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“]
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