The Checklist For Retirement: All You Need to Know

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Preparing for retirement is something we all have to think about. It might even be sooner around the corner than you think! Before you retire you have to prepare in multiple ways – investing is one of those things. To get you safely to retirement, we’ve created a checklist. If you have a few years to go, this list might also be something for you – it is always better to prepare in advance. Make sure to start with the right preparations we discuss below.

Contribute to Your 401(k) and IRA

A 401(k) plan at work is a great way to boost your retirement savings. However, if you’re also trying to save outside of your employer-sponsored retirement plan, you might have some issues. The good news is that you can contribute to an IRA while also contributing to your company’s 401(k). However, there are some boundaries things to be aware of. While both a 401(k) and an IRA can help you save for retirement, there are a few key distinctions. An employer establishes a 401(k), whereas an individual establishes an IRA.

When it comes to investment options, IRAs are far more flexible. A 401(k) allows you to choose from a variety of investment funds. An IRA, on the other hand, allows you to invest in virtually any stocks, bonds, or mutual funds. IRAs can give flexibility to your retirement plan, so using one to complement your employer-sponsored retirement plan is always a good idea.

Social Security

Obtain your statement and check your benefits on the Social Security Administration’s website. It’s a good idea to double-check that you’ve gotten full credit for everything you’ve earned. Furthermore, it’s critical to understand and know what your rewards will be if you claim your social security at different ages.

Different Financial Resources

In addition to your 401(k), IRA and/or social security, it might be a good idea to take a look at other financial assets that are available for your retirement. Before you retire you need to know how much you will need and how much extra financial resources is necessary in order to accomplish this. There are a few options available to support your retirement lifestyle:

  • Interest in a business
  • Annuity
  • Taxable investment accounts
  • Life insurance (with a cash value)
  • Stock options (from employer)
  • Retiree health insurance
  • Inheritance

Make a Withdrawal Strategy

Determining which of your accounts to access and in what order can be one of the more difficult aspects of retirement. Income tax vary depending on the kind of account. It’s a good idea to talk to a qualified tax or financial expert about this, especially if you plan to be in a high tax bracket in retirement.

Ask Questions

In order to obtain the right information, make sure you ask the right questions to everyone that can give you practical advice. For example: talk to your employer, bank, union, or a financial adviser. They are here to make your retirement and all the paperwork that in involved, a lot easier.

Timeline: Years & Weeks For Retirement

5 years before you retire, you should already start to prepare for the big day. Ask yourself questions like: how much have I put away up until now? What will the shortfall be? You might want to speak to a financial advisor to help you make a plan. Maybe your family members or friends can come up with ideas. It doesn’t matter how you look at it: talking is always a good idea.

With a half year to go, make sure to speak with your HR manager or financial advisor to see where you stand. With less than 6 months left, you might want to know how you are going to spend the last days. Besides that, it is also time to start thinking about what you’re going to do in the first weeks and months of your retirement. This period is usually more expensive, because you might want to travel of visit other places .

With just a few weeks to go, make sure that your retirement fund has your exit documents and tax registration number. The name of the plan, membership number and contact details of the fund manager is also something that you’ll need in these last few weeks.

Determine what you’ll need in retirement to maintain your lifestyle. If you require the assistance of a financial specialist, make sure to get it. A successful retirement requires planning, and this time period is important in that regard.