5 Years Out - 9 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 5 years. So, I have compiled a list of 9 recommendations for what to do when you are 5 years from retirement.

1. Make a list of retirement “needs” and “wants.”  If you do not have enough savings for all your “needs,” make a five-year plan to increase your funds.
2. Fine-tune your retirement income plans. Review your projected expenses, add up your reliable sources of income and figure out how your investment portfolio will cover the gap.
3. Run tax projections periodically to ensure you take advantage of opportunities the IRS provides, such as ROTH IRA conversion strategies.
4. Double-check your reported Social Security earnings (www.socialsecurity.gov) and resolve any discrepancies now. Explore your Social Security claiming options and make sure you understand the timing of applying for benefits.
5. Ask your HR department about the relationship between your current health insurance and

Medicare, as well as what your options are when you reach age 65. Get information about any pension or defined contribution options and any other retiree benefits.

1. Continually monitor and analyze your mix of stocks, bonds, cash and other investments to make sure it is the right one for you.
2. Understand whether or not you should move to a more conservative asset allocation or continue investing for growth.
3. Research when stock-based compensation might expire and what stock awards you can retain after retirement.
4. Make sure that all of your estate documents are up-to-date. Verify that your named executors and proxies know your wishes and are willing to act on them if needed.

If you are five years out from retirement you should get started on this list right away.  

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