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Approaching Retirement? Let's Focus!

Approaching Retirement? Let's Focus!

April 09, 2024

As retirement draws nearer—within the next 10 years—you might find yourself contemplating this significant life change. The transition can feel overwhelming, but don't worry, we've got you covered with some helpful points to streamline your focus.

  1. Reevaluate Your Living Expenses: It's essential to reconsider your living expenses multiple times leading up to retirement and beyond. While costs like commuting and dry cleaning may decrease, others such as travel and healthcare may rise. Working with a professional to create a financial plan can help you estimate your monthly expenses accurately, factoring in everyday living, car replacement, and future big-ticket expenses like vacations.

  2. Explore All Income Sources: Take stock of all potential income sources, including retirement plans, IRAs, spouse's accounts, rental income, and even potential part-time work or consulting gigs. Don't forget about Social Security benefits—visit the Social Security Administration's website for an estimate and consider signing up for a my Social Security account for detailed benefit information.

  3. Strategize Tax Management: Think about tax implications in retirement and consider whether tapping taxable or tax-deferred accounts first makes more sense. Discuss strategies like Roth conversions with a qualified tax professional to optimize your tax situation.

  4. Pay Off Debt and Boost Savings: Focus on paying off debt, including mortgages, to provide flexibility in retirement spending. Maximize contributions to retirement savings plans and IRAs, taking advantage of catch-up contributions if you're 50 or older.

  5. Plan for Healthcare Costs: Health care expenses tend to increase with age, so make sure to account for them in your retirement plan. Consider supplemental insurance policies and long-term care insurance to cover potential gaps in Medicare coverage.

Breaking down these factors into manageable categories can make the transition to retirement feel less daunting. If you're considering completing a financial plan before retirement, don't hesitate to schedule a meeting with us on our website We're here to help you navigate this exciting phase of life!

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