Retirement is coming. Whether you are just starting your career, or rounding the corner toward the end of it, everyone has to retire at some point in time. As retirement draws near, there are some things to think about and consider.
Let’s examine 10 of the top things to consider before retiring.
Time – Decide how you plan to spend your time after you retire. Look at the first six months to a year and get a plan together so you know how your funds will lay out during that period. Next, take a look long term and work with your financial planner to get some sort of plan based on your projected annual income.
Bills – With all major changes in your life, it is important to take a hard look at your bills and expenses. Get a realistic idea of how much money you will plan to spend monthly and don’t forget to factor in things like gifts, taxes, cars, and emergencies.
Health – Health care goes up and down each year, but once you retire, you will no longer have the cushion of an employer to help offset those costs. Decide what type of health insurance will be right for you and factor that into your monthly bills.
Mortgage – Now would be a good time to figure out if you would like to refinance your mortgage. Many people figure out that after they retire, they have more difficulties borrowing money or end up with much higher rates.
Savings – Figure out if that pile of money you have sitting for a rainy day will be enough. If not, look at ways to boost that amount to at least six months worth of expenses.
Income – You already looked at your savings, now see if your retirement income and projected income from Social Security will be enough to cover your bills from month to month. Make any adjustments if it will not cover those expenses.
Invest – The strategy you have been using for investments over the last thirty years will not be the same one you plan on using after you retire. Speak with a certified investment broker and figure out what the best plan for you is after you leave the work force.
Estate – Review your estate plan and if you haven’t already, update your will and trust. If you don’t have a will or trust, now would be the ideal time to get them. While these documents may seem morbid while you are alive, they will provide help in protecting your assets in the event something should happen to you. Having these documents will also help to delegate who receives what benefits when you pass on.
Insurance – Buy long term insurance. It is easier to purchase long term when you are still working than to try and figure it out once you retire.
Emotions – Retirement can be an extremely emotional time. If you are not excited about retirement, don’t worry. Many people become bored within a year after retiring and usually return to the workforce or to school. Keep your options open. Retirement is a process, a closing of one chapter and the opening of another. It is by no means the end. Take your time, explore your hobbies and passions, and see if there is something you want to enjoy for the rest of your life.