A 401(k) is one of the most common ways to save for retirement, but many pre-retirees know very little about them other than whether they have one. But because your 401(k) is such a big part of saving for retirement, it’s critical that you:
· Take advantage of all it has to offer.
· Understand exactly what types of investments are in your 401(k), and if they’re right for you.
Make a List of Retirement Goals
When it comes to retirement, besides the myriad of things you know you need to plan for financially, don’t ignore creating a very important VISION of your future that may help you to look forward to retiring rather than be concerned over it!
Resolution #3 Start thinking about where your income will come from in retirement.
If you’re nearing retirement, the word “income” should never be too far from your mind. These days, very few people can afford to retire when and how they want on their savings alone. You need a consistent stream of income to meet expenses, reach your goals, and ensure your money lasts a lifetime.
Resolution #4 Decide where you want to live after retirement.
If you’ve lived in the same home for ten, twenty, thirty years, why not just stay put? You know which pizza places are open past nine o’ clock, and the quickest route to the grocery store. More importantly, you’ve got a lifetime of memories stored up in that house, and if walls could talk …
On the other hand, maybe you don’t like the climate and long for a change. Maybe you live farther away from your grandkids than you would like. Maybe you don’t like the recent spate of changes you’ve seen in your community. All these potential cons are important, especially as you get older. If you don’t start planning how to deal with them now, you may never have the chance again.
Resolution #5 Learn your Social Security options
Many people don’t realize that there are ways to maximize your Social Security benefits. In other words, you may have the ability to increase your post-retirement income. Your next resolution, then, should be to learn about the different options for maximizing your benefits, and then decide which option makes the most sense for you.
*****For more details on each one of these resolutions, visit www.theprovestperspective.com for a full report. Or check out our radio show this Sunday, December 30th as we go over each in more detail******