Retirement Planning Advice: 5 Rules To Follow

Retirement Planning Advice: 5 Rules To Follow

by Jul 12, 2018

Just like funny cat videos and weird movie memes, the internet is full of retirement planning advice. Successfully transitioning to retirement is often one of the biggest causes of anxiety for those who are about to stop working, and it can be difficult to figure out the best way forward.

While every pre-retiree’s situation will be a little bit different, there are a handful of rules that, if followed, will vastly simplify your transition and make settling into retirement much easier.

1) Eliminate Your Debt

Peace of mind is one of the most undervalued components of a successful retirement, and one of the best ways to ensure it is to eliminate all your debt before you stop working.

Any retirement planning advice that doesn’t prioritize eliminating debt isn’t worth the digital paper it’s printed on. Paying off mortgages, credit cards, student loans, and other outstanding debt will allow for much easier budgeting and to make adjustments to your living style if needed.

2) Budget For New Activities

Once you do retire, you’ll have a lot of newly found free time to fill up. Whether you’re an avid golfer, world traveler, or aspiring foodie, it’s important to account for whatever activities you plan on filling the time previously occupied by your career.

3) Update Your Estate Plan

Prior to retirement, take a good, hard look at your estate plan and get clarity on all your assets. Update your will and beneficiaries, assign someone as your healthcare power of attorney, and revisit a conversation with your durable power of attorney to review all your assets and wishes post mortem.

Having your affairs in order before you retire is another way to help ensure peace of mind, and getting it done eliminates that nagging sensation of having something unfinished.

4) Review Your Healthcare

After eliminating debt, the best piece of retirement planning advice we can give is to ensure that your healthcare plan is taken care of. Healthcare is a complex topic, and it’s important to know how your benefits are going to change once you enter retirement.

In all likelihood, you will either retire with employee sponsored health care or Medicare (once you turn 65 years old), but do you know what that means for you? If you don’t, waiting until after you’ve retired is not the best time to start finding out.

5) Prepare For A Fixed-Income Lifestyle

Depending on what types of assets you have when you retire, there’s a good chance that you’ll be living on a fixed monthly income comprised mostly of your savings and retirement accounts.

While some people will have investments or property that generates income after they’ve retired, it’s still a good idea to be prepared for a fixed-income scenario.

Talk To A Financial Planner

Getting retirement planning advice from an experienced financial planner, and discussing your options with them, is one of the best ways to start preparing for life after work. Your financial planner can evaluate your unique needs and provide insight about what to expect when you’re ready to make the transition.

To learn more about retirement planning, or to speak with a financial planner about your own personal retirement plan, please contact us today.