Money Moves to Make Before You Retire

Maybe you're close to retirement, maybe not. Either way, it's never to early start thinking about your retirement plans to ensure you are as best prepared as you can be. Here are some things to consider as you get closer to retirement:

  1. Check Your Retirement Accounts: Maybe you have a 401(k) or IRA of some kind that you have been contributing to for years but haven't really checked on? Now is a great time to make sure you are maximizing contributions, particularly if you have an employer match. If you have IRA accounts and are over 50, you can take advantage of catch up contributions, which are a set amount set by the IRS each year.

  2. Come Up With Your Retirement Budget: Give serious thought to how you want to live out your retirement and make a budget accordingly. This will allow you to really hone in on how much money you need to save before you can retire.

  3. Invest Your Money in a Diverse Portfolio: Don't put all of your financial eggs in one basket. Having a diversified portfolio can help protect your income for the long term. As you get closer to retirement, it may be wise to make your portfolio investments less risky.

  4. Look Into Multiple Income Streams: Once you retire, you likely won't be receiving a regular income stream. However, looking into options such as a side hustle, real estate investment, pension payments or more can help make your retirement planning easier.

  5. Work on Paying Off/Consolidating Debt: You definitely don't want to enter retirement saddled with debt. If you have any, come up with a plan now for how to pay it off.



Source:


https://www.realsimple.com/work-life/money/money-planning/money-moves-before-retirement

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