Wealth

How to Simplify Your Financial Life Before Retirement

We spend practically all our lives preparing for our retirement, but when the time comes, the nagging concern and worry don’t necessarily disappear.  Simplifying your financial life before retirement can help you enjoy a more fulfilling retirement.As you approach retirement, it’s important to take proactive steps towards simplifying your finances. Before you turn in your notice, consider the different ways you can make your life a bit easier before you officially start your new and exciting chapter. By planning now, you can reduce the amount of stress and headaches you encounter along the way, as well as give yourself more time to enjoy your retirement.

Consolidate Accounts as Much as Possible. 

Through the years, many people end up with more than one banking and investment account. By choosing one institution to hold all your assets, it is significantly easier to keep track of your finances. If you can, consolidate your banking accounts to just one checking and savings account.

For those who work with multiple financial professionals, consider finding someone who offers a more holistic approach to financial planning. Most financial advisors will manage your investments. However, you’ll want to find one who is a fiduciary who helps you with forward-thinking tax strategies, healthcare and long-term care solutions, and estate planning.  Ensuring that everyone is on the same page provides clarity and confidence as you move into the next season of life.

Go Automatic and Paperless

Nowadays, most financial institutions allow you to set up automatic payments and eliminate paper statements. Not only will you no longer have to worry about missing a payment every month, but instead of having to keep track of countless pieces of paper, you’ll be able to easily access all your statements online, any time you want.

By not having to organize and shred paper, you’ll free up more time to enjoy other things in your retirement. Going paperless can also help you avoid identity fraud by limiting access to paper statements.  Less clutter can help make you feel more organized and in control of your financial future moving forward.

Focus on What Brings the Most Value

There are numerous expenses you could be absorbing every month that don’t necessarily add much value to your everyday life. So, before you enter retirement, revisit services you’ve had for years and see if they are truly necessary and/or accommodate your evolving needs.

Especially when it comes to subscription and streaming services, it can be easy to lose track of what you’re paying for each month. Sit down with your spouse and review the services that may not be necessary now that you’re about to retire.

Retire Strong

A key way to simplify your financial life and retire strong is to focus on strategies from a strong retirement playbook. For many, planning for retirement can be consuming. Before you go into full-on panic mode, take a step back, breathe, and focus your attention on one item at a time so you don’t get completely overwhelmed before you even start.

The 9 steps in the Retirement Playbook are a good starting point to simplify your financial life before retirement. Do some research, visit with a financial advisor, determine your goals and desired lifestyle, and remember to eliminate any bad habits before they creep into your retirement years.

  1. https://www.myirionline.org/docs/default-source/research/boomer-expectations-for-retirement-2016.pdf
  2. http://crr.bc.edu/wp-content/uploads/2015/03/IB_15-4.pdf

 

 

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