Considerations For Your Last Few Working Years.
Shore up your financial details before taking the plunge into retirement.
As you're getting into the pre-retirement stage of life and you start to imagine a life beyond your working years, be sure to take some time to look very closely at your retirement picture and make sure all the details are in order. You want to retire right the first time - trust me, nothing is more devastating than having to go back to work because you made a miscalculation.
Today I want to outline three main areas to keep a tight watch on as you work your way closer to retiring.
Healthcare - Medical expenses are one of the biggest concerns for retirees. If you're retiring prior to becoming eligible for Medicare at age 65, make sure you know where your health insurance will come from. This can mean buying your policy on the open market, which can be expensive, and come as a shock to your budget if you're used to your employer paying all or most of your insurance premiums. Make sure your income plan factors this in.
Budget - When you retire and suddenly every day is "Saturday," how will this affect your current budget? Take the time to think about what you actually want and plan do with your increased free time, and what that will realistically cost. For some, this means they will spend more than they currently do, and some people will spend less. There is no right or wrong answer, just be sure your income plan matches up.
Income - Up until the point when you retire, you have probably been accustomed to a regular paycheck deposited into your account twice a month, and it can be scary to walk away from that security. Prior to retirement, you will need to determine when you plan to start taking your Social Security benefits, and how you will turn your nest egg into a paycheck that will cover your needs - and last for the rest of your lifetime. Unfortunately, there is no one-size-fits-all answer to this, and your income plan/ongoing investment strategy will have to be tailored to you and your lifestyle. Make sure you have a plan and are comfortable with it prior to putting in your two weeks' notice.
If you need some guidance with these and any other areas of your retirement and finances, please, give us a call. Our team will create a plan tailored to you and your unique situation. Know someone who could use our help? We're never too busy for your referrals!