Factors to Consider in a “Preparing for Retirement” Checklist

plan for retirement blocks next to piggy bank

Retirement planning is a process that evolves, which is why it’s so important to start strategizing in advance. While it can seem overwhelming to plan for an unknown future, it’s important to start by taking small steps.  Here are some things you should factor into your planning for retirement checklist.

How to Start Preparing for Retirement

Planning for retirement now, in your 30s, 40s, and 50s can help you determine how much money to set aside so your investments may grow into a beautiful nest egg. It can never be too early but it certainly can be too late!

Ask Yourself Some Important Questions

  1. What kind of lifestyle do I want when I retire?
    • Do I want to maintain the same lifestyle I have now, have a simpler lifestyle, or have a better lifestyle?
  2. Who will depend on me for financial support when I retire?
    • Is it just my spouse, or perhaps a sibling or even an elderly parent? Do I need to protect my loved ones with special needs?
  3. Where do I want to live?
    • In a house? In a vacation home? Assisted living? In another state? Do I want to downsize?
  4. What kind of healthcare will I need?
    • Do I eat healthy now? Will I need medical care? Do I have any chronic conditions now that may need attention later?
  5. What are my finances like now?
    • Do I have a healthy savings account? How much have I contributed to an IRA or 401(k) plan?
  6. How will I spend my time in retirement?
    • Do I plan on working? Will I rely solely on retirement income for my lifestyle?
  7. What do I want to leave behind for family/heirs?
    • Do I have an estate plan? Do I need a trust? Is my will up to date?

Cover Your Bases

First, ensure that your current finances are taken care of before you develop a strategy for retirement. Shelter, food, transportation, clothing, and healthcare are all factors to consider first.

Once you have enough money to take care of these items, it’s time to save. Start building your financial foundation by creating an emergency savings fund for at least three to six months’ worth of your current income used to offset any expenses of an unforeseen situation.

Diversify Your Portfolio

Once you have disposable income to set aside for retirement, you should consider building your portfolio.

While money markets and savings accounts are great for short-term goals, retirement is a long-term strategy. Consider diversified strategies that encompass investments such as mutual funds or ETF’s that have a history of long-term returns. For further diversification we can look at alternative investments and real estate. Working with the right professional can help determine how much you should have allocated between stocks, bonds and other asset classes!

Understanding the differences between Roth IRA accounts and 401(k) plans is important because the different options will have different tax consequences when you retire. By working with our professionals, we help educate you on which plans to take advantage of to help maximize your financial planning goals.

Be Smart and Set Aside Money for Retirement

Be smart with your preparing for retirement checklist. Whenever you have extra cash, consider incorporating it in to your financial plan for retirement. Our goal is to not just help out clients retire comfortably but practice strong financial principles that will help them build wealth over time!

Talk to Financial Planning Experts

The personalized financial planning experts at RVPII Consulting can help you plan and strategize for retirement, no matter what stage of life you’re in. We’ll treat you with integrity while giving honest, expert opinions about your retirement outlook.

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