Once you reach your 60s, you might feel as though you've finished running a financial marathon. Your nest egg has grown to a comfortable size, and you're anxiously eyeing your expected retirement date.
Does this mean you're finished setting and meeting financial goals? No, not really. The hardest part is probably behind you, but you should still strive to meet these financial goals at some point before you turn 70.
Review your retirement fund. You've worked hard to accumulate a sizable nest egg. Now it's time to find out exactly what you can expect from your retirement fund. Give us a call to discuss your expected annual distributions, your estimated retirement budget, and what you can expect from other forms of income like Social Security. After you've focused on saving a large sum for the past few decades, now it's time to focus on your expectations for retirement. This will allow you to make necessary adjustments before you actually retire.
Make a decision about Social Security. You will claim your full scheduled Social Security benefits at your “full retirement age” (between 65 and 67, depending upon your birth date). However, you can also claim your benefits as early as age 62, if you're willing to accept smaller checks, or you can earn a larger benefit by waiting a few more years. There is no advantage to waiting beyond age 70, though. During your consultation, we can help you decide upon the best time to claim your Social Security benefits.
Decide where you want to live in retirement. For some, selling the family home is an emotional decision. For others, it is a purely financial dilemma. Do you need such a large home in retirement? Can you afford the upkeep? Do you need to tap into your equity? Would you prefer to move to a different location? These are questions you should ask yourself as your retirement date approaches, because you might have a considerable amount of money tied up in your home.
Estimate your future income taxes. Don't make the mistake of assuming that your income taxes will remain the same in retirement. Depending upon the type of retirement account you hold, your distributions might be taxed differently than you expect.
Choose your health care plans carefully. You already know that you will become eligible for Medicare at age 65. But which plan will you choose? Do you need a supplemental plan to help cover your out-of-pocket expenses? What about long-term nursing care insurance? Did you know that Medicare often does not cover long-term care? Investigate these issues now, so that you can put a plan into place before you encounter high medical expenses.
Review your will. Your final wishes might have changed since you drafted your will, or you might need to update your beneficiaries. In fact, you should review this document every year or two.
Take a look at your life insurance policy. You chose your policy based upon your finances and family size. Does it still reflect your needs? Schedule a review with us, and we can help you update your life insurance policy to one that better suits you in this new phase of your life.
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Carstens Financial Group focuses on providing comprehensive asset management, estate planning and life insurance solutions. Allow us to help you secure your financial future.