Retirement Q&A

If you're a doctor who is thinking, or dreaming, about retirement, be prepared to effectively answer the following questions:

At what age do you plan to retire?

• What minimum level of annual income is needed to adequately cover recurring expenses?

What optimum level of annual income is needed to maintain your current standard of living?

• What anticipated special circumstances or events will require extraordinary expenditures (eg, education, weddings, special purchases, gifts)?

Have the effects of inflation on retirement expenses been considered in preparing retirement budgets and projections?

• Are you currently saving at a rate sufficient to provide for an adequate retirement income?

If you are contemplating early retirement, is the projected level of capital accumulation and pension benefits sufficient to fund an early retirement?

• Have you begun to reposition investments in favor of lower risks and/or higher income?

Have you reevaluated all areas of insurance coverage in light of impending retirement?

• Have you made a final decision as to retirement housing requirements, including contingency plans in the event of the death of a spouse or prolonged illness?

If you anticipate needing nursing home care for yourself or your spouse, how do you plan to meet the expense for such care?

• Have you decided whether to take a lump-sum withdrawal or periodic withdrawal payments from a qualified retirement plan?

Have you determined the lifestyle desired in retirement, including activities and hobbies that will ensure an active retirement?

• Do you have a will, durable power of attorney, durable power of attorney for health care, and living will?

Source: Wisconsin Education Association Council (www.weac.org).