Each decade of your life brings a new focus. When we’re children, we can’t wait to grow up and have more freedom. In our twenties, we explore that freedom and begin to establish careers. Our thirties are often about putting down roots and building a family. Then, in our forties and fifties, we begin to truly enjoy the fruits of our labor.
But wait! You’re not done with setting and achieving goals! If anything, one of your largest lifetime goals still looms ahead of you. You should be making serious strides toward your retirement goals at this point in your life. In fact, we recommend that you achieve these nine goals before you turn sixty.
Get yourself on a budget. As you hit the earnings peak of your career, it’s so tempting to splurge on a more comfortable lifestyle. And we’re not saying you shouldn’t! But try to strike a balance between enjoying your present and saving for the future. Set a budget and stick to it, and the transition into retirement will be much more smooth.
Pay down debts. That new budget should include room to pay down your debts. You’ll enjoy your retirement years much more if you aren’t burdened by high-interest payments on credit cards, personal loans, and so forth.
Identify your goals. Once you set personal goals for the future, it’s easier to set a savings goal.
Increase retirement plan contributions. Hopefully, you’re maxing out your retirement plan contributions at this point. Once you reach that milestone, begin to make catch-up contributions at age 50. You can contribute an additional $6,000 per year while enjoying the same tax advantages.
Estimate your Social Security benefits. Around age 60, you will start to eye your retirement anxiously. Social Security will only serve as a supplement to your income, but it will help to know how much you can expect. So, create an account on Social Security’s website, and review your work history and estimated benefits. If you prefer, we can help you with this step.
Draft or update your will. Hopefully, you have created a Will by now. If not, be sure to see an estate planning attorney soon. Even if you did create a Will years ago, it should be updated as you transition into your sixties.
Consider your options for long-term care. Many retirees will need long-term nursing care at some point later in life. It’s best to make these decisions ahead of time, so that the transition can be much smoother when the time comes. Investigate the nursing care options in your area, communicate your wishes to your spouse and other family members, and consider long-term care insurance to help with the cost.
Investigate other insurance options. The whole point of insurance is to protect you against unexpected events. In retirement, you will need to protect your income carefully, so be sure to investigate your insurance options as you begin to think about retiring.
Give us a call. Work with us throughout your forties, fifties, and beyond. We can help you with all of the important decisions leading up to retirement, and continue to help guide you in this new stage of life.