There are several key areas of your finances to review as you get nearer to retirement. The more research and planning you do before the day comes, the better prepared you will likely be when that day arrives. Use this checklist as a general guide to help you prepare for retirement.
• Lower your costs on credit card, consumer and mortgage debt.
• Build a three- to six-month emergency fund.
• Meet with your financial advisor 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.
Prepare for the emotional impact of retirement. Talk to your spouse, family and friends about how you want to spend this time in your life. Next set reasonable goals for yourself (e.g. travel, hobbies and exercise) so can stay engaged and active. You’ll want to consider where you’ll live. Will you relocate, stay put or downsize? Review your financial situation since that will have an impact on your decision. Consider working part-time to generate additional income, if you need it, and but also to stay active.
Additional retirement planning tasks
• Make sure your estate plan is current. You’ll want a will, living will and healthcare power of attorney in place. Look into long-term care insurance before you think you’ll need it. You may be eligible for better rates. Review Medicare supplement insurance options. Bee sure to get an annual physical examination. This may help you qualify for lower health insurance premiums.
If you are not currently working with a financial adviser now is the time to speak with someone. A professional can help you analyze your financial situation and investment allocations. This review can help determine if you have the right mix of investments to help you achieve your goals.
Article provided by Local Government Federal Credit Union.
The advice given is for informational purposes only. Contact a financial advisor for additional guidance.