Preparing for Retirement Checklist
Planning for retirement can be both an exciting and daunting task. This next phase in your life can bring exciting new adventures, but it is important to prepare properly and know that you are in a place financially where you can retire from your job without worry. While many people do not consider it, consulting an attorney during your preparation for retirement can be incredibly beneficial to the planning process. A lawyer can help you understand the legal aspects and potential ramifications of certain retirement options and help craft a plan that is specific to your unique situation. At Kearney Baker, our experienced team of attorneys has helped many clients prepare for retirement and can advise you on all aspects of your retirement plan. Call or contact the office today.
Eliminate Your Debt
The last thing you want to think about in retirement is how to pay off remaining debts. Before you retire, eliminate as much debt as possible. This includes a mortgage, car payment, student loans, credit card debt, and more. Try to eliminate the highest interest rate debt first as that will take the biggest hit on your fixed income in retirement. Map out a plan to eliminate your debts and use that to determine when the best time to retire will be for you.
Create an Emergency Fund
Once your major debts are eliminated, create an emergency fund for your retirement years. This fund will protect you when the unexpected happens or if there are delays in receiving your benefits, such as a pension or Social Security payments. Experts vary on how much your emergency fund should be, but most agree that it should be somewhere between three months and one year’s worth of living expenses.
Consider Health Care Needs
As you enter retirement, health care will become an increasingly significant consideration. This is particularly true if you plan on traveling during retirement. Factor healthcare expenses into your budget and reconsider your health insurance coverage. Some retirees opt for a supplemental insurance plan, especially if traveling outside of the United States, as Medicare does not cover international healthcare costs.
Develop an Estate Plan
While many people do not like to consider it, retirement planning is also a good time to consider developing an estate plan. Usually consisting of a will, power of attorney, healthcare proxy, and living will, an estate plan dictates what you want to happen with your assets and estate after your passing and can also contain provisions about your medical choices in case you are ever in a position in which you cannot communicate those decisions directly. An experienced attorney can help you with this and more as you work through your retirement checklist.
Call or Contact Our Office Now
To learn more about what steps you should take as you prepare for retirement, call or contact the law office of Kearney Baker in Pasadena today to schedule a free consultation of your retirement needs with a highly qualified lawyer.