Top five ways to prepare for retirement

Top five ways to prepare for retirement

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Getting ready to retire soon? Well, even if you’re not it’s never too early to start planning for it. In fact, there are many things to consider for retirement and failing to plan accordingly can make your golden year feel rather blue. Of course, as you get closer to retirement, the way you prepare will be different than if you have several decades still to go before you hang up your work pants for good. But for those who are just a few years away from calling it quits here are the top five things to take care of during the five years before you retire.

Start Living With a Tighter Budget

The first thing you need to do when preparing for retirement is trying to live under the same budget you will be living under when you actually retire. That means you will likely have to get used to living on a smaller amount. If you find the new budget to be too restricting for your lifestyle then you know you’ll need to adjust your retirement plans and either change your lifestyle or perhaps delay retirement and save some more.

Maximize Your Retirement Savings

While most people who have worked for many years have already started some sort of retirement savings account, not everyone always contributes the maximum yearly amount to those accounts. So, during the last five years before you retire make sure you start contributing the maximum allowable amount so you can take full advantage of your retirement savings.

Spend Some Time With a Financial Advisor

One of the best things you can do is to meet with a financial advisor, especially if you aren’t sure how you should withdraw money from your retirement accounts. A good financial advisor will explain all your options and help you choose the right way to prepare for your retirement expenses.

Make Home Improvements

If you own a home and you plan on staying in that home during retirement then now is the time to take care of any major repairs or remodels. For example, any major expenses, like installing a new roof, purchasing new appliances or remodeling a kitchen or bathroom should be taken care of before you retire, because you might not have sufficient funds after you retire. If you plan on moving, this will also help increase the value of your home, which will bring a greater return.

Pay Off Your Major Debts

Finally, when you get closer to retirement it’s ideal to have as little debt as possible. This will make budgeting your new income much easier. That means if you still have a mortgage then you should do all that you can to pay it off. If you need to start making extra mortgage payments then the last five years before you retire is the time to start doing it. The same goes for any outstanding car payments or any other large debts. The more you get paid off before you retire, the more you’ll have to use for other things when you call it quits, REPORTS INTERNET.

 

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