Financial Advice for Those Soon-to-Retire

Before beginning retirement fun, get your finances in order.

Soon-to-retire individuals may already have visions of long afternoons working in the garden, taking trips to Europe or baking with their grandchildren as retirement approaches. Crowded elevators, boring business meetings and working overtime will soon be relegated to the distant past, but for now, there's still financial planning to be done. Financial advice can help soon-to-retire individuals prepare for the life they've envisioned without undue worry or stress about how to pay for it.

Company Investments

Some employees work for companies offering 401(k)s or other retirement funds. Paying into these accounts often results in employers making matching payments, so this can be an effective way to sock away money for retirement. Max out your allowable contributions to make the most of this financial option.

Budget Tracking

Tracking your budget over the course of several months before retirement is sound financial advice for soon-to-retire individuals. Understanding your cash flow, including any remaining mortgage payments, health insurance bills, income from rental properties or business dividends, will help you establish a retirement budget. Some expenses, like transportation, may drop if you're no longer making lengthy commutes to work. Other budget categories, such as entertainment, may rise slightly if you're planning additional road trips or dinners out.

Financial Planning

If you're nearing retirement, hopefully you've already developed and implemented financial plans to provide you years of relaxation without undue money worries. Still, there's no harm in visiting with a professional financial planner as retirement looms for any last-minute adjustments to retirement accounts, savings accounts or estate planning instruments. They may have some final suggestions to steer you toward those final steps into financial security upon retiring, or advice that might save you money on taxes. If you haven't worked with financial planners before, choose someone who is experienced in working with people in your income bracket, with seniors, or with people planning for retirement. Don't automatically take any advice received; however, take time to research and weigh options to determine if they're right for your particular situation.

Delaying

No one, especially soon-to-retire folks, wants to hear the news that retirement must be delayed for financial reasons. But in challenging economic environments, it could be that your savings and investments took such a hit that postponing retirement is the smartest financial option to secure future stability. If you've declared bankruptcy, retiring won't be impossible but may require some austerity measures, taking on another job prior to retirement and extending your career by several years. If delaying retirement just doesn't seem like an option, consider adopting lower quality-of-life expectations or redefining retirement to include some part-time work.

References

• Free Money Finance: Five Savings Tips for Soon-to-Be Retirees
• Smart Money: Retirement Planning for the Bankrupt Boomer
• USA Today: Boomers' Eagerness to Retire Could Cost Them
• Elderly Care: Financial Planning Helps Seniors Fund Their Retirement Using Investments
• Financial-Advisers: Looking to Retire Soon