Your Ultimate Retirement Plan Financial Checklist
Do you think you’re financially ready for retirement? Browse through our list of things to do in order to secure your future now!
Build Up Your Emergency Fund Savings Account
True to its name, an emergency fund is most useful in times of crisis! Make sure that you have at least three months’ worth of earnings stored ahead in your savings account as a backup. Debts and other extra expenses cannot always be covered by credit. There will also be times when insurance or your Social Security will not be given on time. Therefore, it is a wise practice to have extra cash on you always.
Make A Retirement Budget
One of the easiest yet most essential steps to being financially prepared for retirement is through evaluating your retirement budget. You should not only start calculating your current expenses and savings but also take into account the shift in money that comes with your retirement. People always seem to forget that retirement still comes with personal costs to a certain degree, despite the lack of income.
Determine Your Health Insurance Options
If you are planning for early retirement, health insurance expenses can become costly. It starts when you turn 65 years old and will only cover an estimated half of your entire health care expenditures. In the end, it is better to start considering better options and deals for insurance companies. Also, try to factor in other ways that will help you cover medical costs outside of your health care plan.
Learn How Retirement Income Is Taxed
Much like anything else nowadays, even your retirement income will be taxed! If you have not considered this yet then start making better adjustments to your retirement plans. This is one of the most common mistakes that eager or new retirees are not aware of, even though this clearly has a big control over your different sources of retirement income. Remember that financial knowledge is a great investment!
Make A Retirement Income Timeline
It is essential to plot an income timeline so that you can track how much of it will go to your retirement savings and also to assess the expenses that come with it. This way, you’ll handle your cash flow better.
Run Scenarios Using Online Retirement Calculators
This helpful tool allows you to assess your plan by being able to project how long your cash will last when you factor in inflation rates, income, investment planning, and even your date of retirement!
Use A Social Security Calculator Before You Claim Benefits
Make sure that you have done your research on Social Security benefits before starting to get benefits! If you are not confident on your own, you may seek help from a financial advisor or perhaps use a Social Security calculator.
Read Up On The Best Retirement Investments
Discover what investment choices work to your advantage as you retire. Does the benefit outweigh the cost? Will it give you your money’s worth? Will it be able to provide a steady retirement income to you? These are just some pressing questions to consider!
Make An Investment Plan
Investment planning enables you to make better choices for your retirement plans. It helps determine your direction, your money’s trajectory, and most importantly, what investments work best for you.
Read At Least One Book On Retirement Planning
While it is okay to ask for help from financial advisors and other people, it is much better if you know the golden rules on retirement. As early as now, start reading up and noting useful information down the road!
Based on materials from thebalance.com