Retirement can be a very relaxing, healing, and enjoyable stage of life, particularly if your retirement is well-structured and planned. When you are approaching retirement, you should make plans so you’re well prepared. Here are a few steps you should take before you begin retirement.
Understand Retirement Account Rules
Before you begin your retirement, make sure you understand the rules of your retirement accounts. As you’ve been employed through the years, you’ve likely had retirement accounts that your companies have helped you to contribute to, such as a 401(k) plan or SIMPLE IRA plan. You might have also investment accounts or other assets that you’ve contributed to over the years such as a Roth IRA.
Different retirement investment accounts will have different rules and limitations when it comes to withdrawing your money. For example, some accounts might only allow you to withdraw a certain amount of money. Other accounts might have time limitations on your withdrawals, which might be difficult if you retire earlier than you anticipated. Understanding retirement account rules can help you to be more financially prepared for your retirement.
Get Your Estate Plan Together
Another step you should take before you begin retirement is getting your estate plan together. Your estate plan will dictate and arrange for the distribution of your assets after your death.
When you fill out the legal documents of an estate plan, such as a will or trust, you’ll be able to ensure that your assets are inherited by the proper beneficiaries. Hiring a lawyer can help you to plan your estate thoroughly and avoid complications, such as probate, in the future. Putting property in a living trust will ensure it doesn’t go through probate.
Evaluate your Health Conditions
Finally, before you begin your retirement, make sure that you evaluate your current health conditions. This can help you to implement healthy routines that will be preventative against future health issues, such as chronic illness. You should also make plans for your future health. While it is difficult to predict how your health will be as you age, it is important to make plans for your future care. This will save you from stressing over healthcare decisions when you’re in the middle of a health crisis. It will also help your family to know how to best care for you, especially if your health issues progress to the point that you’re not able to decide for yourself. This will help your end-of-life care go more smoothly for you and your loved ones.
So, if you’re nearing your retirement, make sure that you take the steps listed in this article. You should understand your retirement account rules, get your estate plan together, and evaluate your health conditions. These are just a few of the steps you should take to have a retirement that is enjoyable, well-planned, and low-stress.
Did you enjoy reading this article? Here’s more to read: How to Deal With Looming Foreclosure in Retirement
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