Even for the best of savers, the first year of retirement is a real shocker! If you have a pension, they may not withhold state taxes - this happened to me, which makes the next tax filing a real pain. Whatever new kinds of income streams you're going to generate, there is a very uncomfortable adjustment period during which it's hard to anticipate exactly when money will come in, or how much. If you sell you home and move to another state like I did, there are more tax headaches ahead, and moving costs can be far more than estimated - my estimate was $4000, my invoice on delivery was $10,500! Do the best you can to expect to be financially shocked, and have some viable back-up plans for these kinds of contingencies.
Even for the best of savers, the first year of retirement is a real shocker! If you have a pension, they may not withhold state taxes - this happened to me, which makes the next tax filing a real pain. Whatever new kinds of income streams you're going to generate, there is a very uncomfortable adjustment period during which it's hard to anticipate exactly when money will come in, or how much. If you sell you home and move to another state like I did, there are more tax headaches ahead, and moving costs can be far more than estimated - my estimate was $4000, my invoice on delivery was $10,500! Do the best you can to expect to be financially shocked, and have some viable back-up plans for these kinds of contingencies.