WiserAdvisor – Blog

Main Menu

  • Home
  • Financial Advisor Guide
  • Financial Planning
  • Retirement Planning
  • Education Planning
  • Estate Planning
  • More
    • Personal Finance
    • Portfolio Management
    • Financial Trends/Government

logo

Header Banner

WiserAdvisor – Blog

  • Home
  • Financial Advisor Guide
  • Financial Planning
  • Retirement Planning
  • Education Planning
  • Estate Planning
  • More
    • Personal Finance
    • Portfolio Management
    • Financial Trends/Government
Retirement Planning
Home›Retirement Planning›Retirement Planning checklist

Retirement Planning checklist

By WiserAdvisor Insights
July 8, 2019
2484
0
Share:
Retirement-Planning

Last Modified on June 10, 2020

 “Retirement, a time to do what you want to do, when you want to do it, where you want to do it and how you want to do it” – Catherine Pulsifer

While retirement is like the sweet fruit you get to eat after years of hard work, it is important that the fruit it bears is harvested to the best of its capacity. One of the main worries that surround retirement is the financial aspect of it. Everyone wants to ensure that they’re reaping the best benefits and hope that they’re not missing out on any retirement essentials.

6 Point Retirement Planning Checklist

  1. Assess your current financial standing
  2. Create a surplus/emergency fund
  3. Understand your current debts and liabilities
  4. Map a post-retirement budget
  5. Understand taxes on retirement income
  6. Keep investing for your retirement

1. Assess your current financial standing

Take this as the first step or maybe as a step that you take even before you finally give retirement a serious thought.  This is especially most important for the ones who are looking for an early retirement checklist. Create a balance sheet and assess where you stand financially. Take into account all your assets – savings, property, shares, insurance, etc. Next, subtract all your debts and liabilities. This sheet will not only help you understand how your financial status looks like but will also give you a clear idea of whether you are financially ready for retirement or not.

2. Create a surplus/emergency fund

Emergencies don’t knock with prior notice. Handling emergencies becomes especially tricky when it comes to retirement finances. Ensure you set aside a certain amount from your savings for emergencies. Having insurance additionally will come handy here. Basically, it’s ideal to avoid a hand to mouth situation post-retirement. Hence, this step, that right now may seem trivial, will really keep you covered in the long run.

3. Understand your current debts and liabilities

For a peaceful retired life, it is of utmost importance that you start getting rid of your debt as early as possible. Debt management would include taking stock of your outstanding liabilities, prioritizing them, and devising a plan for clearing them out. Your liabilities can include house/property expenses (rents, taxes, liabilities), credit card debts, bank loans, leisure expenses, taxation, insurance premium payments, etc.

4. Map a post-retirement budget

A good plan is one that is thought through – both in terms of research and detailing. Here too, this part of the checklist requires you to think for the future and calculate the expected sources of income and also your expected expenditure. Your post-retirement sources of income can include social security benefits, pension, return on investments, etc.

While calculating the expected expenditure, ensure that you are not just counting the day to day spending, but also considering your post-retirement goals and plans. For instance, if you want to go on a long vacation once you take a permanent break from work, it is always a good idea to provide for it. Also, let’s not forget that medical costs will constitute a major part of your post-retirement expenses. According to The Bureau of Labor Statistics’ Consumer Expenditure Survey Report, healthcare expenditure (including insurance) eats up to 15% of one’s post-retirement income.

5. Understand taxes on retirement income

This is one of the most important things that you must know before retiring. While you are calculating your post-retirement income sources and creating that budget for yourself, don’t forget to take into account the taxes. Up to 85% of your Social Security Benefits are taxable. Withdrawals from retirement accounts such as IRA withdrawals, withdrawals from 401(k) plans, etc. are also taxable. Pensions too are taxable, subject to certain conditions. If the deposits in your pension account were pre-tax, your pension withdrawals will be taxable. If, however, you already paid tax on the money you put in your pension account, you need not pay any tax.

6. Keep investing for your retirement

In the absence of a regular source of income, the returns on your investments can be your financial support. Thus, it is in your own best interest that you are regular with your investments. To avoid getting distracted, you may automate your investments. For example, with Systematic Investment Plans (SIPs), a fixed sum of money or a fixed number of shares gets deducted from your liquid account (bank savings account or a money market account) on a pre-determined date. Thus, SIPs ensure you invest regularly.

To sum it up

For a happy second inning of life, you must prepare for it right from a young age. Retirement planning is a step by step process to ensure you have enough financial backing when you are not working.

Don’t want to miss out on any retirement essentials? You can approach financial advisors for help. They will not only address all your retirement planning queries but will also help you plan it better.

Retirement Planning ChecklistDownload this article as a PDF

Tags#financial advisor#retirement essentials#retirement finances#retirement planning checklistretirement planning
Previous Article

Choosing the Best Retirement Accounts

Next Article

Why and When do you need a ...

0
Shares
  • 0
  • +
  • 0
  • 0
  • 0
  • 0
WiserAdvisor Insights

WiserAdvisor Insights

A team of dedicated writers, editors and finance specialists sharing their insights, expertise and industry knowledge to help individuals live their best financial life and reach their personal financial goals. We believe that there is no place for fear in anyone's financial future and that each individual should have easy access to credible financial advice.

Related articles More from author

  • Conversation with Your Financial Advisor
    Financial Advisor Guide

    The Need for Honest Conversation with Your Financial Advisor

    February 26, 2020
    By WiserAdvisor Insights
  • Financial-Advisor
    Financial Advisor Guide

    Does Your Advisor Need to Be Local in Times of Social Separation?

    November 1, 2020
    By William Hayslett
  • Financial Advisor
    Financial Advisor Guide

    The Importance of Sharing Your Complete Financial Information With Your Financial Advisor

    December 1, 2020
    By WiserAdvisor Insights
  • Retirement-Savings
    Retirement Planning

    How much will you need to retire?

    December 1, 2019
    By WiserAdvisor Insights
  • Retirement Income
    Retirement Planning

    What Are Good Tax Strategies for Retirement Income – Tips and Guide

    December 18, 2020
    By WiserAdvisor Insights
  • Investment-Strategy
    Portfolio Management

    Different Asset Classes and How to Incorporate them in your Investment Strategy

    February 21, 2020
    By WiserAdvisor Insights

Leave a reply Cancel reply

You might be interested

  • Estate-Taxes
    Estate Planning

    Tips to Minimize Estate Taxes with Proper Estate Planning

  • Risk-Tolerance in Portfolio Mangement
    Portfolio Management

    Understanding the Spectrum of Risk Tolerance in Portfolio Management

  • Financial-Literacy
    Personal Finance

    Tips to Improve Your Financial Literacy

Don't miss out! Get our Helpful Financial Tips Newsletter

  • Popular Posts

  • The benefits of working with a financial advisor - WA

    The benefits of working with a Financial Advisor

    By WiserAdvisor Insights
    July 16, 2019
  • retirement-accounts

    Choosing the Best Retirement Accounts

    By WiserAdvisor Insights
    July 8, 2019
  • financial planning DIY-Checklist

    How to Prepare an Annual Financial Plan – Financial Planning DIY Checklist

    By WiserAdvisor Insights
    June 10, 2019
  • IRAs-Work-401

    How IRAs work? 401k vs IRA

    By WiserAdvisor Insights
    July 4, 2019
  • Retirement-Planning

    Retirement Planning checklist

    By WiserAdvisor Insights
    July 8, 2019
  • Financial-Advisor

    Why and When do you need a Financial Advisor?

    By WiserAdvisor Insights
    July 8, 2019
  • Financial-Professional

    How to prepare for a meeting with your Financial Advisor

    By WiserAdvisor Insights
    July 8, 2019
  • monitor your financial advisor

    How to monitor the activities of your Financial Advisor?

    By WiserAdvisor Insights
    July 16, 2019

Categories

  • Business Finance (2)
  • Education Planning (26)
  • Estate Planning (16)
  • Financial Advisor Guide (15)
  • Financial Planning (100)
  • Financial Trends/Government (2)
  • Personal Finance (8)
  • Portfolio Management (38)
  • Retirement Healthcare (1)
  • Retirement Planning (68)

WiserAdvisor is America’s oldest and largest independent network of screened financial advisors. We make it easy and convenient for consumers to find and connect with advisors in their area. We have successfully helped over 100,000+ individuals find their best financial advisor since 1998 with no match fees, no commitments, no obligation, and complete confidentiality. WiserAdvisor has been featured in The Washington Post, The Washington Journal, ABC, CBS, Yahoo and has been seen in numerous other leading financial news and information websites.

Follow Us

  • Recent

  • Popular

  • Education-Planning

    Education Planning Tips for Self-Employed Parents

    By WiserAdvisor Insights
    April 12, 2021
  • Robo-Advisor

    Can You Trust Robo-Advisors to Create a Solid Diversification Strategy

    By WiserAdvisor Insights
    April 9, 2021
  • Preserve-Wealth

    10 Strategies for Preserving Your Wealth

    By Jonathan Dash
    April 7, 2021
  • The benefits of working with a financial advisor - WA

    The benefits of working with a Financial Advisor

    By WiserAdvisor Insights
    July 16, 2019
  • retirement-accounts

    Choosing the Best Retirement Accounts

    By WiserAdvisor Insights
    July 8, 2019
  • financial planning DIY-Checklist

    How to Prepare an Annual Financial Plan – Financial Planning DIY Checklist

    By WiserAdvisor Insights
    June 10, 2019

Contact Us

Corporate Headquarters

12150 Monument Drive, Suite 700
Fairfax, VA, 22033

Business Hours

8:30 AM – 5:00 PM EST (Monday – Friday)

Email Address

wa.assistance@wiseradvisor.com

Phone Number

(703) 651-2060

Fax Number

(703) 259-4487

  • Privacy Policy
  • Terms & Conditions
© Copyright 2021 WiserAdvisor.com. All Rights Reserved.

Add WiserAdvisor - Blog to your Homescreen!

Add