Retirement brings change and involves planning.
You are getting older.
As a result, retirement is getting closer.
Although you could choose to ignore this fact, doing so may cost you in the long run.
According to a recent Forbes article titled “5 Crucial Planning Steps To Take Before You Retire,” planning for retirement can remove stress and make your golden years more enjoyable.
What should you consider when planning for retirement?
Owning a large home may be smart when you are rearing children.
For empty nesters, the higher property taxes, insurance coverage, and upkeep costs may not be worth the extra space.
Did I mention ongoing maintenance, too?
Whether you choose to downsize or renovate, you will need to consider future safety, physical limitations, and proximity to loved ones.
Make choices now to foster future independent living.
As you near retirement, aggressive investing is often not suitable.
You tend to have more accrued and more too lose.
Adjust your asset allocation, set up a withdrawal strategy, and coordinate your avenues for income.
Cash flow is king and you do not need to swing for the fence.
Having an estate plan in place is essential once you reach age 18.
For you – and for me – that ship sailed a long time ago.
As you near retirement, you likely have built your wealth.
There is more to financially preserve and pass to the next generation.
In addition to planning for asset distribution, you will need to consider incapacity planning.
Select trusted individuals to make financial and medical decisions on your behalf through your durable power of attorney for financial matters and your advance health care directive.
It is important to work with an experienced estate planning attorney.
Long-Term Care planning.
Statistics show those who turn 65 have a 70 percent chance of requiring long-term care at some point in their lifetime.
Although this care may be necessary, it is also very costly.
Look into funding this potential catastrophic cash call through long-term care insurance now.
It will not get any cheaper the longer you wait and your health could change.
Retirement means more free time for your own interests.
Think now about how you want to fill your days.
Do you want to volunteer or work part-time?
Do you want to travel or visit family and friends?
Include structure, intellectual stimulation, and social interaction into your schedule.
Doing so will allow you to make the most out of your time in retirement.
Your future self will thank you for planning for retirement now.
Reference: Forbes (Aug. 3, 2020) “5 Crucial Planning Steps To Take Before You Retire”