Top Wealth Builders for the Retirement Homestretch, Ep #94

Many of you are inching closer to retirement and the decisions you make now with these wealth builders will have a big impact on your retirement lifestyle. It’s time to start thinking ahead and consider your retirement strategy. This is why we have created a pre-retirement checklist with 8 key areas to maximize your wealth as you’re inching closer to retirement. Listen in now to discover what you need to think about now that you are rounding the final stretch in this race to retirement.

Top Wealth Builders for the Retirement Homestretch

  1. How will you spend your time in retirement? Explore what you might enjoy doing and give it some practice. Try to structure a calendar of your average week.
    • How might you allocate your time?
    • How will you challenge yourself?
    • What new skills will you learn?
    • Try taking a trial run with an extended vacation of what retirement could look like prior to actual retirement.
  2. How will your income change?
    • What will it take for you to retire?
    • How much will you need and where will that money come from?
    • Most people have a combination of 6 sources of income to provide for their retirement which includes: social security, pensions, deferred compensation, withdrawing from savings, part-time work, and passive income.
  3. What will your retirement lifestyle be like? The more you spend the more income you’ll need and the less you spend the less income you’ll need. Think about how much you plan to spend and how will you spend it. Do you have a way to track actual spending? Awareness can unveil valuable insights that you’ll need to be aware of as you gain more freedom with your time.
  4. What is your current net worth? In retirement, your accounts will no longer grow and they may start to fall in value. Take an inventory of what accounts you have.
    • Are they pre-tax or post-tax?
    • Do you have an HSA?
    • Brokerage accounts?
    • Annuities?
    • Where do you stand financially?
    • Lay it all out on paper so that you can decide what you need to do next.
  5. Tax diversification is as important as investment diversification in retirement.
    • How tax-efficient are your savings?
    • A 401K conversion is a great way to save in taxes.
    • You should also consider what your tax bracket will be in retirement.
  6. What is your investment strategy?
    • How do your emotions play a role in investing?
    • What is your risk capacity?
    • What is your risk tolerance?
    • You will need to understand when and how much you will need from your investments and have the appropriate asset allocation. Know what your expected returns will be. This will help you understand how long your portfolio will last you.
  7. Healthcare can be the deciding factor for how and when you retire. If you are planning to retire before the age of 65 you’ll want to factor in healthcare costs.
    • How will you bridge the gap until Medicare kicks in?
    • Will you take COBRA or use your state’s health insurance exchange?
    • You should also consider whether you want to get long-term care insurance.
  8. Do an annual review of your estate. Block off some time each year to check if your estate plan still reflects your wishes.

Are you in your catch-up years?

Your 50’s are often referred to as the catch-up years when it comes to retirement planning. There are lots of opportunities to think about as you approach retirement. Successful retirees look at all of these considerations as they make decisions. The decisions you make now can have a major impact on your retirement lifestyle. Use this pre-retirement checklist to help you begin to plan your retirement strategy.

Outline of This Episode

  • [2:27] Are you on the final stretch to retirement?
  • [6:33] How will you spend your time in retirement?
  • [7:37] Which income sources will you have?
  • [11:35] What is your net worth?
  • [14:24] Do you have an investment strategy?
  • [20:11] Which kind of insurance do you have?
  • [23:45] Do an estate review

Resources & People Mentioned

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