Four money moves to consider as you approach retirement

2 minute read

For most people, retirement planning is a multistep process that spans the course of your working years. To have a secure and comfortable retirement, consider taking some incremental steps to maximize your budget and income so you can live the life you want in retirement.

WATCH Your Money Map: what you should be thinking about as you age

Peter Kaldes, CEO and President of the American Society on Aging, joined Jean Chatzky on Your Money Map to discuss what you should be thinking about as you age on July 14, 2021.

Here are four steps to take to help ensure you’ll have enough money in your golden years:

1. Plan ahead. As you approach retirement, you’ll want to get a clear picture of what your nest egg, income and expenses look like. One way to prep for the future is by diversifying your financial portfolio and strategically allocating your assets across different types of investments — such as stocks, bonds and annuities. Remember that each investment type plays a specific role in a truly diversified retirement portfolio. Having protected lifetime income from an annuity is one cost-effective way to help guarantee income for life and combat risk.
2. Talk with your spouse and/or parents about savings. Talking about money for retirement can be challenging, but it’s important that you have a candid conversation with your loved ones about finances especially before a crisis occurs. Make sure you fully understand things like what funds are available, where they are located, and any penalties associated with early withdrawals. For individuals with partners, discuss how you would like to spend your retirement years, how you’ll cover your essential needs, and the income you’ll need later in life. You’ll also want to consider what you will leave behind and to whom when the time comes. This will help you develop a retirement income plan with the appropriate savings needed to maintain both of your desired lifestyle choices.

3. Decide where you want to retire. Retirement can open the door to a new way of life and is a prime opportunity for adventurous retirees to relocate to a new city. However, before leaping to a different town, state or country, it’s worth exploring the impact the choice could have on your lifestyle, family commitments and overall quality of life. Other considerations to factor in include state taxes, costs of living and the availability and access to healthcare services.

4. Find the right financial professional. There’s a common misperception that financial professionals are only for rich people, when in fact there are great professionals available in your community for every budget and financial situation. Of course, you want to make sure you feel confident in your professional’s competency, objectivity and responsiveness to your needs. Choose someone who will work closely alongside you to help create a retirement income plan that can both grow and protect your money.

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