You have been busy and working hard all your life. Have you thought about your life after you retire? Thinking about retirement can be both invigorating and stressful. True, you’ll have more time for leisure. But you also might have to deal with some challenges if you do not have the proper plans in place.
AOG Wealth Management, an asset management company servicing the Great Falls, Potomac, Reston and surrounding Northern Virginia, Maryland and Washington, DC area, offers these tips to help you get ready for your retirement:
1. CREATE A FINANCIAL PLAN.
Budgeting is an important component of planning for retirement. Look at your source(s) of income and evaluate how these sources may change and can or cannot support your life style in retirement. Include your needs and plans for your retirement. Additionally, have enough allocation for your daily expenses and leisure activities. You should also set aside some money for your emergency fund. If you’re not sure how to step through these questions, consult a professional financial planner.
2. PAY OFF ANY HIGH-INTEREST RATE LOANS.
Now and especially before you retire, pay off any high-interest rate loans you have. Don’t allow debt to grow due to high interest rates and don’t allow high-interest rate loans to follow you into retirement.
3. PRIORITIZE YOUR HEALTH.
You may have Medicare for your health insurance as you reach 65 years of age. This is commonly deductible from your Social Security fund to provide you with basic health care. Medicare also covers people under 65 years old suffering from certain disabilities such as end-stage renal disease (ESRD). For more medical benefits, you may consider getting a Medigap policy to pay for some health care costs that standard Medicare doesn’t cover, such as coinsurance and deductibles.
4. ASSESS YOUR SPENDING LEVELS WHEN IN RETIREMENT.
Use your pension and Social Security benefits as replacement for your income to pay your bills. If you need more income, then you may have to use certain assets from your portfolio. You may use earnings from your investments for your living expenses.
5. CREATE YOUR PORTFOLIO SUCCESSION PLAN.
Make sure to have your beneficiary and power of attorney documents up to date. Also make sure your will is updated. These documents should state who will make the necessary health care and financial decisions on your behalf if you are incapacitated.
Retirement planning is an important task to prep for. To help you, consult a professional financial advisor, such as AOG Wealth Management. We are committed to helping our clients achieve their financial goals through our specialized services in financial planning, retirement planning, and asset management for the Northern Virginia, Maryland and Washington DC area residents. Call us now at (866) 993-0203 to get started.