Your late 50s can be an exciting time as you get closer to retirement; but it can also be stressful and intimidating when you face new challenges, needs, and financial objectives. Deciding when to retire, figuring out new expenses, and wondering if you have enough saved are the kinds of thoughts that may be racing through your mind at this age. Having goals to reach in your 60s can help ease these worries. While we recommend speaking to your financial advisor to create your own goals, we’re providing a few to consider as you approach retirement.
Consider What’s Coming In and What’s Going Out
It is a great idea to sit down with your spouse and look at what your income may be like if one or both of you retire. Figure out how much money you have coming in each month and from what source. Then, look at your expenses. See how much money you are spending each month, where you are spending each dollar, and how much money is left over. See if there are places you can trim your budget and take into consideration new expenses in retirement, including increased medical costs and more travel or leisure expenses.
Pay Off or Consolidate Any Outstanding Loans or Debts
Any debts that accumulate interest should be dealt with immediately to limit the wasted money on interest. If you can eliminate your mortgage or car payments, that can save you hundreds or even thousands each month. This monthly cash flow savings could create some financial flexibility in retirement.
Plan to Retire Before You Actually Do
Saying you will work into your 70s is a tall order. Don’t plan your finances around working until 70 because anything can happen. Your health or ability to work every day could change and you could be forced to retire early. This can throw off your savings and your budget, and you could be in a tough situation if you didn’t bring in as much income as you planned for.
Liquidate Unnecessary Assets
Still have that cottage you haven’t visited in five years? What about the boat you haven’t taken out for a few summers? Do you have a motorcycle or car that hasn’t been on the road for a number of years? Your 60s are the perfect time to liquidate any assets you do not need or use. That extra pile of cash could be exactly what you need to achieve your goals, pay off those outstanding bills, or even retire early.
Plan for the Future
It’s better to be prepared so your loved ones can enjoy what you leave behind. Writing a will or trust, or any other means of splitting up belongings and property is important. They allow your heirs to utilize left belongings without going through a ton of paperwork and court orders. Make it easy for them so they can keep what is important to them and continue the family legacy.