Retirement is one of the most important life events you will experience, and getting it right takes wise planning. With a sound intellectual framework and some assistance from a qualified professional, you can ensure that you are ready to retire when the day comes.<\/p>\n\n\n\n
Retirement preparation can be broken down into five phases, with each phase having its own unique strategy. Regardless of which phase you currently fit into, make sure you have completed the tasks in the previous category before moving on to the next. Here are the key aspects to carry out during the five phases of retirement.<\/p>\n\n\n\n
Many people skip this step because retirement seems so far away, and with bills, a mortgage, and kids, saving for this distant period of life seems less important. However, the first step is usually the most important in any strategy, and retirement planning is certainly no exception. <\/p>\n\n\n\n
When you\u2019re 30 years away from your planned commencement of retirement, you want to make sure you have some tax-advantaged accounts open and you\u2019re contributing money to them annually. If your employer offers a company match, that\u2019s a 100% return on your contributions. You\u2019ll want to contribute the maximum to that account. An IRA will allow you to save even more every year, and it offers tax breaks like an employer\u2019s plan. <\/p>\n\n\n\n
When you get to your 20-year milestone, be sure to review your retirement accounts and verify that you\u2019re saving enough each month. You\u2019ll want to figure the amount you\u2019ll need when retirement starts and then calculate how much you need to save each month to reach that level. A financial professional comes in handy here. <\/p>\n\n\n\n
This phase is also a good time to start looking over other financial vehicles that could be of use during retirement. These include life insurance, disability insurance, and long-term care insurance. <\/p>\n\n\n\n
When you get to this phase, it\u2019s time to consider catch-up contributions. These are additional retirement account contributions the IRS allows (starting at age 50). As with regular contributions, catch-up funds receive special tax treatment.<\/p>\n\n\n\n
With a qualified estate lawyer or financial planner, you should draw up an estate plan, which will include a last will and testament. To circumvent probate, you can open transfer-on-death brokerage accounts and payable-on-death bank accounts. <\/p>\n\n\n\n
Phase three is also a good time to review your tax situation as it pertains to retirement planning. If you started saving money in the first stage with a traditional account, but now you\u2019re making more money and you think you\u2019ll continue making more money during retirement, you may want to consider switching to a Roth account, which allows for tax-free withdrawals.<\/p>\n\n\n\n
In the fourth phase, you need to begin thinking about what you want out of retirement. It can help to create a list of your requirements and preferences. Requirements are \u201cmust-haves,\u201d like monthly income for living comfortably. Preferences are aspirations that you would like to achieve but are lower on the list of priorities. This might include major vacations, building education savings accounts for grandchildren, or moving to a warmer climate.<\/p>\n\n\n\n
When you are 1 year from retirement, you\u2019ll want to review your current plan and make sure everything is ready. Do you have health insurance? If you\u2019re going to lose health insurance from your employer, you\u2019ll need to make sure you have signed up for Medicare or have some other alternative. <\/p>\n\n\n\n
Do you have enough savings in your retirement accounts? If not, consider delaying retirement for another year or two. While this may not be an ideal choice, it may be a way around an otherwise difficult problem. <\/p>\n\n\n\n
On a personal level, what will you do with your time in retirement? Now is a good time to take a look at how you might expand on your hobbies, interests, recreation, and charitable endeavors. <\/p>\n\n\n\n
From beginning to end, the tax, legal, and financial aspects of retirement planning are complicated for just about anyone. If you need any assistance along the way, please contact us to see how we can help.<\/p>\n","protected":false},"excerpt":{"rendered":"
Retirement is one of the most important life events you will experience, and getting it right takes wise planning. With a sound intellectual framework and some assistance from a qualified professional, you can ensure that you are ready to retire when the day comes. Retirement preparation can be broken down into five phases, with each […]<\/p>\n","protected":false},"author":2,"featured_media":360,"menu_order":0,"comment_status":"closed","ping_status":"open","template":"","meta":{"post_statement":"","post_description":"","post_cta":"","post_button":"Read More","post_button_url":"","compliance_id":"","post_disclaimer":"","footnotes":""},"categories":[],"tags":[],"_links":{"self":[{"href":"https:\/\/www.holosiw.com\/wp-json\/wp\/v2\/oi_article\/359"}],"collection":[{"href":"https:\/\/www.holosiw.com\/wp-json\/wp\/v2\/oi_article"}],"about":[{"href":"https:\/\/www.holosiw.com\/wp-json\/wp\/v2\/types\/oi_article"}],"author":[{"embeddable":true,"href":"https:\/\/www.holosiw.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.holosiw.com\/wp-json\/wp\/v2\/comments?post=359"}],"version-history":[{"count":0,"href":"https:\/\/www.holosiw.com\/wp-json\/wp\/v2\/oi_article\/359\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.holosiw.com\/wp-json\/wp\/v2\/media\/360"}],"wp:attachment":[{"href":"https:\/\/www.holosiw.com\/wp-json\/wp\/v2\/media?parent=359"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.holosiw.com\/wp-json\/wp\/v2\/categories?post=359"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.holosiw.com\/wp-json\/wp\/v2\/tags?post=359"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}