Today’s Prep:
The last few years leading up to retirement can have a significant impact on what your retirement actually looks like. This is when you start making the decisions and plans you’ll actually implement in a few years. Are you ready?
Equipping Points:
As you near retirement, there are a lot of things to consider and financial items to get in place. After years of saving for retirement you might ask, now where do I start? The ten years leading up to retirement make up an important decade as you review your plan and have a bit more clarity on what your life in retirement could look like.
Deciding what’s important is your first step, and it requires you to answer a lot of questions. When do you want to retire? And what do you want to do in retirement? Figuring out where your priorities lie will allow you to better determine how to plan. Find out how much money it will take to maintain your style of living. Is there a gap in your income streams? If so, how do you fill that gap? Or, would you rather keep working? Do you like your job or want to pursue a job that coincides with your passion? Finally, do you want to leave a legacy?
What are the numbers you need to know? Knowing these numbers will help shape your plan. What numbers will decrease in retirement and what will increase? Maybe you’ll want more money to travel or have less to pay for in taxes. How much money will you have or what kind of income streams will you have coming in? Consider also what your healthcare costs may look like. Then you’ll want to stress test those numbers to make sure they work with your plan.
When you make a plan, you’re projecting into the future and basing some of those decisions on assumptions. Over time, those things may change. Updating your plan on an annual basis will help you make decisions that impact your day-to-day and allow you to enjoy your life, knowing that your plan is working as needed.
Listen to the full episode in the play above or click on the timestamps below to prepare for the final decade before retirement.
1:34 – Deciding what’s important is the first thing to do.
4:04 – Know your numbers and understand what it will take to maintain your standard of living.
7:13 – Get a handle on your healthcare. How will you pay for it?
9:55 – Understand that your plan and needs will continue to evolve.
Related Resources:
Should You Take House Debt Into Retirement?
Retiring Early: Is It Possible and Is It Right For You?
Today’s Takeaway:
[spp-tweet tweet= “Healthcare is a big one–you need to have a plan for that and how you’re going to pay for it. We will need it in retirement. Everyone needs it, but in retirement you access it a lot more, so make sure you understand the cost and work it into your plan. –Eric Peterson“]
Subscribe To The Podcast:
Apple Podcasts - Google Podcasts - Spotify - Stitcher - iHeartRadio - TuneIn
Check out some other recent episodes
Answering Common 401K FAQs
The 401k is the most common way that people save for retirement, which is why we get a lot of questions on the show and in the office about this employer-sponsored plan.
Read More
Mistakes People Make When Choosing An Advisor
When you’re ready to start working with a financial advisor, how do you find the right person to help you reach your financial goals?
Read More
Financial Lies We Tell Ourselves
We all tell ourselves little white lies from time to time. But when it comes to our finances, these “little lies” can have se-rious consequences.
Read More
The Stress That Comes With Retirement
Eric discusses why this phase can be so daunting and offers strategies to ease the transition.
Read More
Finding Financial Silver Linings
Throughout our lives, there will be times when the markets rise and times when we experience downturns. Largely, we don’t have control over the circumstances we’re dealt, but we do have control over how we respond to those situations.
Read More
Unasked Retirement Questions You Shouldn’t Ignore
Tune in to this episode with Eric, as he breaks down some frequently unasked retirement questions that are very important to consider.
Read More
The Diverse Definitions Of Diversification
Diversification is one of those buzzwords you hear often in financial planning. While many people know it’s important, few are clear on what it actually means when applied to various aspects of their financial strategy. In today’s episode, Eric and Marc will bring you the diverse definitions of diversification.
Read More
The Use Of Technology In Financial Planning
As technology keeps advancing, it’s made our lives easier in so many ways. Tasks that used to need outside help can now be done on our own with just a few clicks. This shift has also brought more accessible online financial tools, but how accurate and helpful are they really?
Read More
Retirement Planning Conversations With Dorothy Parker
Dorothy Parker is one of the great writers of the 20th century. Her wit and prose have been appreciated by readers for generations. But are there any lessons we can learn when it comes to finance with some of Parker’s most well-known quotes?
Read More
Mailbag: Moving To A State With Income Tax And More
In this episode, Eric is answering your questions! We’ll cover a range of topics today, including key considerations for income taxes when moving to a new state, how to initiate financial conversations with parents or grandparents, and whether using a life insurance policy to save for a college fund is a wise choice.
Read More