At last, you’re almost close to enjoying your retirement. Approaching your retirement age is an exciting and also nerve-wracking phase in your life as the things you’ve been doing all your life come to a close and the lifestyle you envision starts knocking at your door. Yet the closer you get there, the more important it becomes to make wise and cautious adjustments so you can still reach that financial security you need and to achieve for you to enjoy your retirement life to the fullest. So before you even get there, we are here to give you some practical steps on how you can fine-tune your retirement financial planning strategies before you even transition into the new chapter in your life.
Assess your current savings and income sources. By adjusting your financial goals, it means that you need to look into your current retirement fund accounts to check if you are still in alignment with your goals or if your savings will fall short. Before this happens, it’s good to consolidate your multiple investment accounts so you can also reduce the potential transfer fees and keep the rest for your retirement.
Review your investment strategy. Do you think your investment strategy still works when you first thought about it? Maybe this is the time to review it so you can assess if you are still going for a high-risk, high-reward investment policy or a low-risk, steady one, especially as you are approaching the time for when you need it most.
Reevaluate your financial goals. Remember that your financial goals evolve over time, especially if your priorities adjust as you age. This is also a good reminder of asking yourself once in a while what you really want so your savings can adjust realistically.
Consider health and long-term care needs. So to be sure that regardless of what will happen in your retirement years, and still live comfortably, invest in long-term care insurances as well. Whether you are thinking of assisted living or nursing care or just to keep yourself safe from the stresses of your healthcare expenses in the future, this will keep you at ease and will give your family peace of mind.
Develop a withdrawal strategy. Your financial advisor will help you best in this strategy, because we won’t ever know which expenses you will be needing early on in your retirement years. Expect that your funds will get depleted, but at least it’s not because of penalties or any unexpected fees just because you withdrew some of your savings early on.
Keep an emergency fund.And of course, having a cash reserve is a wise way to keep yourself covered even when unexpected expenses arise. When it comes to saving up, cutting down on your insurance costs is never the option. It is important that when you retire, you have a lot of contingency savings—enough or less than what you wanted. You’ve worked so hard, so give yourself the freedom to enjoy your life too.