• Look at your bank statement and establish what you spend every month. This will define what amount of money you need to live on.

• After you have the amount you need to live on every month, look at your assets to see if they will create this amount. (These assets are NOT bank accounts or emergency money).

For example, if you have $100,000 in your company savings, that would create $500/m in taxable income for you, using a 6% return on your assets.

• Add any income stream from other sources such as your social security and/or pension.

• The key to a comfortable retirement is knowing what amount of money you need, and figuring out if you have enough to be comfortable.

• Many “retirees” leave their current job, and choose to work part time elsewhere until their social security kicks in.

• Beware that health insurance is quite expensive, and sometimes it is best to stay at a workplace to keep your benefits. There may be requirements (such as years of service) to keep your health insurance during retirement after you have left a company.

• Establish an emergency fund that is 6-12 months of what you spend every month. This will make your life easier when you retire and adjust to a new budget and lifestyle.

• If you plan on moving, rent a place for a few months BEFORE you retire. This will give you a great idea of the cost of living and other important lifestyle changes that may occur. This is especially important if you are out of state.

• If you choose to retire early, (before 59 1/2), there is a way to give yourself an income from your assets without incurring a 10% penalty. This is our firm’s EXPERTISE! We have had several situations in which the IRS audited our clients on this 72(t) rule, and we came through with flying colors!