Retirement is just around the corner. Are you prepared?
With only five years left to go before retirement, it’s time to act quickly to get your retirement plans in order.
You probably feel as though you’re on the cusp of a major life change – and you are! But no need to worry – I’ve put together a list of resources below just for you.
I’m Jeff Rose, a CERTIFIED FINANCIAL PLANNER™ professional, and I’ve helped near-retirees just like you reach their goals. And you’d be amazed at what can be accomplished in such a short period of time.
Don’t fear retirement. Instead, get serious about it and focused on your goals. You can do it, and I’m here to help you along the way.
Let’s get started.
Get Long-Term Care Insurance
Assuming you’re not retiring early and are retiring at a more traditional age, it’s probably time to look at long-term care insurance.
According to the U.S. Administration of Aging, there’s over a 70% chance that you’ll need some sort of long-term care in your lifetime. Those are pretty good odds.
But then comes the inevitable question . . . how much coverage do you need? Take a look at the following article that will help you wrestle with possible answers to that question:
There are also some great long-term care insurance alternatives. Some of my clients don’t like making monthly payments and the rising premiums that go along with them. Here’s a video you can check out to learn more about alternative options:
Is Converting Retirement Accounts to a Roth IRA a Good Idea?
Roth IRAs are great for many, many people. But they’re not always the best choice.
When you convert your 401(k) into a Roth IRA, you have to make sure it’s wise to do so. Sometimes it is, sometimes it really isn’t. That’s right, I’ve told clients to stay away from Roth IRAs before.
You can read everything you need to know about Roth IRA conversions here:
Consolidate Your 401(k) – and Other Accounts – the Right Way
If you have multiple retirement accounts all over the place, you may want to consolidate those accounts.
But how do you go about it the right way?
One way to consolidate your 401(k) accounts and other accounts is to use the “Super IRA” strategy that leads to reduced fees and more buying power:
Create a Retirement Plan
Checklists are a love of mine.
They help me get stuff done. And they can help you too!
And when it comes to retirement planning, you definitely need a checklist. There’s just too much to retirement planning to keep all of it in your head.
When you’re five years from retirement, you might be tempted to do everything at once. Don’t do that! Try to focus on the important ones first and have as few goals as you can at one time.
Keeping that in mind, here are some essential factors to consider and start prioritizing:
While creating your own checklist is certainly helpful, it might not tell the whole story when it comes to retirement.
You might find yourself asking questions like:
- “When do I know that I have enough saved to retire comfortably?”
- “Will my investments stand the test of time and last the rest of my life?”
- “Do I have the right investments to reach my retirement goals like taking vacations and giving to my children and grandchildren?”
These are difficult questions that require in-depth analysis. That’s why I created The Financial Success Blueprint™.
The Financial Success Blueprint™ is designed to review your situation and analyze all your options.
For more help on figuring out if you can retire (even early), check out this article:
Get Some Investing Done
You don’t have much time to invest with five years left to retirement – but that doesn’t mean you shouldn’t.
If you’re one of those who hasn’t invested the price of a pizza every month for thirty years (you know the example I’m referring to), don’t dismay. There’s still hope.
The truth is, life happens. Children happen. Short-term necessities are paid for and long-term planning is often thrown out the window. If that’s the boat you’re in, it’s okay. There’s a path forward.
Yes, there are some short-term investments you can make to see returns in five years or less:
A couple of the mentioned short-term investments in the article above include Prosper and Lending Club. Prosper and Lending Club are peer-to-peer lending websites that allow you to lend to others and see some nice returns.
You can read about my Prosper vs. Lending Club experiment here:
How Much Money Do You Need to Retire?
This question might be weighing on your mind, and rightfully so. Do you have enough to retire?
The amount you need for retirement depends on a number of factors including but not limited to:
- How long your retirement will last
- The dependability of your retirement income
- How well you’ve done with investments
For a thorough exploration into this topic, definitely check out this article:
How Much Risk Tolerance Do You Have?
With five years left to retirement, your tolerance for risk should be low, although that might not be the case.
Do you know what your true risk tolerance is?
When I meet with clients, they often struggle to assess their risk tolerance. Moreover, it becomes challenging to match their self-perceived risk tolerance with their retirement goals.
Thankfully, now there’s a simple way to assess your risk and see how it lines up with your investing goals. Best of all, it’s free:
Review Your 401(k)
That doesn’t sound like fun, does it? That’s because for most people, reviewing their 401(k) isn’t fun.
But I can help. My 401(k) review service will provide you with:
- A personal and independent review of your 401(k) plan
- Professional research data (when possible) of your 401(k)
- Concise, customized written synopsis of your 401(k) review and suggested fund allocation chart based on stated goals, age, and risk assessment
Start your 401(k) review today:
One more thing . . . if you have a target date mutual fund I suggest you get out of it. Simply put, target date mutual funds eat through your returns.
Here’s what you need to know about them:
Determine Your Retirement Income Needs
There are some rules of thumb when it comes to retirement income needs, but generalizations aren’t always the best way to go.
It’s so important to determine your retirement income needs, I wrote an article that includes a video about it:
Panicked? I’m Here to Help
I can hear you saying to me, “Jeff, that looks great, but I’m not sure where to start!”
Am I right? If so, please don’t hesitate to contact me. I’m here for you every step of the way. Let’s get ready for retirement!