Approaching Retirement

  1. Determine your retirement goals: First, consider what you want your retirement to look like. Do you want to travel, downsize to a smaller home, or pursue a new hobby? Understanding your retirement goals will help you determine how much money you'll need to save and how to allocate your assets.

  2. Calculate your retirement expenses: Next, create a budget to determine how much money you'll need each month to cover your expenses in retirement. This will include fixed costs like housing and insurance, as well as variable expenses like travel and entertainment.

  3. Review your retirement savings: Take a close look at your retirement savings, including any 401(k) plans, individual retirement accounts (IRAs), and pension plans. Calculate how much money you have saved and whether it's on track to meet your retirement goals.

  4. Consider your Social Security options: Determine when you're eligible to receive Social Security benefits and how much you can expect to receive each month. Keep in mind that the age at which you claim benefits can affect the amount you receive.

  5. Create a retirement income plan: Based on your retirement goals, budget, and savings, develop a plan to generate income in retirement. This may include a combination of Social Security benefits, retirement account withdrawals, and other sources of income like rental property or a part-time job.

  6. Review your estate plan: Make sure your estate plan is up to date and reflects your current wishes. This includes creating a will, designating beneficiaries on your retirement accounts and insurance policies, and considering the use of trusts.

  7. Manage your debt: Pay off any high-interest debt, such as credit card balances, before retiring. This will help reduce your expenses and make it easier to manage your budget in retirement.

  8. Seek professional advice: Consider working with a financial planner or advisor to help you create a retirement plan that meets your needs and goals. They can provide personalized guidance and recommendations based on your specific situation.