and maybe bump it up 1-2% to take advantage of compound growth. Your target should be to save at least 15% of your salary for retirement.
I also like the idea of "mini retirements" where you take a few months to a year off after six or seven years of working and pursue your passion projects and travel. It gives you time to re-calibrate and balance, set goals for the future. You come back re-energized and ready to take on whatever life gives you!
I really like what Sylvia says above, if that can work for you in your line of work. I personally think a good time to retire is when you feel you can support yourself for the long term, but that is a difficult one to determine. I believe in scaling down and reducing your footprint and needs is one of the best ways to get there faster. Get to that true debt free state. If you want to keep the big house for those 3 to 5 times a year visits from the kids, then waiting for the visits in between is going to cost you.
I really like @Sylvia's idea of "mini retirements" as well!! If it works for you, then go for it.
@Angie, you also bring up a great point about feeling ready to support yourself long term. I'm not too sure what that looks like for me right now.
I plan to work at my job until I am at least 65…after that, I plan to work until I don't feel up to it any more….I like my work and I believe that keeping busy ( maybe not full time later) is really good for a person…..
A family member had to complete 10 years work for the state in order to earn a small pension. I insisted this happen. If however she went on 15 years, she was told it would be free health insurance… I knew she was under stress so I did not push for the 15. She got in the 10 years and the 1st possible day she could retire, she did. Nowadays that small extra check makes a difference for her. BTW- if she stuck it out 5 more years no benefit.. in that 3 years later the 15 years for free health insurace was discontinued.
A family member had to complete 10 years work for the state in order to earn a small pension………..
many states are changing retirement and new hires do not receive pension…. it works like a 401 but is still called a 403
I plan to work at my job until I am at least 65…after that, I plan to work until I don't feel up to it any more….I like my work and I believe that keeping busy ( maybe not full time later) is really good for a person…..
I totally agree, Lora! Sounds like you're quite the hard worker.
I am 49 years old. What would be the best age for early retirement?
@Kevin, while there are many articles that claim your mid-60s is a good time to retire, what matters most is how financially prepared you are to handle retirement. What would you consider "early"?
I think early is anything other than 62 which is the youngest for taking out SS…..I also think that money is just part of the equation…there is also temperament, liking work and being an active money maker by choice. I feel like its more complicated as I get older and closer to it
@Lora L.
Read my recent topic, you'll find your answer there.
sounds fine but I didn't have a question….just a response
I am glad you to see you have a master plan! :)
I plan to retire before my retirement age which I have already earned enough work credits
i really think 65
I am currently in the phase of 'scared sh#tless" about retirement. I will be 63 this year and am bouncing back and forth with the 1) do I retire early in case I get sick later or 2) do I wait till my full retirement of 67 and 4 months. I work in the medical field and see sick people younger than me all the time. They are not able to enjoy their retirement. I don't want to be in that situation, BUT I also know I am not financially stable right now. I will have no pension and it is difficult to live on just social security. Unfortunately during hard financial times I had to dip quite heavily into my 401 plan. Life always hits us with curve balls. I am glad that I found this site to help me with understanding my prior savings mistakes and will move forward using everything I am learning here. Hoping to retire at 65 when I can qualify for Medicare, but will definitely still work part time to stay busy. Or maybe volunteer with the elderly.
A good time to retire is when you have all your items in order (Not just the money aspect but also where do you want to retire to, have you paid off all debts, do you have an emergency fund, if you are younger than 65 what are your health care insurance options). There is not a one size fit all retirement.
65 or 10 mil
It really depends on when you can afford it.
I'm going to wait till 68 to retire at least that's my plan for now
I think it's different for everybody but remember you also have to wait untill a certain age to get the max social security benefits.
bread
I think it depends on how much you have saved for retirement.
I'm getting really tired of my job. I'm 62 and could retire now, but I have debt and medical insurance to think of. Im probably too old to get something else with benefits but maybe it's time to open my eyes.
