Are you really ready to retire? You may need more than you think

If you think you are ready to retire, make sure you have done the math...

According to a recent article in Medical Economics, there are many "risks" or "factors" that need to be considered carefully...

here is a list of them to double check:

1. Inflation. Inflation is at 3.8% but could go up to 5%. So, for example, if you plan to retire 10 years from now, $2 million dollars would only be worth 1.35 million or better said, the lifestyle that you have anticipated costing $120,000 would really cost $177, 000.

2. Taxes. The $120,000 you are planning to withdraw annually from tax deferred account will resul in $23,000 tax bill in todays tax scenario.

3. Timing. This is potentially the most devastating. If your retirement in in funds and stocks and the market drops when you retire, then your nest egg will drop too, for instances if the market loses 20% of it's value, your $2 million will drop to $1.6 million.

Here are some sites you can visit for more info:
http://personal.fidelity.com/retirement/retirement_frame.shtml.cvsr

http://www.aarp.org



3. Timing.