7 Things to Consider Before Retirement

1

Estate Planning

If you die without proper estate planning, it could create unnecessary anxiety for those left behind and needlessly waste a portion of your assets on taxes, attorney, and probate fees. Have a lawyer review your will, account titling, powers of attorney, medical directives, and beneficiary designations to make sure everything is up-to-date and appropriate for your stage in life. You want to be certain that you and your beneficiaries are properly protected. Knowing that you are prepared should provide peace of mind.

2

Organize Necessary Documents

Now that your documents are up-to-date, do your loved ones a favor and organize it all in one place. Conrad Siegel has developed a Personal Roadmap to help with this task. Also, sharing a duplicate set of documents with a trusted family member or attorney is a good idea.

3

Health Care Insurance

Medicare begins at age 65. If you plan to retire before 65, make sure you understand your health coverage options and costs. Even after Medicare begins, some costs are not covered. For that reason, you will want to investigate Medicare supplement plans that fill in the “gaps”. The Medicare program is complex. Applying late may cause delayed benefits or increased premiums. Make sure you know the rules for your situation. You may also want to consider long-term care insurance.

4

Take on debt while working

As a rule of thumb, large debts should be avoided for most retirees, but there are circumstances where new debt can make sense, such as financing a new home for retirement or an RV for traveling. Why now? The loan application and qualification process will be easier while you still have earned income. You may be able to negotiate lower interest rates and better terms if you have a solid credit score and low overall debt.

5

Use vacation time to “test drive” retirement

Make a list of the areas you might consider moving to during retirement and use your vacation time while you are still working to visit them. If you enjoyed it in the winter, go back in the summer as well. Who knows, it might end up becoming your future home.

6

Declutter

If you plan to move or downsize in retirement, then get your home ready now. Clear the clutter, complete the repairs, and update whatever is necessary to tip the sales process to your advantage.

7

Retirement planning is not a DIY project

Planning for financial independence is not a do-it-yourself project. You have saved your whole working career for retirement. You do not want to cut corners as you approach the home stretch. Consider working with an adviser who is a full-time fiduciary to help make sure your financial plan is up-to-date. These individuals may describe their fee structure as “fee only” or “fee-for-service.”