Retirement Checklist

I highly encourage everyone to get a plan together yet many people still have trouble following through with the steps. I am going to reveal the steps you need to take leading up to your retirement date and you might be shocked to know that you need to start 10 years before you’d like to retire.

10-year plans:

1. Calculate the streams of income such as Social Security timing, pension benefits, and required minimum distribution from your IRA. See if there are benefits to taking it later and if you can bridge the gap to reduce your taxes in the meantime.
   
2. Create your budget and see where shortfall or excess are from the budget. Most people who have excess may be subject to higher taxation and increased premium​s​ on Medicare​​​ benefits​. If you have a shortfall how can we create an income stream?
   
3. Ensure legal documents are updated especially durable power of attorney or any beneficiary statements. This is planning for a worst-case scenario and creating a long term care plan as well.
   

5 years plan:

1. Evaluate the benefits of your contributions to pre-tax vs after tax/Roth. You may want to stop contributing and start moving to an after-tax or ROTH. Adjust your investment strategies at this point and have a financial professional discuss your risk tolerance.
   
2. Depreciation schedule, I have attached one that is a bit older but gets the job done. When you plan for the unexpected we can smooth out an income stream and not be worried about Murphy's law whatever can go wrong will go wrong.
   
3. If you are looking to buy another property or refinance this is a great time because financing options in retirement become more difficult.
   

1-year plan:

1. Sign up for Medicare 3 months before you turn 65. If you are not eligible to look at healthcare plans or see if your work provides COBRA.
   
2. Stop all contributions to 401k and roll it over to a self-directed IRA if you can. The contributions that would have gone in there will not be deposited into a high yield savings account as your emergency fund.
   
3. Find your purpose. Retirees who have been forced to retire or succumb to the pressures of the job have a hard time transitioning their time and have lower life expectancies.
   

A plan can start at any age I know you will look forward to seeing the “Checklist from your 30’s to 60’s” that I will post next month.



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