Retirement Planning

Steps to Get Ready for Retirement—or Catch Up if You’re Behind

Personally, I don’t care for the word retirement. I prefer to call the time after you finish working at your career “making a life change.” I see it as the moment you can begin living life more on the terms you have set. But will you be ready? The following list is not exhaustive, but these are action steps that will help you stay on the right track to be ready for retirement.

  1. Max out your retirement account as early in the year as possible and take advantage of catch-up provisions as soon as you are able. Then start an individual investment account to continue depositing the after-tax equivalent of your income for the rest of the year.
  2. Make sure you’re diversified and investing for growth. Don’t get too conservative too soon. A diversified mix of growth ETFs, mutual funds, and bond funds that are properly allocated towards your goals and risk level will always be important. Even after you have retired.
  3. Make a plan to pay off your debt. By accelerating debt repayment and spending less, you could find that all the interest you’ve been paying could remain in your bank account instead of going to creditors.
  4. Determine the age at which you would like to make a change in your life. If you’re not sure, don’t worry; you can always make adjustments.
  5. Decide how much money will you need on a monthly basis once you make the change. Prepare a budget for your expenses in retirement. Assess your spending needs.
  6. Total up all the sources of income you expect to have in retirement. Does the total match up to your spending needs? Do you know the lump sum you will need to generate the income you will need? And when should you begin taking Social Security?
  7. Make sure you’ve got some liquid cash for an emergency fund—just in case.
  8. Have a plan as to how and when you withdraw from your retirement and other investment accounts once you retire. This will help assure you will have enough funds to last your lifetime.

If you need help with any or all of these steps, Wilson Investment Services, LLC is here to help.