10 Things to Do Before You Retire by Michele Von Hoven, RICP

Here's What to Do Now if Retirement Is on Your Horizon

#1 Ask yourself if you are excited about retirement.

Perhaps the most important thing of all is what will you do with your 7 day weekend? What are you going to do during the first six to 12 months in retirement, and what do you plan to do for the rest of your retired life which can potentially be 20 - 40 years? If you are not excited about retiring, then don’t. Some pre-retirees practice retirement by a four day work week and have a three day weekend. Many people quickly become bored after retiring. It’s OK — even exciting — to return to school or the workplace. What’s your encore plan in retirement?

#2 Determine (realistically) how much money you will spend each month.

Retirement can add more expenses because you’re filling your time with activities, such as pickle ball memberships, other hobbies, travel. Remember to include periodic expenditures such as gifts, vacations, taxes, an occasional new car, and emergencies and those pesky insurance deductibles.

#3 Anticipate the cost of healthcare.

You’ll have no employer to pay this for you — money for Medicare supplemental insurance (also known as “Medigap”) and private health insurance policies will come out of your pocket.

#4 Evaluate your sources of income.You have already figured out what you’ll spend monthly. Now figure out where that Paycheck In Retirement (PIR) will come from. How will you take distributions from retirement accounts and what percentage to ensure that you don’t run out of money.

#5 Review your retirement tax projections.

Many people are shocked to discover that they will pay taxes on Social Security and certain types of income may trigger higher costs for Medicare premiums. The order of distributions from retirement accounts will have an effect on income taxes too.

#6 Boost your retirement savings.

Take advantage of the catch-up provisions in your employer’s retirement plan or your own IRA. Once you maximize contributions to your employer’s plan and IRAs if you qualify, invest additional money into investments or annuities.

#7 Consider Claiming Strategy for Social Security.

Getting Social Security right is absolutely critical to your retirement success. In fact, half of Americans aged 65 and older rely on Social Security for half their income or more. Unfortunately, there are many ways to file for Social Security, and only a few will be right for you and your family.

#8 Revise your investment strategy.

The way you’ve handled your investments over the past 30 years is not how you should handle them for the next 30 years. What should you be invested in? While preparing for retirement, you were focused on asset accumulation. When you’re in retirement, you need to focus on income and on keeping pace with the increasing cost of living. Assets must be flexible and liquid so you can meet needs you did not anticipate. New words will enter your vocabulary: rollovers, required minimum distributions, avoid tax penalties, exercise options and decumulation.

#9 Review your estate plan.

Review your will, powers of attorney and/or trust. Don’t have them, then determine what your specific needs are to get them. These documents can help protect you and your assets while you are alive and benefit your spouse and children when you pass on. If you do nothing, you will have a judge and attorneys pour over your assets and liabilities and divide your assets. It’s called the State’s plan. (Whatever state you reside)

#10 Crunch the Numbers - Identify the Gaps - Most important!

Create Your Retirement Income Roadmap a holistic plan combining all of the above points together. Your comprehensive plan provides you with a clear picture of your needs, wants and wishes, your roadmap is the GPS to peace of mind in retirement - it’s a beautiful thing.

Having a plan in place for retirement feels good. Now it’s your turn.

To get started contact Michele and schedule a 30 minute conversation to see how you can benefit by saving time and money to Retire $ecure: calendly.com/befitfinancially

Michele Von Hoven, RICP, Fiduciary Wealth Manager and Planning, Retirement Income Certified Professional michele@BeFITFinancially.com

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