Close to Retiring? Here Are 5 Plans You Should Have in Place

Dreaming and contemplating retiring is the easy part – you imagine endless days spent on your hobbies or maybe even doing nothing at all. But as you get closer to the big day, you need to stay focused – wrong turns in your financial world can make for big and costly problems near retirement.

A Change of Perspective

Your money goals will shift as you approach retirement, so your financial planning strategies will also need to be reevaluated.

When you’re about five years away from retiring, it’s time to stop and consider moving from an accumulation of wealth mode to protecting what you’ve already built. You’ve put in the hard work and saved for decades, but how do you ensure all your assets are in place to financially support your shifting lifestyle?

Get Expert Insights

The most important thing to remember is that you don’t have to go it alone. Talking with a financial advisor about your options is one way to build confidence and alert you to any potential problems.

A financial expert can help you make decisions about when to take Social Security, how to collect your pension (if you’re lucky enough to have one) and how to protect your savings from tax implications and inflation. Long-term care costs associated with retirement can often be overwhelming, and an advisor can help ensure you have all the big questions answered well before your last day of work.

5 Plans You Should Have in Place Before You Retire

Some things shouldn’t wait until the last minute, like your retirement income plans and tax planning for your later years.

1. An Income Plan

An income plan that assures that you never run out of money. If you do not have a pension through your employer, your advisor will help you create a steady income stream.

2. A Protection Plan

A protection plan preserves your investments in the event of a chronic illness, death of a spouse or any other unpredictable event that can have a catastrophic impact on your retirement savings and goals.

3. A Growth Plan

A growth plan reduces portfolio risk and is a hedge against inflation should the market experience one of those cyclical downturns while you’re making withdrawals.

4. A Tax Plan

A tax plan efficiently protects your hard-earned nest egg from encroaching taxes. Most people think their taxes will be lower in retirement but that may not be true. Your advisor can guide you in how and when to withdraw from your investment accounts with a proper strategy to preserve assets.

5. An Estate Plan

An estate plan should include leaving a legacy for your family, gifts to charities and friends. Don’t forget to regularly review your plan and beneficiaries. Doing this will protect your loved ones from having to make tough decisions during the difficult time after your death.

With these five retirement plans in place, you’ll be set to transition into retirement smoothly and with less stress.

Plan Your Future with Clarity

Clarity Wealth has years of expertise in financial and retirement planning. Whenever you’re ready to put your retirement plans in place, we’ll be by your side every step of the way. Click here to connect with a member of the Clarity team today.

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