Retirement Checklist
This situation that often arises when an individual reaches retirement, they get the gold
watch, the pats on the back, even a nice retirement party with all of your closest friends and
family. Then what? No one ever tells you what to do next.
This checklist will give you a good starting point and outline of the steps you would need to
take to become a happy and comfortable retiree.
watch, the pats on the back, even a nice retirement party with all of your closest friends and
family. Then what? No one ever tells you what to do next.
This checklist will give you a good starting point and outline of the steps you would need to
take to become a happy and comfortable retiree.
Retirement Checklist:
Check your Health Insurance Coverage:
Will you need Supplemental Health Insurance? If so, what type?
(see: Overview of Medicare & Medicare Supplements)
(see: www.Medicare.gov)
Check on your Social Security benefits:
At age 62 you are eligible for Early Retirement benefits, but it may
be beneficial to wait. (see: Understanding Social Security Retirement Benefits)
Gather and inventory your assets:
Get together all of your financial statements from your 401k,Pension,
IRA, Roth, Bank checking and savings, brokerage, mutual fund,
annuity and even your cash value life insurance policies. Total up
the cash values to determine what your total available assets to
generate income. ( see: Asset Inventory Worksheet)
Inventory and segment your expenses: (see: Expense Worksheet)
Divide your expenses into 2 categories. Category 1 are those fixed
expenses that you incur every month, these will be called your
Essential Expenses. (example: mortgage, car payment, utilities,
insurance premiums, taxes, food, medications, etc.)
Category 2 will be your Discretionary expenses. This category will
be expenses you can control and can very from month to month.
(example: travel, dining out, hobbies, gifting, etc.)
Then add the 2 categories together to calculate your monthly
income need.
Develop an Income Plan / Investment Allocation (see: Income Worksheet )
*Note: The editors RetirementTimeline.com encourage the use of a
qualified financial professional, but if you choose to venture it alone
here are some tips and ideas.
The Income Worksheet will help you match retirement sources with
expenses.
The Income for Life Model is a strategy commonly used by financial
professionals to match types of investments to when they are
needed to generate income. (watch an video explanation ) Click here to
get a personalized illustration.
Prepare or update Legal Documents:
You will want to have an updated and current Will. As well you will
want to prepare medical Power of Attorney.
(see: Importance of a Will, The Power of Attorney)
Check your Life Insurance, Do a Review:
Review why you own the insurance you own. Was it for family
protection or estate planning? If you don’t need it, you may think
about canceling it to save on expenses. Does it have cash value?
You may be able to borrow against it to generate Tax-Free Income.
(see: Insurance Review Checklist )
Discuss your need for Long-Term Care insurance:
Do you buy insurance or self insure? (see: Cost of Long Term Care),
I you do decide to buy insurance what type do you purchase and
how much coverage is best?
(see: Genworth"s Cost of Care Survey, How to purchase Long Term Care Insurance)
Review all Beneficiary accounts: (see: Beneficiary Review worksheet)
These are your Trusts, 401k, IRA, Roth, SEP, Annuities, Life
Insurance, or any account were you ever named a beneficiary
directly. Confirm that everyone is exactly who you want and at the
appropriate percentage. More importantly make sure that there is
not someone you do not want. i.e. an ex-spouse! This is perhaps
the biggest oversight that most people make after a divorce.
NOTE: You can not change your Beneficiary through your Will!
Decide where you want to retire:
If you decide to move to another city keep in mind for property
taxes and if you move to another state remember to consider state
or local income taxes, this will have an impact on the total income
needed.
Remember to take the time to have a plan whether you chose to work with an
Advisor or if you choose to handle your own retirement. Then and only then
can you truly rest and relax!
Check your Health Insurance Coverage:
Will you need Supplemental Health Insurance? If so, what type?
(see: Overview of Medicare & Medicare Supplements)
(see: www.Medicare.gov)
Check on your Social Security benefits:
At age 62 you are eligible for Early Retirement benefits, but it may
be beneficial to wait. (see: Understanding Social Security Retirement Benefits)
Gather and inventory your assets:
Get together all of your financial statements from your 401k,Pension,
IRA, Roth, Bank checking and savings, brokerage, mutual fund,
annuity and even your cash value life insurance policies. Total up
the cash values to determine what your total available assets to
generate income. ( see: Asset Inventory Worksheet)
Inventory and segment your expenses: (see: Expense Worksheet)
Divide your expenses into 2 categories. Category 1 are those fixed
expenses that you incur every month, these will be called your
Essential Expenses. (example: mortgage, car payment, utilities,
insurance premiums, taxes, food, medications, etc.)
Category 2 will be your Discretionary expenses. This category will
be expenses you can control and can very from month to month.
(example: travel, dining out, hobbies, gifting, etc.)
Then add the 2 categories together to calculate your monthly
income need.
Develop an Income Plan / Investment Allocation (see: Income Worksheet )
*Note: The editors RetirementTimeline.com encourage the use of a
qualified financial professional, but if you choose to venture it alone
here are some tips and ideas.
The Income Worksheet will help you match retirement sources with
expenses.
The Income for Life Model is a strategy commonly used by financial
professionals to match types of investments to when they are
needed to generate income. (watch an video explanation ) Click here to
get a personalized illustration.
Prepare or update Legal Documents:
You will want to have an updated and current Will. As well you will
want to prepare medical Power of Attorney.
(see: Importance of a Will, The Power of Attorney)
Check your Life Insurance, Do a Review:
Review why you own the insurance you own. Was it for family
protection or estate planning? If you don’t need it, you may think
about canceling it to save on expenses. Does it have cash value?
You may be able to borrow against it to generate Tax-Free Income.
(see: Insurance Review Checklist )
Discuss your need for Long-Term Care insurance:
Do you buy insurance or self insure? (see: Cost of Long Term Care),
I you do decide to buy insurance what type do you purchase and
how much coverage is best?
(see: Genworth"s Cost of Care Survey, How to purchase Long Term Care Insurance)
Review all Beneficiary accounts: (see: Beneficiary Review worksheet)
These are your Trusts, 401k, IRA, Roth, SEP, Annuities, Life
Insurance, or any account were you ever named a beneficiary
directly. Confirm that everyone is exactly who you want and at the
appropriate percentage. More importantly make sure that there is
not someone you do not want. i.e. an ex-spouse! This is perhaps
the biggest oversight that most people make after a divorce.
NOTE: You can not change your Beneficiary through your Will!
Decide where you want to retire:
If you decide to move to another city keep in mind for property
taxes and if you move to another state remember to consider state
or local income taxes, this will have an impact on the total income
needed.
Remember to take the time to have a plan whether you chose to work with an
Advisor or if you choose to handle your own retirement. Then and only then
can you truly rest and relax!
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