Retirement is a big deal. If done right, it will feel like a vacation. A time to do anything you want. But, getting to that point is overwhelming. Make yourself a retirement checklist to make things easier.
8 Things to Be on Your Retirement Checklist
These 8 things have to be on your retirement checklist.
1. Pick Where You Want to Live
Where do you want to spend the rest of your life? Does your current home support this? Do you want to live near your family? Maybe get rid of your things and downsize?
These are questions you need to ask yourself and think long about the answers.
2. Practice Retirement Now
Retirement is a huge change in lifestyle. You won’t have a place to go every day. It’s easy to get isolated. You can even get easily depressed.
Because you won’t be in your normal social circle, you need to find a different way to be social. You could try volunteering, clubs, or even sports.
3. Get Rid of Your Debt
If you can, you should get rid of all your debt before you retire. This way you can truly enjoy it. Without debt, all your costs are the ones that you have control over.
You can make a list of all your debt. That way everything feels more organized. You can have the debt with the highest interest at the top of the list and lowest interest at the bottom.
4. Think About Your Risk Profile
A risk profile has to do with investing. When you are around 5 years away from retirement, it’s time to look at all your investments. You may have been more aggressive and free while you were still making money, but it’s different now.
Now you aren’t making a lot of money. You need to diversify your investments. This way you lower your risk of losing a lot of money.
5. Consider Healthcare
Healthcare is expensive, and it becomes more important as you get older. You need to keep this in mind when you make plans for your retirement.
Medicare might not pay for any expenses that happen out of the states just as an example.
Take the time to look at all possible plans.
6. Make a Budget
Making a budget may be the most important thing. How are you going to support yourself? You need basics like food, clothing, healthcare, home, and the like.
Then there are the things you want — things like traveling, hobbies, club memberships.
Make sure that you can have it all.
7. Apply for Social Security Ahead of Time
Don’t wait until you’re at full retirement age to collect Social Security. You should apply at least 3 months before you want your benefits to start.
Make sure you know how to do this and that you have all the documentation.
8. Consider Rolling Over Your 401(k)
You have spent years putting money in your 401(k), and now there are some decisions to make. You can transfer money out of it to an IRA. This can increase investment options, more flexible estate planning, and offer more distribution options.
Before you move your money think about your age, current financial status, and all the costs.
Make sure to look at all your options.
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