5 Essential Steps to Take While Nearing Retirement

 
 

Curtis has earned the Life and Health Insurance licensure, has passed the Series 66 examination, and has earned a degree from the University of Nevada, Reno. He has over 20 years of experience in the financial industry, helping others protect, grow and manage their wealth. Curtis helps clients create customized strategies for their portfolios based on their unique financial goals.

 
 

FIVE ESSENTIAL STEPS TO TAKE WHILE NEARING RETIREMENT

One of, if not the biggest financial life changes, we can go through is retiring and stepping away from that income and resource that you have been living with for the last 20,30,40 even 50 years.  So, what are some essential steps to make sure you take while nearing retirement? Let’s look at 5 essential steps to take before setting off on that new chapter in life.

 

CREATE A BUDGET

The first step I think is essential to any person nearing retirement is to create a budget.  Remember, retirement is essentially 30 or so years of unemployment, so one of the most important questions is how much you will need to live on for either a monthly or annual basis.  You can even break it down to needs and wants if you desire, but having that number is paramount to being prepared for retirement.  If you don’t know that number, how do you know if it is safe to retire, or if you have the means to have the retirement you desire.

INVESTMENT RISK

Second, look at the risk you have in your investments.  Your savings and investments are part of that two-legged or three-legged stool that will be necessary for your retirement lifestyle.  Not knowing the risk, you have in your portfolio can lead to disaster if you don’t know or understand your risk.  Think back to the crash of 2008, how many people ended up having to go back to work, or delay retirement because of the losses in their portfolio.  You may not be able to avoid loss, but you want to be able to mitigate risk.  It is essential you are not taking more risk than you can afford as you head towards retirement.

TAX LIABILITY

The third thing to look at is what will your tax liability be in retirement?  What type of income and accounts do you have that will determine your tax liability in retirement?  What is your plan to mitigate that tax burden and how are you positioned from a tax perspective to take income.  Make sure you are looking at your overall tax plan is another important component to consider while nearing retirement.

 

HEALTH CARE

Fourth, what is your health care plan?  Will you be on Medicare?  What supplements should you use? What is your plan with Long Term Care?  Is Long Term Care a concern to you and your family?  Taking the steps to understand your health care plan as you near retirement is important, because sadly as we all know the older you get it seems to be the more health issues you run into.

LEGACY PLANNING

That fifth essential step would be to look at your legacy plan.  As you are near retirement, do you have a Living Trust? Do you need a Living Trust?  Are the beneficiaries in your accounts set up properly? Making sure you understand your legacy plan is another essential step to take while nearing retirement.

WHERE TO GO FROM HERE

In conclusion, the five essential steps I have outlined above are five key components to understanding and creating your plan for retirement.  Everyone has a different plan, and every family has different needs and desires, but understanding how you tackle these five items prior to retiring will help you feel more confident by having a plan in place as you start the retirement chapter in your life..  As always, seeking the help of your financial and legal professionals may help you to develop that plan or provide insight to not missing any of these five essential components. If you would like to discuss your options, please reach out to our team at Cornerstone to schedule a meeting. Call us today at 775.853.9033 or click here if you’d like to see how one of our financial advisors could help you. 

Based in Reno, NV, Cornerstone is for individuals and families looking to grow wealth, protect and preserve their life savings, and plan for the distribution of their estate in a tax-efficient manner through a tailored strategy. Schedule a time to discuss your financial goals with us.

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