Your Pre-Retirement Checklist With Mark Biller

Show Notes

Comparing retirement planning to a preflight checklist underscores the critical importance of preparation. Just as pilots meticulously ensure the safety of their flight, individuals approaching retirement need to assess various aspects of their financial life to ensure a smooth transition into retirement. This analogy highlights the need for thoroughness and attention to detail in retirement planning, especially for those within a decade of their planned retirement date.

• A retirement planning checklist serves as a comprehensive review to ensure all financial aspects are in order for a secure retirement.
• Such preparation is crucial for a safe transition to a post-paycheck lifestyle, minimizing potential financial turbulence.
• The checklist approach encourages individuals to address and rectify any financial concerns well before retirement, promoting peace of mind.

Setting an intended retirement age is the foundational step in retirement planning. This decision, while seemingly straightforward, involves complex considerations including personal health, job satisfaction, income needs, and eligibility for health insurance benefits. It’s a deeply personal choice that requires introspection, prayer, and discussion, particularly for those in a partnership.

• Choosing a retirement date involves weighing personal preferences, financial readiness, and health considerations.
• It’s advisable to seek divine guidance and engage in open discussions with a spouse to align on future expectations.
• Retirement age, while influenced by societal norms, should ultimately reflect one’s unique life circumstances and aspirations.

A notable gap often exists between the age people intend to retire and when they actually do, primarily due to unforeseen health issues or family obligations. Despite many workers aiming to retire past 65, reality shows a majority retire earlier. This discrepancy emphasizes the importance of flexible retirement planning, accounting for potential early retirement due to health declines or caregiving responsibilities.

• Statistics reveal a disparity between expected and actual retirement ages, suggesting many are overly optimistic about working into their late 60s.
• Planning for an earlier retirement age than desired can provide a financial safety net, allowing for adjustments if circumstances change.
• Acknowledging the unpredictability of future health and caregiving needs is crucial in setting a realistic retirement timeline.

Developing a retirement budget involves estimating future expenses and income to ensure financial stability in retirement. This task can be complex, as certain costs may decrease (e.g., commuting expenses) while others, like healthcare or leisure activities, might increase. Understanding these shifts is vital for creating a budget that reflects the changing nature of expenses through the retirement years.

• Accurately estimating retirement expenses is critical for financial planning, acknowledging that some costs will decrease while others may rise.
• It’s important to consider the evolving nature of retirement expenses, from active early years to potentially more sedentary later years, and plan for healthcare costs accordingly.
• Regularly revisiting and adjusting the retirement budget is recommended to reflect real-world spending and income changes.

Achieving a debt-free status by retirement significantly enhances financial freedom and reduces stress. This goal includes paying off mortgages, car loans, and any other debts. A debt-free retirement simplifies cash flow management, allowing for a focus on living expenses and leisure activities without the burden of debt repayments.

• Eliminating debt before retirement is crucial for optimizing retirement income and minimizing financial stress.
• Strategies such as accelerated mortgage payments can ensure debt obligations are fulfilled before retirement, offering peace of mind.
• Being debt-free enhances the ability to enjoy retirement fully, with more resources available for travel, hobbies, and unforeseen expenses.

• At 31, having had several jobs with different retirement benefits, I'm struggling to keep track of all my money and wonder if I should get a financial advisor to help with a financial plan and investment strategy.
• Owning multiple properties in different states, I'm considering how best to leave them to my children and wonder if a will or a trust would be more appropriate for efficient wealth transfer.