10 Years Out - 8 Recommendations to Prepare for Retirement

One of the most frequent concerns of clients and prospects is nearing retirement is what can I be doing today to make sure I can retire in the next decade. So, I have compiled a list of 8 recommendations for what to do when you are 10 years from retirement.

1. Be tax efficient with your investments. For example, you should defer as much of your salary as you can to your defined contribution plans.

2. Save to an emergency fund and stay aware of your company’s financial situation. Companies are prone to reorganizations and layoffs, and older workers can be vulnerable.

3. Brainstorm any “big ticket” financial commitments (caretaking for a family member, etc.) for the next 10 years and consider how these items might affect your ability to retire in your preferred timeframe.

4. Take a hard look at any major debts that you have and develop a 10-year plan to eliminate them.

5. Reallocate your portfolio based on your earnings timeline with a focus on performance, risk, and expenses. Decide when – or if – you should shift to a more conservative asset allocation.

6. Review what your tax obligations may be with your current investments and use tax optimization strategies to benefit your savings.

7. Review your estate documents to ensure the language is still accurate. For example, are the named trustees and beneficiaries still alive and capable?

8. Research when your stock-based compensation might expire and what stock awards you can retain after retirement.

If you and your life savings are being ignored or feeling taken advantage of, come join our family. We are a family-owned financial planning and investment advisory firm who promise to treat you like family. No products. No hard sell. No gimmicks. Just honest advice based on four decades of experience.