FARTHER together

By Stratton Horres

When I was considering retiring from law two year’s people ago I created my own retirement checklist. Retirement is unique to each individual and your own professional expert consultants should be engaged regarding your specific circumstances, needs and goals. I share this with you as only a suggested checklist and guideline.

There are a number of general retirement considerations, however, that also are important in your planning. The number one consideration is your health and having adequate health insurance in place. Are you eligible for Medicare? Bear in mind that studies show that couples who retire at 65 need $250,000 to cover health care expenses. Medicare will cover approximately 50–60% of that, the rest is out of pocket. If eligible, you need to know the amount of your monthly premiums. Then there are additional out-of-pocket costs for prescription and supplemental plans. Carefully compare the plans and premiums before deciding on the ones that are best for you. 

I suggest getting an expert involved here to advise you on the coverages and costs. If you aren’t yet eligible for Medicare, you need to figure out what your coverage will be under COBRA and/or other health care plans. It is not inexpensive. You do not want to head into your retirement without having this important consideration settled and covered.

• Look into your eligibility for Social Security and what your benefits look like; then decide, with counsel from an adviser, what your options are and when it is most advantageous to take them. 
• Figure out your numbers – what are your nest egg baskets (bank accounts, CDs, treasuries, life insurance, real estate equity, IRAs, 401(k)s, social security benefits, pension and defined benefit plans) and then what are your debt baskets (mortgages, dependents, investments such as real estate, second homes, vehicles, credit card and consumer debt, loans). Make an itemized chart.
• Retirement isn’t just for you, it also involves your spouse, kids and other beneficiaries. According to Jim Bowman, financial adviser at Assante Wealth Management, “they have to pay the price for any mistakes or failure to plan on your part so make sure you have a will in place and any trusts set up beforehand.” 
• Once you have gathered all the information, begin to create a retirement budget – start by figuring a monthly budget of income versus expenses and start trimming where you can.
• Begin to simplify your life and pay down as much debt as you can while you’re working; this will expand your options when you retire. At a minimum, look into paying off the mortgage on your primary residence, as your retirement will be much easier without it.
• Figure out your tax situation – consult a financial adviser about how to handle your withdrawals in the most tax advantageous way. 
• Set a realistic countdown and keep track of it so you don’t get caught short, and be flexible, as career and personal developments dictate.

Checklist: Your Retirement Plan

• Design your retirement and create a checklist of goals (for example, where you want to live).
• Determine what percentage of your current income you will need to maintain that standard of living.
• Prepare a budget accordingly and stick to it.
• Manage your taxes with the guidance of professionals.
• Consult with financial planning and retirement experts to maximize your retirement income and benefits (monthly social security benefits, for example). 
• Have your retirement activities in place so you won’t have any “hang time.”
• Think about your funeral expenses and arrangements and make your wishes known, preferably in writing.
• Keep your important documents (will, trust, financial information and so forth) in a safe, secure location and make sure someone completely trustworthy has access to them as well as to your passwords (cell phone, computer and online accounts).

Pamper Yourself 

There will be an adjustment from going full tilt to a hard stop – know this going in – but also remember that you’ve worked hard and had a great career, done the preparation and planning, and now it’s time to enjoy yourself!

Socialize with others in your age group and those with similar interests, perhaps reconnect with old friends. Stay active – travel, pursue hobbies and dreams, exercise, stay fit. Active people live longer and are happier! Meditate and commune with nature. Write that book! Give back by volunteering for local charities and pro bono organizations – there are lots of needs!

One last bit of advice before you dive in: your retirement may seem like a distant state of nirvana now but it’s never too late to start thinking about what your retirement will look like. In fact, today is the perfect day to start not just thinking about but planning your retirement. Your career will go by much faster than you think and the downward slope will be upon you before you know it! 

Finally I wish to thank Jim Bowman, my own retirement adviser, for reviewing this article and offering suggestions for accuracy and content.
NOTE: This article reflects my opinions only and should not be relied upon as financial advice.

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