After working quite diligently for about 30 years of your life, you begin to see that the retirement is finally on the horizon. However, the time to relax is still a little far away. There are matters to be dealt with before you retire.
Experts say that the last 12 months of a person’s career are critical and must be spend wisely on planning how you’ll live out your remaining life. This is the time to put your finances, savings and health into order so you can enjoy your retirement.
The Last 12 Months
Here’s what you need to do when you have only 12 months before you retire:
- You will still need the growth of equities, but you need to be careful because a market slide of even 15% a year before you retire will cost you four years worth of income. So you need to cap the stock exposure to 50%.
- If you’ve invested in gold market then manage your investments in Gold Bullion Australia.
- Since your pay checks will stop very soon, so you need to move cash to savings or money market accounts so that you can live off the interest.
- Make a worksheet of all your discretionary and fixed expenses and see if you’ll be able to afford that level of spending or not.
The Last 6 Months
The last 12 months will fly by once you start to focus on planning your retirement and life after that. Here’s what you need to do when you have last 6 months left before your retirement:
- Check the benefits and payments you will receive once you retire from the government. Also, you need to check at what age you can claim these monetary compensations.
- You need to foresee how you’ll pay for your health care. Confirm if your company pays its retirees medical benefits you can avail, like for long-term care and other insurances.
- See if your house where you live right now is going to cost you more than you’ll be able to afford after your retirement or not. If yes, then you need to put your house on market for sale without wasting more time. Also, start looking for affordable places to move to. You can get professional guidance in this regard at buymyplace.com.au.
The Last 3 Months
The retirement days are inching closer day by day now. Here’s what you need to do when you have the last 3 months left before your retirement:
- By this time you must be near 65. This means you can easily enrol yourself for a medical program. Also, by now you must’ve figured out how you’ll cover the supplementary medical expenses that the program will not provide for. Such as prescription drugs and dental care.
- It’s a wise thing to buy funeral insurance policy at this point of life. The main objective of this policy is to help the family financially when the insured person passes away.
Finally, once you’re done with all of this, you can safely retire from your career and join some volunteer groups that you always wanted to join, start a new routine of exercise or maybe even begin planning for that dream vacation.