It’s time to dive into planning everything about your retirement from your lifestyle to your finances. Your to-do list may feel overwhelming! Luckily, we’ve put together this checklist of 10 action items you can take starting today as you look to set yourself up for success.
What do you want your retirement to look like? Thinking through where you want to live, and how you want to spend your time, is key for a fulfilling next chapter in your life. You might envision working part time, traveling or spending time with your family. Sit down with your spouse or partner to dream up a lifestyle that will leave both of you happy.
Retirement isn’t a spending free-for-all! Even if you’ve done an exceptional job with your savings, you’ll still need a plan in place for how you spend your money.
Now is the time to start thinking about creating different retirement savings “buckets” — or using different types of retirement savings vehicles as you try to maximize your future income. Speaking with a financial planner about employer tax-deferred accounts, Roth IRAs and taxable accounts is a good way to create a holistic plan.
Take the time now, before you retire, to look at all of your assets and decide which accounts you’ll tap (and when) during retirement. Determining where your income will come
from can take a lot of pressure off your plate. Remember to check in every year or two to adjust your income strategy!
Going into retirement with debt can cause unnecessary financial stress. Put together a strategy for paying down your debt (including your mortgage!) before you enter retirement.
Deciding when you and your spouse want to start taking Social Security can play a major role in your retirement income. If one or both of you delay taking Social Security, you could maximize your benefit. However, in some cases, it makes sense to start taking Social Security as soon as you’re eligible. Understanding all of your options is key.
If your employer offers a pension plan, you’ll want to understand your different options for taking your pension during retirement. The typical options include:
A lump-sum payment option will pay out the full sum of your pension at once, while your other pension options will offer a monthly benefit. Some of your monthly benefit options will also provide a benefit to your spouse if you pass away.
Making sure that you have insurance coverage that meets your needs while remaining affordable is key. You should check your life, health, auto, and homeowners insurance policies — and put together a plan for how your coverage will change after you retire. For example, you may want to research health care costs, especially if you’re retiring before Medicare coverage kicks in.
Start by reviewing your beneficiaries and make a point to review them at least once each
year. Next, update your will, and think about reaching out to an estate planning attorney to put together a health directive and Power of Attorney (POA).
A CERTIFIED FINANCIAL PLANNER™ can help you create a retirement plan that’s unique to your goals and values. CFP® professionals have been trained as comprehensive financial planners, and are held to a standard of continuing education that other financial professionals may not be.
We begin every client relationship with a conversation – complimentary, casual, and pressure-free. We take time upfront to get to know you, your unique goals, and outline how Cornerstone may be able to help you. Fill out this form to schedule yours today.