Randy Becker Bellevue - How to Prepare Financially for Retirement

HOW TO PREPARE FINANCIALLY FOR RETIREMENT

Introduction 

Transitioning from working life to retirement takes careful financial planning and decision-making – give yourself plenty of time to prepare.Â

Ways to Prepare Financially for Retirement 

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Convert Your Savings to Income Apply for Government Benefits Pay Off Your Debts Go Beyond The Workplace Learn About Your Social Security Review your Insurance Needs Make a budget

Convert your Savings to income 

Research your income options and set up a plan so you have an income from the first day you retire. Options include RRIFs, annuities and unsheltered savings. You may want to speak with a financial advisor to help you set a plan to meet your income needs in retirement.

Apply for government benefits 

Don’t wait until the last minute to apply for government benefits – it may mean a delay in getting your payments.

For example, you need to apply for CPP 9 months before you retire in order to receive your payments in time.

Pay off your debts 

Pay off your debts as soon as you can – ideally before you retire. To help you pay debt off faster, make sure you are paying the lowest interest rate you can get.

Go Beyond The Workplace 

There are other tax-savvy ways to save for retirement, too.

Consider opening a Roth IRA, which allows for after-tax savings and tax-free withdrawals when certain conditions are met. This can help you hedge against the possibility of future tax increases, so you don't need to fret as much about taxes during retirement.

Learn About Your Social Security 

The government can help supplement your retirement income, but cannot rely it on of supporting your retirement lifestyle. SSA will cover about 40% of your pre retirement income but when you retire, and then it may be lower.

Review your Insurance Needs

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As you get older, your insurance needs will likely change. For example, if you have fewer debts and dependants, you may not need as much life insurance coverage. But you might have more health problems, so you may want to consider critical illness insurance or long-term care insurance.

Make a budget 

Figure out how much you’ll need to spend to make ends meet in retirement – then see if it matches your monthly income. If it doesn’t, you’ll need to find ways to save more, cut spending or boost your income in retirement.

Save Strategically 

Don't let market swings throw your portfolio out of whack.

Determining how to best allocate your savings between various kinds of assets including stocks, bonds and cash can be a powerful way to keep your retirement savings growing.

Who I Am‌.. 

Randy Becker Bellevue is the financial advisor and also the owner of the Becker Retirement Group who provide the essential tips how to make better financial planning for future.