This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

6 Tough Questions To Ask Before Retiring





While the biggest factor in deciding when to retire is whether you still need or want to work, there are many other variables to consider to ensure a comfortable and secure life after work.

"There is an upward trend in Americans working beyond age 60," says Gary Burtless, Ph.D, research associate at the Center for Retirement Research at Boston College. "And we've seen an increasing number of people staying in the workforce until age 72."

Burtless says that the incentives within the Social Security system and employer-matched 401(k) plan contributions can make working later in life more financially attractive.

In addition, American's confidence in their ability to retire comfortably is at an all time-low. According to the 2012 Retirement Confidence Survey by the Employee Benefit Research Institute (ERBI), 60 percent of workers report having less than $25,000 in savings or retirement assets.

Beyond the financial retirement considerations, Elizabeth F. Fideler, Ed.D., researcher and author of "Women Still at Work: Professionals Over Sixty and On the Job" and a forthcoming book on aging men in the workforce, found that a main reason would-be retirees choose to keep working beyond age 60 is that they enjoy the work and the feeling they are contributing and making a difference.

How can you know whether you're ready for retirement? Asking yourself these six questions may help. Any "no" answers may mean it's worth waiting a little longer to retire.

1. Is your credit in order?

"High interest debt on credit cards should be paid off," says John Ulzheimer, president of SmartCredit.com. "Otherwise it simply doesn't make sense to retire."

Ulzheimer notes that carrying debt with interest rates higher than your investment yields can lead to losing money every month.

"It's not uncommon to have some small vacation rental or remaining mortgage debt upon retirement," Ulzheimer says. "But this interest is tax-deductible and low-priced, with an end in sight in comparison to credit card debt."

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,122.01 +15.31 0.09%
S&P 500 2,000.12 +0.10 0.00%
NASDAQ 4,569.6210 -1.0160 -0.02%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs