For more than 30 years, you work diligently to set yourself up financially for your golden years — the glow of retirement is finally becoming apparent. Alas, it’s not the time to ease up.
According to the Employee Benefit Research Institute, more than 10,000 baby boomers enter retirement each year. So far an approximate of one-quarter workers with the age of 55 and older – concerned about preparing for the next phase.
The last 12 months – before you call – it is especially critical to putting your retirement on a prosperous path. It’s time to manage your portfolio, health care, and other finances in order to enjoy your life after job.
Michael Woloshin Sheared the Turning-Point Checklist
12 Months Out:
Dial Back On Stocks Now.
You might expect growth that equities provide, but even a 15% market slide in the year before you retire can erase four years’ worth of income. Therefore, cap stock exposure to around 50% in your sixties, advises Michael Woloshin– Specializing in helping pre-retirees and retirees earn consistent and predictable retirement income.
Your paychecks are finally going to stop. Therefore, make a downshift from stock, move that money into a savings or money market account to save at least one year of expenses, says Michael Woloshin experienced investment advisor.
Set A Realistic Leaving Budget.
Use the worksheet for retirement planning to list all of your fixed and discretionary expenses. Then evaluate – how safe that level of spending is likely to be, based on the size of your nest egg and age.
6 Months Out:
Social Security Strategies.
At 62, you can claim Social Security, but if you failed to make until 70 – your checks will be 76% bigger. Turn around to an expert social security income planner to find the best strategy for you.
Find How to Pay for Health Care.
Check whether your company offers retirees medical, long-term care, and other insurance coverage. If not, then get health insurance. On the other hand, if you aren’t yet 65 (when you qualify for Medicare), then compare plans, where you can stay on your employer plan up to 18 months after leaving.
3 Months Out:
Begin With The Rollover Process.
In a small 401 (k) plan, average fund expenses can run worth about 0.6% of assets. You can cut those fees at least in half by switching into index funds at a low-cost IRA provider. You should consider financial adviser that can help you to decide.
Put Your Name Down For Medicare.
Nearing 65? You can put your name down for Medicare – three months before turning to that age. Also, figure out incremental plans to incorporate expenses that Medicare does not, such as dental care and prescription drugs.
Post-Career Itinerary Into Action
Put your post-career itinerary into action – Research and join volunteer groups, reach out to contacts if you plan to keep a hand in work, begin planning your big trip, or start a new exercise routine.