As retirement draws near, it becomes more important for individuals to carefully consider their financial plans in order to assure a smooth transition into their post-employment years. The foremost step in this process is to make sure you have a stable income plan so that you will not run out of money in retirement. Next, have a protection plan in place. Long-term care costs or sudden illnesses can decimate retirement goals. Also, institute a growth plan. While in or near retirement, most planners suggest shifting portfolio assets to focus more on protecting, rather than growing, accumulated wealth. Once you have your needs accounted for though, a prudent retiree might benefit from setting aside a certain portion of income to work as a hedge against inflation. Having a solid tax plan is another important step to ensuring a successful retirement. Without appropriate strategies in place, taxes can continually diminish investments and retirement savings. Finally, make sure you have an estate plan. If you want loved ones and friends to be taken care of after death, it is vital that your desires are properly documented.
See Chris Harlow, Near Retirement? 5 Plans You MUST Have in Place, Kiplinger, May 2017.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.
