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Retirement Checklist

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Many of us spend our entire working life preparing for retirement. Whether it’s contributing to retirement accounts, paying down mortgages and debt, acquiring pension years, or paying into Social Security.

As retirement approaches, what steps can you take for a smooth transition?

Take Inventory of your Assets

While you are in the working world, it can be difficult to keep track of all your investments, savings vehicles and bills that you have acquired over time. As you prepare for retirement, it is important to take the time and track down all bank accounts, retirement and brokerage accounts, along with all outstanding debts. Once you have taken a full inventory, create a safe place to store all username and passwords. Potentially share this location with a trusted family member or friend in case of a future emergency. Next, consider consolidating as much as possible. Reduce the number of bank accounts, create a plan for your outstanding 401(k) or 403(b) with work, and minimize debt. This will create a simpler and streamlined transition into retirement.

 

Prepare Finances

Build a Budget

Do you know how much you are spending on a monthly basis? As you leave the workforce, it is extremely important to have a handle on expenses. Will you spend more on travel during retirement? Will the mortgage be paid off? Creating a monthly budget for retirement will allow you to monitor spending and reduce the risk of spending through your savings.

Social Security

Identify Income Sources

What is your plan for Social Security? Do you have a pension? Do you have annuities? Do you plan on working part time? By determining income sources that will be available, you and your advisor will be able to create a plan for your retirement savings. Between your monthly budget and income sources, you are then able to determine how much you may need each month from your retirement assets in order to make ends meet.

Practice Retirement

This is the fun part! Retirement is a major life transition. You now have plenty of free time which was once filled with commutes, hours at work and mingling with colleagues. So, as you prepare for retirement, start practicing for it! Set lunch dates with old friends, try out different hobbies, start learning how to enjoy free time again and shaping the retirement that you have worked so hard for.

Know Your Health Insurance Plan

It is important to have a health insurance plan in place before retirement. Can you continue a health care plan through a past employer? Have you signed up for Medicare? Which supplements may be beneficial to your situation? If you are retiring before age 65, how do you plan to cover health care insurance before Medicare kicks in? These are all important questions to answer as you create your retirement plan.

Review Estate Plans

Retirement is a great time to evaluate estate plans and make sure they are in line with your current wishes. Provide copies to a trusted family member and/or your financial advisor so that others have access to them, just in case. Also, check in on your investment account and outstanding life insurance policies to make sure beneficiaries are up to date.

Real Estate Strategy

Do you plan to stay in your home long-term? Would a retirement community be more conducive to the lifestyle you would like to live? Do you need to refinance or acquire a Home Equity Line of Credit (HELOC)? Refinancing and nailing down a HELOC are easier to do while you still have an income, so this is a great time to talk about your options with your financial advisor. 

Establish Retirement Investment Allocation

The transition into retirement comes with a great deal of changes. One of these changes is moving from the accumulation phase or saving for retirement to the distribution phase or pulling from your retirement savings. This is a huge shift in mindset. During this time, your risk tolerance may not change, but you may see an increased need for cash or liquidity. That is why it is important to talk with your financial advisor and develop a transition plan for your investments.

Real Estate

Get Excited!

Take a deep breath! You are almost there! Many people work hard their whole life to make it to retirement. Congratulations!

Our team at Sharkey, Howes & Javer is here to help you every step of the way on the road to retirement and beyond. Contact Sharkey, Howes & Javer today to speak with a CERTIFIED FINANCIAL PLANNER™ about your own retirement journey.