Today’s Hack
As we get closer to the final days of working and into retirement, what do we need to cross off our to-do list? On today’s episode, we are going to break down the count down to retirement and what you need to accomplish before this next chapter in life.
Get Healthy and Stay Healthy
While we’re working it can be easy to get swept up in unhealthy lifestyles. Stress, eating processed foods, and not sleeping enough can all contribute to health issues that will impact us in retirement. You don’t want to lose your health at the exact time you have more free time to enjoy what you’ve saved for.
What Are You Going to Do?
We talk about retiring to something, instead of simply running from your job often. You need to have an idea of how you’ll spend your newfound free time. This is your time to find something you love! Hobbies, volunteering, and finding a community are all great ways to fill the time and can be incorporated into your budget.
Catch Up and Save More
Generally, as you near 50 and get into the retirement red zone, you’re at the top of your career and you are probably earning more than you have before. Now is the time to save more and use those catch-up contributions the government gives you.
Paying off the Debt
While not all debt is bad, the less you have the better. If you have a car payment or mortgage though you’ll want to budget that into your retirement plan. Run the math. Taking money out of your 401(k) to pay off the house probably isn’t the best tax move, but if you have the money elsewhere it might be something to think about.
Understand the Risk in Your Portfolio
As you near retirement the level of risk that’s appropriate for your portfolio is changing. You no longer have the time to recover like you once had. Now you need to start understanding when you’ll need this money and how you can better protect that accumulation.
Working with an Advisor
While there are many things you can research yourself when it comes to your finances, working with an advisor can help you work through the emotional side of a financial decision. There are a lot of moving parts when it comes to your retirement plan and an advisor can give you the information you need.
[0:38] – Counting down the days
[1:28] – Getting healthy and staying healthy
[4:07] – What are you going to do?
[9:36] – Catch up and save more
[10:31] – Paying off debt
[15:04] – Look at the risk
[16:39] – Working with an advisor
[21:07] – Finding the right person
A Quotable Moment:
“Like any retirement decision, understand the pros and cons, the math behind it… At the end of the day if it’s something that keeps you up at night let’s figure out how to do it.”
-Phil Putney