Take steps to prepare for retirement

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.

Financial goals
• 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.

Lifestyle decisions
• Decide where you will live in retirement. Will you relocate, stay put or downsize?
• Consider working part-time to generate additional income and stay active.
• Set some goals for yourself (e.g. travel, hobbies and exercise).
• Prepare for the emotional impact of retirement. Talk to your spouse, family and friends.

Additional tasks
• Make sure your estate plan is current. You’ll want will, living will and healthcare power of attorney in place.
• 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 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.

The advice given is for informational purposes only. Contact a financial advisor for additional guidance.

Article provided by Local Government Federal Credit Union.