If you are approaching retirement age, it’s inevitable that you will feel the urge to get your finances under control. Even if you have prepared for your golden years in style, making the right decisions as you enter them will have a huge influence on your experiences.
Knowing where to start can be difficult but the following checklist will point you in the right direction. And once you’ve completed the transition, maintaining financial success should be far easier. Here’s all you need to know.
Downsize to a Suitable Property
Arguably the most common mistake that people make as they head into retirement revolves around their homes. If the kids have flown the nest, paying to maintain a property that exceeds your needs is a huge waste of money. Experts like Alamo Homes can help you downsize to a luxury mobile home. It will free up funds for your retirement while also reducing your monthly living costs.
Aside from the financial aspects, this move makes practical sense. As you get older, it may become harder to climb the stairs or clean a huge home. A property that is perfectly matched for senior living means you’ll never have to move again.
Change Your Investment Strategy
In an ideal world, you will have invested smartly over the past few decades. Hopefully, your risks will have paid off big time. However, the fact that you no longer have a main revenue stream courtesy of a job must not be ignored. As such, it’s best to choose sensible investments. At this stage of life, stability is the most important factor by far. Limiting your exposure is vital.
It is also important to have some assets that offer easy access to capital. It will ensure that your portfolio is far more practical. Not least because it provides a safety net when unforeseen situations surface.
Sell Unwanted Assets
Most people are guilty of hoarding assets that they don’t need. While you will naturally want to keep hold of some sentimental items, others can be sold for good money. Crucially, it will save you from needing a self-storage unit. From clothes to electronics, there is an endless list of potential culprits. The six-month clutter rule should let you know whether something is needed. Do not ignore it.
As well as selling unwanted goods, you could consider passing them on to family members. It’s likely that you would leave them in your will, so why wait? The items will give loved ones more pleasure while it helps you out too. Perfect.
Put Insurance in Place
The harsh reality is that health insurance is more expensive as a senior citizen. However, Value Penguin experts can help you find a plan for retired individuals. Honestly, it is so worth it. There would be nothing worse than not being able to afford the care you need. Besides, having the right coverage will put your mind at ease while also helping your loved ones. Now is the time to take action.
It’s always better to be safe than sorry, especially as you get older. When combined with the steps mentioned above, your financial situation in retirement will look a whole lot brighter. Frankly, it’s the least that you deserve.