Retirement on the horizon? 7 things to consider

Many investors are focused on the “when”, “where”, and “how much” questions when it comes to retirement. Much of financial planning is focused on these questions too. In this column, we focus on other important items to consider in the years before retirement. These strategies may make a positive difference as you embark on financial freedom and security.

Estate Planning
If you die without proper estate planning, it could create unnecessary anxiety for those left behind and needlessly waste a portion of your assets on taxes, attorney, and probate fees. Have a lawyer review your will, account titling, powers of attorney, medical directives, and beneficiary designations to make sure everything is up-to-date and appropriate for your stage in life. You want to be certain that you and your beneficiaries are properly protected. Knowing that you are prepared should provide peace of mind.

Organize Necessary Documents
Now that your documents are up-to-date, do your loved ones a favor and organize it all in one place. Conrad Siegel has developed a Personal Roadmap to help with this task. Also, sharing a duplicate set of documents with a trusted family member or attorney is a good idea. Contact your Conrad Siegel Investment Consultant or e-mail to request a copy of our Personal Roadmap document.

Health Care Insurance
Medicare begins at age 65. If you plan to retire before 65, make sure you understand your health coverage options and costs. Even after Medicare begins, some costs are not covered. For that reason, you will want to investigate Medicare supplement plans that fill in the “gaps”. The Medicare program is complex. Applying late may cause delayed benefits or increased premiums. Make sure you know the rules for your situation. You may also want to consider long-term care insurance.

Take on debt while working
As a rule of thumb, large debts should be avoided for most retirees, but there are circumstances where new debt can make sense, such as financing a new home for retirement or an RV for traveling. Why now? The loan application and qualification process will be easier while you still have earned income. You may be able to negotiate lower interest rates and better terms if you have a solid credit score and low overall debt.

Use vacation time to “test drive” retirement
Make a list of the areas you might consider moving to during retirement and use your vacation time while you are still working to visit them. If you enjoyed it in the winter, go back in the summer as well. Who knows, it might end up becoming your future home.

If you plan to move or downsize in retirement, then get your home ready now. Clear the clutter, complete the repairs, and update whatever is necessary to tip the sales process to your advantage.

Retirement planning is not a DIY project
Planning for financial independence is not a do-it-yourself project. Work with your Conrad Siegel investment consultant to make sure your financial plan is up-to-date. You have saved your whole working career for retirement, you do not want to cut corners as you approach the home stretch.