In the U.S., 10,000 people turn 65 every day, according to AARP. As many of those look forward to retirement, Rhonda Bailey, private bank officer at Mabrey Bank, gives advice on moving on financially.
Check in often with your financial advisor
This is the No. 1 thing you can do as you prepare for retirement, Bailey says. “Even if you have been planning, saving and investing wisely throughout your career, a trusted financial advisor will be able to expertly provide data, project market trends and offer wise financial counsel as you wind down your career,” she says.
As a person nears the final clock-out, meeting with an advisor on an annual or semi-annual basis is appropriate.
Compile your resources
Your 401(k) retirement plan, investments in the stock market, real estate or a pension might be some of the resources you have to build your retirement foundation. Social Security at age 62 and Medicare at 65 might just be “icing on the cake,” according to Bailey. “Ensuring you have as many resources as possible at your disposal is critical to maximizing your retirement,” she says.
Stick to a budget
Big expenses like a mortgage and college tuitions have hopefully passed and it’s critical to set financial expectations for the future, Bailey suggests. With help from your financial advisor, tally monthly bills, subscriptions, memberships and vacations, as well as setting some money aside for unexpected home and car repairs, medical costs and unexpected family support.
Test the budget
“Live off your retirement budget for three months while you are still working as a trial run,” Bailey says. “Stick to the numbers you and your financial advisor have prepared. This will help you recognize any necessary tweaks or changes before you draw from your retirement resources.”
Not only in terms of your mental clarity and ability to maximize your retirement dreams, Bailey says seniors must also stay vigilant against fraud as they are often targets.