If you’re hoping to retire soon, you need a plan and a partner. Going into retirement unprepared, can have damaging effects on the retiree’s health, finances, and future. With professional assistance, you can get organized and prepared so that you can enter into retirement with confidence. Here are four things Marcia L. Campbell, CPA can help you do to retire by the end of 2020.
Get Financially Fit
Having enough money to last through retirement is a legitimate concern for many aging seniors. The first thing you need to do is sit down with an experienced CPA, like Marcia L. Campbell, CPA and assess your current financial health. If you have debt, you’ll need to make a plan to pay it down or off completely, so you’ll have more money to spend in retirement. You’ll also need to review your savings, such as IRA or 401(k) accounts. Assess your balances and calculate how long that money will realistically last.
Create a Retirement Budget
Once you’ve evaluated your debts and savings, it’s time to create a realistic budget for retirement. You’ll need to calculate what your guaranteed sources of income during retirement will be and your essential ongoing expenses. You’ll need to make sure that you will have enough income coming in to cover all of your monthly expenses and discretionary spending. It’s important to also factor in money for an emergency fund, unexpected expenses, and any traveling you may be planning for. Work with Marcia L. Campbell, CPA to make sure you create a budget that will provide for your basic needs and desired lifestyle through retirement.
Related article: 3 Ways to Generate Income When You’re Retired
Evaluate Health Care Needs
Before you leave behind your employer’s health insurance, it’s important to consider what your health care needs and associated costs may be in retirement. Many people wait until they are 65 to retire so they can enroll in Medicare, but choosing the right Medicare option is critical. There are numerous options, and choosing the right one can be quite confusing, so consider speaking with an expert that can walk you through it. You’ll also want to consider assigning a power of attorney in case you become seriously ill in the future. A power of attorney allows someone you trust to handle your finances, medical and insurance paperwork, and many other duties. Marcia L. Campbell, CPA, can walk you through the necessary steps you need to take to assign a POA.
Develop a Benefits Strategy
Before you retire, it’s important to know what benefits you qualify for. Create a Social Security account and review your work history to make sure it’s accurate and to determine how much you should expect to receive. Discuss claiming strategies with Marcia L. Campbell, CPA, to determine if it’d be advantageous to start claiming your Social Security benefit earlier or later. You should also look into what spousal benefits may be available to you or your spouse (available to some couples born before January 1, 1954).
Expert Tip: Visit http://www.benefitscheckup.org to find out if there are any other federal or state assistance programs you may qualify for.
Need Help Navigating This Transition?
Navigating the transition into retirement can be complicated and overwhelming if you don’t have a plan. If your goal is to retire by the end of 2020, then you need professional assistance to get you there.
Contact us at 951-686-3608 to find out how we can help you plan for your retirement.