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How to Know if You Can Afford Retirement

Are you ready for retirement and can you afford it?

In this week's episode of Ask The Broker, I'm talking about the important items to consider when determining if now is the right time for retirement and if you can afford it.

Can you afford to retire? If you recall, in our opening video, I said I was gonna be asking you some tough questions, give you some things to think about. Last week, we talked about SALT and the changes to the state and local income tax deductions. But I thought this would make a good follow-on video to talk about an important topic. How do you afford to retire? And just because the boss says it's time to go, does that mean you're ready?

True, some folks our age have saved well, they've planned ahead. Some have worked for the same company, or are retired from the military or the federal government, and they're in good shape. But the answer could truly depend on what retirement means to you. What is it? What's that vision that you think of when you see yourself asretired?

I always say I'm not retirement material. That's a good thing, but truthfully, if I had been the winner of one of those big lotteries last week, and I could afford to do anything I want, would I be here right now? I don't know. I know several people my age though, even though they have retired once, some even twice, they have begun to work again, and work hard. Sometimes it's simply to remain engaged, to keep that mind working, to keep meeting new people and having new experiences. Other times, it's frankly to be able to afford the things we'd all like to do.

I have a couple of agents that are retired from good careers. I asked one, "Why do you continue to work so hard?" And he said, "Remember that month I spent in France last year? That's why." Another one of my agents took her entire family, and I mean children, grandchildren, spouses, boyfriends, on a big cruise. That's expensive, and not everyone's retirement income will cover such a luxury. So working for some, it's not about the dollars. To others, it is. And these are not questions I can answer for you. You can certainly consult with your financial advisor, your accountant, but they're lifestyle questions and they truly are ones you're gonna have to give a lot of thought to.

To those people that call and tell us they've just retired, they'd like to buy a new retirement home with all the bells and whistles, but they're gonna put down 10 or 20%, we often want to ask this question: Can you afford to retire?

So think about it. We'd certainly do everything we can to help you find a retirement home that you can afford and enjoy the rest of your life, but think about that question.

When you are ready to retire and make your move to Delaware, the Active Adults Realty team is here to help. For the tools and resources to help you find the right Delaware community, download our Free Buyers Guide HERE.

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