Do a “spring cleaning” of your retirement plan

Retirement


Whether your retirement is five years away or fifty years from now, dusting off your calculator and considering your retirement plans can make a big difference in the rest of your life.

Retirement tip of the week: While the weather is getting nicer and you’re planning your summer vacation, also consider your long-term goals and make changes if necessary.

Individuals approaching retirement, such as within the next 10 years, may be more visible. While it’s impossible to know exactly what your retirement costs will be, including rent, mortgage, utilities, groceries, healthcare, hobbies, and more, many people approaching retirement know how they envision life after retirement. may have a better idea about You can estimate accordingly. This could include where you live, which is a big factor in calculating your cost of living (including taxes as well as living expenses), what you plan to do in retirement, and who you plan to spend it with. .

read: 13 things you should have on your pre-retirement checklist

Retirees can quickly plan for retirement by looking at what they expect to spend in retirement and how much they are saving for retirement (or what their retirement income will be). You can start with Are those expectations still realistic from the last time we saw them? If not, how should they be adjusted?

To take this opportunity to create a list of all expected sources of income after retirement, such as retirement accounts, social security, annuities and life insurance policies, and to store information to access those assets and related information. Please secure a safe place for rules and requirements. This is a good time to share that information’s login credentials with someone you trust, such as a spouse or adult child.

read: I retired at age 55 with a 401(k) and $2 million. Should he spend $200,000 on a taxable brokerage to buy an annuity or use it to fund the Roth conversion?

For those nearing retirement, planning is less about what exactly your finances will look like in retirement and more about what you’re doing now to keep your money going for the rest of your life. Check your account balance (but don’t worry if your current balance isn’t great due to market volatility). If you don’t have a specific account, such as a 401(k) or IRA, open one. If you’re only donating a few bucks.

Review your spending to see what fits your financial goals and interests and what doesn’t. To do this, spend a few minutes each week checking your credit or debit card account online or checking your monthly statement to see where your money is going. If you can’t save a lot of money for the future yet, don’t worry. Make a plan to grow your savings in a rational way.

read: These seven simple portfolios have outperformed the S&P 500 for over 50 years.

And if you haven’t already created a financial plan that considers how much you’ll save for retirement and how you’ll plan your life for retirement, now’s a good time to start. You can then update your plan. spring.

April is National Financial Literacy Month. To mark the occasion, MarketWatch is publishing a series of “Financial Fitness” articles to help readers improve their financial health and offer advice on how to save, invest and spend money wisely. Click here for details.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *