Personal Finance

Approaching Retirement: What You Should Be Doing Now

You’ve worked hard to save toward your retirement goal, and as it gets closer, now is the time to make some important decisions and nail down the specifics. Here are some things to consider and questions to ask yourself to ensure a smooth transition to retirement.

Consider your goals, wishes, and priorities
•What type of lifestyle do you plan on living?
•What aspirations do you have for life in retirement?
•Do you plan to work during your retirement?
•Where will you be living? (i.e., your current residence, downsizing, relocating)

The family conversation
•If you have a partner or spouse, are you both on the same
page as far needs, goals, and expectations?
•Will you have any dependents that will count on you
for personal or financial support?
•Do you have any children or grandchildren who will
have education expenses you would like to help fund during retirement?

Know your numbers
•Should you take Social Security immediately upon eligibility or delay?
•What will your Social Security income be if you take it upon eligibility versus delaying?
•Have you taken stock of all of your assets and accounted for any debts?
•Begin solidifying your retirement income plan:
where exactly will your income be generated from?
Which assets you will begin drawing down from and when?
•Will you be eligible for Medicare coverage? Will you need supplemental medical coverage?
•Consider the tax implications of your retirement residence (i.e., state Social Security, income, and sales tax rates)

Be smart with saving and investing
•Are you eligible for retirement savings account catch-up contributions? If so, amp up your retirement account contributions.
•Have you considered insurance options to help protect your retirement income and savings from potential health and long-term care costs?
•Is your portfolio well diversified and aligned with your retirement goals?
•Are you making an effort to limit new debt and pay down existing debt?

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