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Nearing Retirement -
Ten Essential Tips
- Ramp it up. Pump up your retirement saving by increasing your
contribution to your 401(k). New contribution limits let you stash more
dollars in your qualified plan than ever before.
- Save automatically. Consider setting up automatic deposits to
a mutual fund or IRA. (Such a plan does not guarantee profits or protect
against loss in declining markets.) When you get a raise, consider
directing all or part of it to your retirement savings
- Check your strategy. What will be the right investment mix
for you once you are retired? What is your current investment mix? Take
advantage of this opportunity to rethink your investment strategy.
- Get covered. Review your life insurance coverage and consider
long-term care protection. While it may seem an impossibly long way off
now, preparing now could save you thousands later and give you the
ability to choose your own care.
- Be a little selfish. Many people who are nearing retirement
are also paying for their children's college educations. Remember how
the flight attendant tells you to put on your own oxygen mask before
helping others?
- Don't let a job change pull you off course. If a great career
opportunity comes along, take review every how changing employers may
affect your future. Depending on your situation, consider getting
professional advice as you weigh your options.
- Investigating your options. Determine the impact of early
retirement on your retirement benefits from your employer's plan. Learn
the difference between taking a lump sum payout and income for life.
This is another situation where you may want professional advice.
- Think ahead. Start thinking about your estate before you
retire. Under new laws the estate tax was repealed, but if it isn't
reinstated after 2010 and your estate is large enough, your family may
have to pay taxes. Consider ways to structure your retirement income to
benefit your estate.
- Consider the effect of taxes. Look for tax-deferred and
tax-exempt investment opportunities. Take advantage of the provisions of
the recent tax reform legislation that apply to your situation.
- Stay the course. Don't let a new car or a vacation lure you
off course. Make your retirement a priority now, and you'll have more
money to spend on all the things you want in life later.
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Planning for Retirement |
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Survey shows
1/3 of baby boomers plan
to work past retirement
Find out what your Social Security Benefits will be when
you retire.
The new retirement communities taking shape are
far different from their predecessors. They are geared to fitness and
computer addicts. Shuffleboard is out. Jogging paths and home offices
wired for telecomputing are in. |
