Retirement Planning Services

Top Ten Things To Consider Before Retiring

Here's what to consider now if retirement is on your horizon.

  1. Decide how you are going to spend your time.  What are you going to do during the first 6 to 12 months in retirement, and what do you plan to do for the rest of your retired life?
  2. Determine (realistically) how much money you will spend monthly.  Remember to include periodic expenditures such as gifts, vacations, taxes, an occasional new car, and emergencies.
  3. Anticipate the cost of health care.  You'll have no employer to pay this for you.  Medicare, MediGap, and private insurance are all up to you.
  4. Buy long-term care insurance.  Now.
  5. Refinance your mortgage.  Consider refinancing your mortgage to take advantage of lower interest rates and to decrease your monthly cost.
  6. Boost your cash reserves.  Make sure your rainy day fund is enough to cover at least six months of expenses.
  7. Evalute your sources of income.  You have already figured out what you'll spend on a monthly basis.  Now figure out where that money will come from.
  8. Revise your investment strategy.  The way you've handled your investments over the past 30 years is not how you should handle them for the next 30.  While preparing for retirement, you were focused on asset accumulation.  When you're in retirement, you need to focus on income and on keeping pace with the increasing cost of living.  Assets must be flexible and liquid so you can meet needs you did not anticipate.  New words will enter your vocabulary: rollovers and lump sums.
  9. Review your estate plan.  Review your will and trust.  Don't have them? Get them.  These documents can protect you and your assets while you are alive and benefit your spouse and children when you pass on.
  10. Perhaps the most important thing of all.  If you are not excited about retirement, then don't.  Many people quickly become bored after retiring.  It's OK -- even exciting-- to return to school or the workplace.  Many do this, often in completely new fields.


*All Investing involves risk including the potential loss of principal. No investment strategy such as asset allocation or diversification can guarantee a profit or protect against loss in periods of declining values. Past performance is no guarantee of future results. Please note that individual situations can vary.

*Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors. Securities sold or redeemed prior to maturity may be subject to a substantial gain or loss. In general, the bond market is volatile as prices rise when interest rates fall and vice versa.

*There can be no assurance that alternative investments will be profitable and will even outperform asset classes correlated to the stock and bond markets. These strategies are not suitable for all investors and may be offered only to clients who meet specific suitability requirements, including minimum net worth tests. Investors should consider the special risks with alternative investments including limited liquidity, tax considerations, incentive fee structures, potentially speculative investment strategies, and different regulatory and reporting requirements.