Want To Know What You Should Be Checking Off Your List Before Retirement?

November 17, 2022

Make sure you finish these items before you retire smoothly

Retirement planning is hard. Even if you plan to retire in 10 years, it’s very important that you’re ready for those years. Here’s a checklist of suggestions and hacks to help you prepare for those years to come.

The key takeaways are listed below:

Contribute to Your 401(k) and IRA

Many retirement savers consider these to be their highest-earning years. It’s crucial to contribute as much as possible to your employer’s retirement plan, IRA accounts, and so on. Every bit helps, even if these contributions don’t compound as much as those made in your 20s and 30s.

You might be eligible for Social Security benefits if you have worked long enough.

It is likely that those currently in their 50s will receive the benefits they have paid for. You can obtain your statement and check your benefits on the Social Security Administration website.2

It’s important to make sure you’ve received full compensation for your work, as well as to know and recognise what your retirement payments will be, based on your age.

There are a number of strategies to consider if you are married when it comes to filing for social security benefits. Using a calculator can help you make the best decision. The Benefits Planner from the Social Security Administration and the AARP’s Social Security Calculator are both worth trying.

Collect Information For All Your Retirement Accounts

It’s not unusual for someone to have worked at five or more jobs over the course of a career these days. This can result in several retirement plans with former employers, if you’re married and your spouse works. This number can obviously increase if you’re married and your spouse works. In addition to your Social Security benefits, of course.

An old pension, old 401(k) plan accounts that they’ve left with their old employer and haven’t touched for years, and multiple IRA accounts are among the things I’ve seen over the years.

It is a good time to make sure you have a record of all these old plans, as well as a strategy for integrating and investing them properly. It’s an even better time to make sure that your old 401(k) and IRA accounts have up-to-date contact information, and that your old employer has your current details.

Even if these accounts are relatively small, they can add up to real money for your retirement if you have several of them.

Include It in Your Other Financial Resources

You may also want to take a look at your other financial assets at this time to see if they could help support your retirement lifestyle. These assets may include:

You may gain from the NUA rules if your 401(k) account contains company stock. In addition, check to see if your company offers retiree health insurance. Will you work full or part-time during retirement?

It’s not uncommon for companies to offer incentives for longer-tenured employees to take an early retirement. If you’re the recipient of such an offer, please consider taking it on two counts.

The first offer might be quite financially attractive, and second, if you don’t accept the first offer, the subsequent ones are usually not nearly as lucrative. After that first offer, you likely are “on the list,” so to speak.

Someone might be in line for an inheritance from their parents or others. I’d advise against including this as a retirement asset, for the reasons stated. Things might happen, such as their parents living longer than expected and reducing much of their wealth.

Calculate How Much You’ll Need to Retire

You’ve been thinking about this for a long time, so it’s time to start making decisions about how you will live in retirement and, more importantly, figure out how much money you’ll need.

Are you planning to move or reduce your house size in retirement? Are you hoping to free yourself from debt before retiring? Will you have to support adult children in addition to yourself? You may also phrase this question as a retirement budget question.

Use a Retirement Calculator to determine how much money you will need to live on in your retirement

You might be able to find a retirement calculator online, or even through your company’s retirement plan provider. Make sure to check the methodology and the underlying assumptions of the calculator you choose, because some are better than others. If you use a good calculator, you may get an idea of whether your retirement plans are realistic or not.

Retirement projection tools typically ask you to enter your retirement plan assets, pensions, Social Security, and other investment funds. Based on your investment allocation and other variables, these programs will estimate how much retirement cash flow your funds might support.

Knowing that you have a potential shortfall as early as possible prior to retirement is a lot better than not knowing. This might be a good time to seek the services of a fee-only financial advisor. Besides their expertise, a qualified advisor can add a detached third-party perspective to your retirement planning.

Consider a Retirement Withdrawal Strategy

Retirement accounts can be quite complicated, partly because you need to decide which ones to use and in what order. Different types of accounts have different income tax consequences.

Withdrawals from a traditional IRA account or a 401(k) account are usually treated as ordinary income. In contrast, Roth IRA accounts are often exempted from taxation as long as you follow certain rules.

When taking annuity payments, you may want to pay some or all of them tax. The following describes the kinds of investment that may qualify for preferential long-term capital gains treatment if certain rules are followed. If you make poor investment choices, your financial well-being in retirement may be harmed.

It is a good idea to consult with a qualified tax or financial advisor if you expect to be in a high tax bracket during retirement, particularly if you are a business owner.

Apply Your Strategy to a Real-World Context to Test Its Durability

Even the most carefully thought-out plans often don’t go as planned. What if you suffer a life-threatening medical emergency that prevents you from working until retirement? What if your company terminates your employment prior to your desired retirement age? Will your retirement plans still function?

The Bottom Line is a business term used to refer to the items or ideas that are most important in a business

It’s critical for investors to have a handle on their retirement resources before retiring. These include Social Security, pension plans, retirement accounts, and so forth.

Make sure you have everything you need to support your retirement lifestyle down before you begin planning your retirement. A good retirement requires planning, so don’t hesitate to seek professional assistance if you need it.

Your Fresno Financial Advisor Takeaways

Soutas Financial in Fresno wants to remind you of the following points. Many retirement savers consider these to be their highest-earning years. It’s crucial to contribute as much as possible to your employer’s retirement plan, IRA accounts, and so on. Every bit helps, even if these contributions don’t compound as much as those made in your 20s and 30s. When taking annuity payments, you may want to pay some or all of them tax. The following describes the kinds of investment that may qualify for preferential long-term capital gains treatment if certain rules are followed. If you make poor investment choices, your financial well-being in retirement may be harmed.

We Can Assist You

Are you trying to find a financial advisor in California? Look no further than Soutas Financial & Insurance Solutions Inc. your Fresno financial planner is committed to helping take the complexity out of retirement planning. By using a variety of insurance and investment strategies that focus on Asset Protection, Long-Term Care Strategies, Legacy Planning, Tax-Efficient Strategies IRA, 401(k) & 403(b) Rollovers, Life Insurance, Annuities, Medicare, we can help you develop an overall retirement income strategy specific to you and your family.

We have a strong team of professionals helping ensure you receive all the assistance you need not only in developing your retirement income strategy, but in maintaining it throughout your retirement. Contact us today at 559-230-1648 or visit us today at Soutas Financial to get your retirement plans on track for success!

Other Fresno Financial Advisor Articles

Soutas Financial & Insurance Solutions Inc.
333 W. Shaw Avenue Suite 106
Fresno, CA 93704
(559) 230-1648
Soutas.com

 

YOU HAVE A

DREAM.

LET'S MAKE A

PLAN.

CONTACT US

Phone: 559.230.1648