Getting ready for retirement can be exciting but can also come with a lot of work. With several people in my family currently preparing for retirement, it’s interesting to see how they are progressing, the issues they are encountering, and the timeline involved in getting all their ducks in a row before they hit their official retirement.
Therefore, I’ve been noting their progress with interest and creating a pre-retirement checklist of sorts to assist me when I eventually reach my own retirement.
Having a retirement location plan
Finding the right spot in which to live out your retirement years isn’t always the easiest process. I have a parent right now who is trying to solve this exact dilemma. From property prices and things to do, to state taxes, climate, proximity to family, and more, there are all sorts of factors that can play into finding the right spot to enjoy your golden years.
Not only this, but it can take time to plan out this process, so it may be pertinent to place this item toward the top of a pre-retirement checklist. Finding the right location, preparing a home for sale and selling it, and finding a new home can take a year or more, so getting an early jump on this pre-retirement checklist item can be integral to getting everything in order and started off on the right foot.
Setting up a drawdown plan
A proper drawdown plan for assets in retirement may be one of the most critical elements on a pre-retirement checklist. While understanding expenses can certainly be important in retirement, knowing how you will balance your assets and income to cover these expenses and insure that this income will last the entirety of your retirement may be even more important.
Being able to prioritize things like a part-time retirement job income, pension income, Social Security benefits, a retirement plan income, and savings, based upon things like stability, growth potential, amounts, and tax ramifications can leave you walking a delicate balancing act between drawing down enough money to cover costs but not so much that you run out of funds too early.
Contacting critical elements
Of course to get the ball rolling on drawing down assets, you may find yourself with a list of income sources that you must contact. From getting your Social Security benefits in order or starting pension payments, to setting up your retirement plan payment levels, there may be a variety of offices or plan advisors/managers that you must contact to get your affairs in order. And these offices or organizations might not always move with the speed you’d like. Add to this, getting things like Medicare, supplemental health insurance, and similar items checked off your pre-retirement checklist, and the number of people that you might have to contact to get these things rolling could be substantial.
Outlining who you will need to contact and getting a timelines set up well in advance to your retirement may help you move quicker as the date nears and avoid aggravating and potentially costly delays when the time arrives.
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The author is not a licensed financial professional. This article is for informational purposes only and does not constitute advice of any kind. Any action taken by the reader due to the information provided in this article is solely at the reader’s discretion.