As you consider retirement, have you created a retirement checklist for your income and expenses? If you have not, you may want to consider creating one. This is because there are no second chances or “do-overs” when it comes to retirement, particularly as a member of the Baby Boomer generation. It may be more challenging, for example, to change employers and receive a similar, or higher, income as you approach retirement age.
No matter what generation you belong to, however, it is important to begin planning for retirement as soon as possible. Once you have started to create or implement a plan, we encourage you to periodically review your retirement goals and needs to ensure it still reflects your current goals and needs.
As a Baby Boomer, do you know the key items to consider when creating or updating your retirement plan?
Let us share with you a few important considerations for your future retirement plans.
First, have you determined what your annual net retirement income will be? This is an important figure to know and understand, as a certain amount of your annual retirement income will be withheld for taxes. Further, do you know what your annual net required minimum distributions from your IRAs will be? Similarly, this amount will be subject to taxes, so we encourage you to plan in advance for the withheld amounts.
Second, did you know that approximately four in ten Baby Boomers plan to withdraw money from their 401(k) accounts before retirement?
Unfortunately, this can be a major mistake when it comes to your retirement expenses. Your 401(k) is designed to pay your income for the remainder of your life. Accordingly, withdrawing money from this type of account before you retire could negatively impact your plans and expenses.
Finally, research tells us that more than 50 percent of Baby Boomers do not review or manage their accounts frequently.
Staying up-to-date regarding the balance of your accounts, as well as taking the time to rebalance your investments approximately once per year is important to keeping your retirement plan updated and current.
We know this article may raise more questions than it answers for you. If you have specific questions, do not wait to contact us. These are only a few considerations on how to prepare for retirement as a Baby Boomer. When you are ready to begin or review your planning, do not wait to reach out to schedule an appointment.