The first step is to assess your savings now and what it will be when you actually retire. If for example, you have $400,000 saved and feel that this is a huge nest egg, is it enough? Using the standard 4% rule, your income would only be $16,000 a year. Can you live on that? What other sources of income will you have? Add these up and assess whether it is enough to live the live you would like during retirement.
The next item on our list of things to do before you retire is to develop a budget. You have already determined what your income will be. Now how will your expenses change. If you have plans for your retirement, don’t forget to factor these in. Upgrades to the house, travel plans etc. should be considered in addition to all of the usual expenses. Don’t forget major maintenance projects for your home. Will you need a new roof in five years? How about the furnace or AC units? These major expenses along with any others should be factored in.
As we age, health care and nursing home care can make a substantial impact on your budget. Do you have health care coverage? How will you pay for medications and other medical equipment you may need. Know and understand what the costs will be.
The amount of social security you receive depends on two major factors. The first is how long you have worked before retiring and how much you made. The second factor is when you start collecting social security. The earlier you claim, the less you will receive. If you can wait longer to claim security, your income will be higher. Factor this plan into your budget plans.
Many people mention they will have more time to golf, to pursue their favorite passions, travel and take on various maintenance projects. Will this be enough? Remember that your going to have between 8 to 10 more hours a day to fill taking into account commuting time. Take a moment to think about what you may do in retirement. It could even include going back to work, part time work, or even volunteering.
Good luck in your retirement and we hope these things to do before you retire will help you in your own retirement.
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