Retirement planning combines dreams with reality. The most important things to do before retirement involve planning for both in your future lifestyle.
At some point in their career, everyone dreams about retirement.
We imagine travel, building or buying a second home, and visiting grandchildren.
It’s not as much fun to think about downsizing, budgeting, and saving money.
But these are some of the most important things to do before retirement to make the dream scenario a reality.
It’s important to do a little soul-searching several years before you retire. If you’re just marking the days until you can make your exit, then use the time well to identify why you’re looking forward to leaving your job. And what you’d rather be doing.
If you love your job, you may be reluctant to retire. And that’s okay. More companies are recognizing the value of experience and mentorship.
You may find your role shifting, or even expanding, but keeping you working at a job and in an organization you love. If you do leave your job, it doesn’t mean you can’t get another one. Many retirees begin “third act” careers in fields they care about after retiring.
An important key to a happy and successful retirement is preparing yourself financially so you won’t have to worry about outliving your money. This means figuring out how much you’ll need each month to live comfortably, whether in one of the fantastic ERL Retirement Villages or in your own home. Plus you’ll need to figure out how to generate that income when you are no longer working. It means paying down debt, reducing expenses, and saving as much as you can.
Also, think about how you will pay for medical insurance. Medicare pays a lot, but not all, of your medical bills. You’ll probably need a Medicare supplemental or Medigap plan.
Start saving more money—as much as you can—in an emergency fund. Plus consider purchasing long-term care insurance if you can find it.
Assess your retirement plan. Work with a qualified financial advisor to determine if you need to rebalance the mix of investments in your 401(k), 403(b), or IRAs between stocks, bonds, real estate, and possibly an https://thedirecteffect.com/how-to-decide-if-a-retirement-annuity-is-right-for-you/annuity. You should also talk to a financial advisor or accountant about when you can or should begin to take social security payments. And you should ask about the tax implications of your financial decisions.
Sit down and have a discussion with your partner to sync up your ideas of retirement life. If you always assumed you’d downsize and move closer to the grandchildren, confirm your assumption with your spouse. They may have an entirely different notion of the perfect retirement location. Talk about the more everyday things, too—like who will do the yardwork and how much either of you likes to cook.
Finally, be ready for final arrangements. Estate planning puts your house in order. Plus it gives you peace of mind that you have done what you can for your children (if you have them). And that you’ve decided how best to distribute your assets after you’re gone.
Finishing your financial and your estate plan before you retire frees you up to make a new plan for your time—your hobbies, your travel, and your family.
Planning enables you to create a sustainable financial strategy. For instance, if you’re considering relocating to a luxury real estate community after retirement, you might want to start putting aside more than what you think is enough for the down payment on a retirement home.
The more you think and act on your retirement plan, the more your life will be stable. Key questions to ask yourself include:
“What style of retirement do I want, and what lifestyle will it take to achieve it?”
“Where is my ideal place to live after retirement?”
“How much longer will I work?”
“Will I be able to afford the luxury home that’s right for me?”
It also helps to involve a financier advisor. The professional can assess your current savings and spending to figure out what kind of house you can afford. Ideally, they should also be able to name some neighborhoods in your price range that fit the image you’re looking for. Then it’s easy to narrow down your list of communities during retirement relocation research.
There are so many things that you need to work on when it comes to the perfect retirement choices. Getting help is a great way to make sure you get things done right. For example, now, when you reach retirement age, you might find that your body is not as fully functional as it once was. As a result, you may require care and attention from experts. With this in mind you might want to check out good palliative care places, like Three Oaks Hospice & Palliative Care Services.
Your goal should be to make sure you have the right amount of help with day to day living – so you can enjoy the best quality of life.
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