Hello everyone, this is Roger Brooks with Strategic Investment Management. Today’s video is for anyone planning to retire next year.
First of all, congratulations! Being so close to retirement is an exciting milestone. But before you hang up your work hat for good, here are six key steps you’ll want to take.
1. Know Your Retirement Income Sources
First, take inventory of where your retirement income will come from. This includes Social Security, pensions, investment accounts, and any other income streams you’ve built over the years.
2. Review Your Withdrawal Strategy
Next, make sure you have a plan for how and when to start taking withdrawals from your accounts. This strategy can impact your taxes, investments, and even how long your money lasts. A financial professional can help you structure withdrawals in a way that minimizes taxes and helps your portfolio support you through every stage of retirement.
3. Understand Your Healthcare Options
Healthcare is often one of the most significant expenses in retirement. If you’re 65 or older, evaluate your Medicare options. If you’re retiring before 65, you’ll want to explore coverage through your employer, a private plan, or the Health Insurance Marketplace until you’re eligible for Medicare.
4. Revisit Your Budget and Lifestyle Plans
Your retirement budget should reflect how you actually want to live, beyond just covering the bills. Think about travel, hobbies, and how you plan to spend your time. A clear budget helps you see whether your income plan can support your ideal lifestyle, or if you need to make adjustments before you retire.
5. Plan for Tax Changes
Taxes don’t go away in retirement. In some cases, they can be even more complex. A smart tax strategy can help you keep more of what you earn. Your strategy might include timing your Social Security benefits, strategically drawing from taxable and tax-deferred accounts, or planning Roth conversions when it makes sense.
6. Test-Drive Your Retirement
Before you officially retire, try living on your expected income for a few months. This “practice run” helps you see if your plan feels comfortable or if you need to make adjustments while you’re still working.
At Strategic Investment Management, we help clients make confident decisions in the final stretch before retirement. Our fiduciary approach focuses on supporting your goals, your values, and the long-term sustainability of your plan.
Want help from one of our experienced professionals? Reach out to schedule a conversation. Let’s make sure you’re ready to retire next year.