How Prepared are You?
Getting ready for retirement? Before you can cross that bridge, you’ll need to cross some important items off your to-do list. This checklist of ten crucial steps can help you visualize how far you’ve come and what planning you may still need to consider.
1. Retirement Budget
Understand what your income will be and how you can confidently spend the money you have saved for retirement. A budget serves different purposes throughout your lifetime, but there are several benefits of having a budget no matter what stage you are at.
2. Emergency Savings
Prepare for emergencies by saving at least three months of living expenses, and have that money easily available to you.
3. Tax Strategy
Have a sound tax strategy to guide you through the process of spending money from both taxable and tax-deferred accounts.
4. Lifestyle & Location
Consider where you’ll live, both short- and long-term. Will you downsize or move into a retirement community? Have a plan for funding a move and understand the timing involved.
5. 401k Strategy
Have a strategy for your 401(k) plan and determine the best time for you to access the money, based on your goals. Distributions from 401(k) plans and most other employer-sponsored retirement plans are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty. Generally, once you reach age 73, you must begin taking required minimum distributions.
6. Bucket List
Write down your personal goals for your retirement years. Explore your dreams, priorities and values.
7. Extended Care
Make arrangements in the event that you or a loved one encounters a health issue requiring full-time care.
8. Estate Strategy
Develop an estate approach that includes how you want your assets to be allocated, and who will handle your estate.
9. Health Insurance
Understand your options with Medicare and define a strategy for covering health care expenses in the long term. Healthcare expenses continue to rise and can be a major expense in your retirement years. Planning today can go a long way.
10. Social Security Strategy
When will you start receiving Social Security benefits? Your retirement could last 20 years or more. Strategizing when you will start receiving benefits can help you maximize your benefits and the amount you will receive.
Not Quite Ready?
If you’re not as prepared for retirement as you’d like to be, reach out. Together, we can fine-tune these strategies so you can finish your checklist and get started on that retirement bucket list.
