The Last Decade: 7 Crucial Actions for a Smooth Transition to Retirement
Category: Retirement Planning
May 29, 2024 – The decade leading up to retirement is crucial for laying the groundwork for a secure and fulfilling retirement. The steps you take in this phase are more important and more complex than you might realize, so spending time and effort now will have have a big payoff in the future.
1. Decide When to Quit Work
Pick a Date: Not everyone has the luxury of deciding when to retire – their employer or health does it for them. That’s why it is important to be ready ahead of time. If you are going to retire, or partially retire, plan ahead and set a target that works with your spouse and other criteria. You can always change it, but at least you have an idea to work toward.
2. Financial Planning and Budgeting
Evaluate Retirement Savings: Assess your retirement accounts, such as 401(k)s, IRAs, and other investments. Determine if your savings align with your retirement goals and adjust contributions if necessary. Which accounts will you tap for your living expenses, and in what order?
Comments on "The Last Decade: 7 Crucial Actions for a Smooth Transition to Retirement"
Admin says:
I will echo the point about Roth IRA/401(k)s. If you have substantial balances in non Roth retirement funds, looking for an opportunity to convert some of that to Roths can be a very good idea, before you have to start taking hefty RMDs.