How Do I Know If I’m Ready to Retire?
You’re generally ready to retire when your income sources are stable, your tax strategy is efficient, your healthcare plan is solid, and your desired lifestyle fits comfortably within your financial capacity. Most people in Brea, CA and throughout Orange County find clarity by reviewing their retirement income streams, Social Security timing, long-term healthcare needs, and withdrawal strategies. A fiduciary advisor—such as the team at Montage Wealth Advisors—can help ensure every piece works together. Here’s what to look for as you evaluate your own readiness.
Understanding Your Retirement Income Plan
Your first step is confirming that you have enough reliable income to support your lifestyle. This includes Social Security, pensions, rental income, investment withdrawals, or other predictable sources. A strong retirement income plan ensures that your essential expenses—housing, food, utilities, transportation, and healthcare—are fully covered without relying on volatile portfolio returns.
At Montage Wealth Advisors in Brea, we typically help Orange County pre-retirees evaluate whether their income streams are consistent, sustainable, and properly diversified. If you haven’t already run the numbers, this is the perfect time to take a careful look or connect with a fiduciary advisor.
Timing Your Social Security Benefits
When you claim Social Security can significantly impact your long-term income. Claiming early increases cash flow sooner but permanently reduces your benefit. Waiting until full retirement age—or even delaying to age 70—can noticeably boost your lifetime income, especially if you expect a longer retirement horizon.
A well-structured plan aligns Social Security timing with the rest of your retirement income strategy, reducing tax drag and improving cash flow consistency.
Planning for Healthcare Costs in California
Healthcare is one of the largest expenses retirees face, particularly in California where medical costs tend to run above the national average. If you retire before age 65, you’ll need a plan to bridge the gap until Medicare begins. After 65, consider whether you’ll use Medicare Advantage, Medigap, or traditional Medicare paired with supplemental coverage.
The key question: Do you have a reliable, long-term strategy to pay for insurance premiums, deductibles, prescriptions, and unexpected medical events? A well-prepared retirement plan should account for all of these—even if you're healthy today.
Using Tax-Efficient Withdrawal Strategies
Your withdrawal strategy can be just as important as your savings. Tax-efficient planning helps extend the life of your portfolio by determining the most strategic order for drawing from accounts such as Roth IRAs, traditional IRAs, 401(k)s, and taxable investments.
This becomes even more essential if you’re a high earner in Brea or in the broader Orange County area. A fiduciary advisor can help you evaluate when to harvest capital gains, how to manage required minimum distributions (RMDs), and whether Roth conversions make sense as part of your long-term strategy.
Are You Emotionally and Lifestyle-Ready?
Retirement readiness isn't just financial. Ask yourself whether you’re ready for the lifestyle shift—more time, more flexibility, and new routines. Many people underestimate how important structure and purpose are during retirement, so it’s wise to think through how you want to spend your time, maintain relationships, and stay active mentally and physically.
Fiduciary Guidance for Orange County Pre-Retirees
Retirement planning is complex, and it’s normal to feel unsure about when you’re truly ready. That’s why many people turn to fiduciary firms like Montage Wealth Advisors for guidance that is always in their best interest. Whether you're evaluating your savings, Social Security timing, health coverage, or tax strategy, objective and personalized advice can give you confidence in your next steps.
Explore more about how we support individuals preparing for retirement:
Ready to See If You’re Prepared?
If you’d like help assessing your readiness, the team at Montage Wealth Advisors in Brea, CA is here to assist. Schedule a retirement readiness review and gain clarity, confidence, and a plan tailored to your goals.