I’m probably stating the obvious: your life will change, drastically, when you retire. Maybe you’re already living this truth.
Change will come in many different ways:
· structurally—the organization and cadence of your days, weeks, months even years;
· energetically—how much you have, and where you choose to devote it;
· socially—some relationships fall away, others grow, new ones may blossom unexpectedly; And of course,
· financially—sources and amounts, with many different variables at play.
Thinking about and planning for the shift in each of these areas will probably occupy your mind and attention in spurts until retirement is upon you. But the one area you must actually and methodically plan for is your post-retirement financial life.
Much like investing…the best time would be years ago, the next best time is right now. If you haven’t given much thought to your financial situation and retirement, the best thing to do is…just start.
Here are the areas you need to be planning:
· Income and Spending—You need a budget, preferably a CASH-FLOW budget.
· Savings and Investments—Do you have retirement accounts? Are they adequately funded?
· Debt—This will eat you alive when you’re actively earning, and bury you when you’re retired. Focus on reducing and eliminating as much as possible.
· Health Insurance—How’s your health? Are you adequately insured?
· Emergency Fund—Got one? Is there enough in it?
· Estate Planning—Don’t let Uncle Sam decided what happens! Get all of your documents created or updated: Will, Living Will, Health Care Proxy, etc.
This is a brief overview. More to come on each of these in detail. Good stuff to follow!