Whether you’re close to retirement or already there, it is crucial to evaluate your plan and make adjustments based on evolving financial conditions. For example, as you approach retirement, it’s a good idea to pay off your mortgage and reduce credit card debt. Doing so can help you minimize the amount of your retirement income that goes to paying interest—a major drain on your savings. Go here ex-ponent.com
Similarly, it’s important to reevaluate your spending plan. If you’re still working, increasing your contribution to a company-sponsored 401(k) or an individual retirement account (IRA) is a great way to increase the size of your nest egg. If you’re already retired, every dollar you spend is a dollar you can’t invest—and it could potentially shorten the life of your savings.
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A robust retirement planning process should address the changing landscape of costs in retirement, including future healthcare expenses and inflation. In addition, it’s a good time to consider estate planning and ways to transfer your wealth to beneficiaries tax efficiently.
It’s also a good idea to shift your investment strategy into a more conservative mix of assets, such as Treasury bills. This can help reduce the risk of market downturns that could strain your portfolio. At this stage, you may also want to consider a low-cost fixed annuity to generate a steady stream of income in retirement.