Before You Retire: 7 Things You Must Know
Category: Retirement Planning
February 25, 2020 — Retirement is a long, and potentially hazardous journey. Like any big trip, it requires a lot of advanced planning to stay safe and get the most enjoyment. So way before you hear a chorus of bon voyages, make sure you have mastered these 7 essential topics on retirement planning.
Your budget. Nobody is ready to retire until they understand what their budget looks like. Whether you use a financial planner or accountant, or do it yourself on a spreadsheet, you have to know if the input (your income) is going to match the output (what you are going to spend). The result of that exercise will help you determine answers to most of the other steps below – whether you can afford to quit working, where you’ll live, and what you will do to stay busy (travel, recreation, etc.) Whether the answer is great (you have enough to be comfortable in your desired lifestyle), or if it is not so good (serious shortfall ahead!), going through the budget exercise gives you a sound basis for decision making. This budget worksheet in csv format contains most of the items you need to consider when developing a budget.
Comments on "Before You Retire: 7 Things You Must Know"
Bruce says:
I had to smile about the budget. As we do have a budfet it seems it has been in constant flux since retirement. I retired when I was 60 and my wife continued to work sowe still had her income, the she retired at 63. Sold our home and lived in an apartment changed the budget big time. Moved and built our retirement home, adding all those expenses, window treatmets, water softner and RO, golf cart purchase, additional landscaping. Now I'm drawing my SS at 66 and next year my wife will at FRA. Just saying a budget must be flexible and able to updat and change. A great adventure so far and more active now then when we worked. So many new friends and different activities.
Jean says:
The financial items cant be overstated and surely play a big part in answering the "Are you ready to quit working?". The one item I'd leave off is "Where will you live?" Retiring qualifies as a major life event, as does moving, so why add any pressure even thinking about moving when preparing to retire? A fun thing to do after relaxing a bit ( "What will you do to stay busy" ) would be to take some scouting trips to some of the places mentioned in the "Best Places" lists. :)
Admin says:
Jean:
That is such a good point you make about the where to live question. Yes, by all means don't feel like you have to decide today where you are going to live. Finding out where to move (or if to stay) should be a process that begins well before retirement and continues until you are ready. Thanks for your insight!
Bob says:
I would add to the list that any plan to relocate includes the effects of climate change relative to temperature and any new allergens in the area. My wife and I reviewed all 7 items but did not think to consider the increasing temperatures of the new area and the fact that it was one of the top 10 for allergic reactions for pollen etc.
Steve says:
There is another key item that I think was missed on the list. Caring for elderly parents. My wife and I moved our mothers from different states, to, locally in Texas. I am 63 and my wife is 60. We are still working and plan to, for a few more years. We've been taking scouting trips for the last 4 years, trying to figure out, where we'll move to. We can make that decision, but can't leave our mothers (currently in independent and assisted living centers) until they pass.