Broker Check

10 Questions to consider as you near retirement

  1. How much do you need to live on every month? (look at your current budget, adjust for living in retirement. Make sure there is a cushion for unexpected expenses like home repair, car maintenance, taxes, illness)
  1. How long do you think you will live? Think about your health now, how long your grandparents lived.
  1. How many assets have you set aside for retirement?
  1. Will the math work? ( the below equation is only the starting point) 

Total retirement assets /Annual required income = Years living in retirement 

  1. Miscellaneous factors that will affect your budget: Inflation, the rising cost of health care, Rising cost of health insurance. Could housing cost, income taxes increase over time? How will a larger illness affect your budget? Have you figured recreational activities and travel into your budget? If you want to leave an inheritance to the next generation, have you planned for or budgeted for that?
  1. How does Social Security fit into this picture?
  1. If there is a considerable gap in your assets and your cash flow needs in retirement, how are you going to bridge that gap? Will you work longer? Will you find ways to tighten your budget? Will you downsize your home or rent a piece of your home for income?
  1. Do you have planning in place to protect the retirement years:  if you or your spouse become ill before or after you retire? Will your spouse be able to afford to live if you die early, or vice versa? What if you need 3-5 years of home health care or even nursing home care?
  1. Do you have updated your legal documents …wills, revocable trusts, powers of attorney, health care directives?
  1. Are you leaving behind a planned inheritance or legacy, charitable gifts, etc.?