It is important to start thinking about several pre-retirement steps to take because the steps you take 10 years before retirement are critical for a successful retirement. Time could be running out if you are under 10 years from your planned retirement date so it is important to consider all of these steps.
The very first step should be to maximize retirement contributions, maximize contributions to your health savings account and start saving outside of your tax deferred accounts. Building the largest possible saving nest egg is critical to living your retirement dreams.
If you have non-mortgage debt, then you want to aggressively reduce it before retirement. Going into retirement with credit card debt or other large personal loan debt is not recommended. It can be a draw on your retirement income and keep you from having a financially stress free retirement. You also need to have a plan for paying off you mortgage which might be as soon as possible or early in retirement depending upon your financial situation.
As early as you can before retirement, make decisions about long term care insurance, the earlier you can start this insurance the less costly it will be for you. Finally, decide how much life insurance you need to keep as you move closer towards and into retirement, especially if you have been very good at building your retirement nest egg.
Talking to your financial advisor or establishing a relationship with a financial advisor before heading into retirement is a fundamental step. Having multiple scenarios presented to you can help you make the important choices to achieve all of your financial dreams.
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Categories: Financial, Planning, Retirement