A large portion of baby boomers are in the ten-year range that seems to matter the most when it comes to retirement.
According to Reid Abedeen, managing partner at Safeguard Investment Advisory Group in Corona, California, the five years before you retire and five years after you retire are the most important in ensuring you have the retirement you desire.
If you are careful with your planning in the immediate years leading up to retirement, then it’s more likely you won’t have to make drastic changes to your plans or be caught off guard with unpleasant surprises. Once you retire, you should conduct yearly assessments. After the first year of retirement is a perfect time to thoroughly examine what you’ve been doing – right and wrong – and make any necessary adjustments to keep yourself on track. An article from U.S. News recommends considering these six things:
- Determine what’s working, what’s not and what needs to be changed. This includes your investment strategy (markets change), budget and lifestyle.
- Meet with a financial advisor. Most people benefit from having a financial advisor – someone who will be honest and can assist you with a budget.
- Examine your spending patterns. Look at your last 12 months of bank statements to determine what you are actually spending each month. This will help you determine if your savings will last the rest of your life.
- Consider lifestyle changes. Finances aren’t the only thing that may need adjustment. Some people don’t enjoy all the free time – they need more of a purpose. Consider your options, such as volunteering or returning to work, to maintain social interaction and mental stimulation.
- Correct financial mistakes or miscalculations. Maybe you were overgenerous with gifts in the first year, not realizing you’re barely getting by. Making these corrections after year one will help keep you on track. Also keep in mind that investment results will not be the same every year – if you’re up by 5 percent, it doesn’t mean you should spend 5 percent more.
- Figure out a Social Security strategy. Having the correct Social Security strategy is extremely important. Consider your age, marital status, and other sources of income.