Fine-tuning Your Retirement Preparations

Is retirement within sight? As you get closer to retirement, your thoughts may turn to the day when you’ll finally be able to slow down and relax. But during the time that remains, take the opportunity to do all you can to ease your transition.

Talk over expectations

If you’re married, discuss how you each view retirement and share what you hope to get out of your retirement years. You can coordinate your plans by going over details such as when you’d prefer to retire, what activities you’d like to do and where you want to live. And since your viewpoints may evolve, you’ll want to keep the conversation going on topics that will affect each other.

Make a retirement budget

With your outlook in focus, you may now be able to better prepare a budget for retirement. A good place to start is with your current budget. You can adjust it for work-related expenses you won’t have in retirement, such as commuting costs and retirement plan contributions, as well as potential new costs, such as higher health care expenses. Then estimate your future retirement income from all sources, including your retirement investments. By comparing your expected expenses with your future retirement income, you’ll have a better understanding of your cash flow needs.

Review your investments

Your retirement years may be a time when you gradually take money from your retirement account instead of adding to it. In preparation, you may want to reassess the investments in your portfolio to help ensure they’re suitable for your situation and make adjustments as needed.

Assistance is available

As your retirement draws nearer, you can review your goals with your financial professional and discuss how you would prefer to manage your finances. By looking ahead, you can identify any additional steps you may need to take to get ready for your retirement years.