Articles - Archived Expert Advice

Prepare for Retirement

I would like to retire in three years. What steps should I take to make sure my finances are in good shape?

There are several key areas one should review. The more research and planning you do before retiring, the better prepared you should be when that day arrives. Use this checklist as a general guide to help you prepare for retirement:

Financial goals

• Lower your costs on credit card, consumer and mortgage debt.
• Build a three- to six-month emergency fund.
• Meet with your financial adviser annually.
• Track your monthly spending patterns.
• Practice living on your retirement budget now.
• Review your pension and Social Security income options.
• Evaluate and adjust your investment portfolio allocations.
• Consider the placement of your 401(k), 403(b), 457 or IRA.

Lifestyle decisions

• Decide where you will live in retirement (relocating or downsizing).
• Consider working part-time to generate additional income and stay active.
• Set some goals for yourself (travel, hobbies and exercise).
• Prepare for the emotional impact of retirement (talk to spouse, family and friends).

Additional Tasks

• Make sure your estate plan is current (will, living will and healthcare power of attorney).
• Look into long-term care insurance.
• Review Medicare supplement insurance options.
• Get an annual physical examination.

If you are not currently working with a financial adviser, or just want a second opinion, call us at 877.367.5428 or email financialplanner@lgfcu.org. We will analyze your financial situation and investment allocations to help determine if you have the right mix of investments to help you achieve your goals.