| Most people dream about the day they will be able | | | | tax. By delaying the withdrawal of funds from these |
| to retire from their full-time job. The thought of | | | | accounts, they can continue to grow at a compound |
| being able to escape the daily grind is a dream that | | | | rate for more years, thus giving you a bigger |
| many of us share. However, before you take the | | | | retirement account on which to live. |
| plunge, there are some things, financial and otherwise, | | | | 4. Social Security. You may begin receiving Social |
| that you should consider. | | | | Security checks at age 62 1/2, but you will pay a |
| | | | penalty in that you future checks will be reduced by |
| 1. Your health. Just because you retire from a | | | | 25 to 35 percent. If you delay signing up for Social |
| full-time job doesn't mean that you necessarily need | | | | Security to the age of between 62 and 70, your |
| to retire from an active life. There are many studies | | | | benefit will increase by up to 7 to 8 percent per year. |
| that have found that staying active, whether it be | | | | 5. Health benefits. Those who retire before age 65, |
| with a part-time job or some type of volunteer | | | | the age at which you qualify for Medicare, must |
| activity, is crucial to keeping your mind and body in | | | | worry how to pay for expensive health insurance |
| good physical and mental condition. | | | | premiums until they do qualify for Medicare. The |
| 2. Your marriage. Even though couples promise to | | | | costs for health insurance will be extremely |
| stay together "for better or for worse", that doesn't | | | | expensive, even if you belong to a |
| mean that you want to spend 24 hours per day | | | | company-sponsored plan as you will probably be |
| together. There should be some planning and | | | | required to pick up the company's portion of that |
| negotiation that need to take place before either | | | | health premium in retirement. |
| husband or wife decides to retire. | | | | There are many other reasons why you should |
| 3. Taxes. Retirees can begin taking penalty-free | | | | consider whether or not to retire in the near future. |
| withdrawals from their 401(k) accounts at age 55 and | | | | We will explore some of those issues in a future |
| IRA withdrawals at age 59 1/2. However, these | | | | article. |
| withdrawals are still going to be subject to income | | | | |