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Although my wife and I are still quite some time away from retirement, I don't think there's anything wrong with being ready. That being said, here is our four-year retirement plan as it stands now, though this could be subject to change well before we ever get there.
Four Years Out
With four year to go until retirement, there are a few things I want to be gauging and deciding upon.
— Social Security — At this point in our lives, not only will we want to have a clear understanding of what our benefits are, but we will want to utilize the estimated payment calculator at www.socialsecurity.gov to determine what our payments will be in another four years.
— Retirement plan — This will be the time to really begin watching our retirement plans consistently in order to gauge our progress as well as to start making slight adjustments toward less risky investments.
— Real estate — With four years still left to go, we will also want to start getting a good feel for the real estate market in which we live in preparation to put our home on the market (if we own). We will also start making trips to the location or locations we are interested in retiring to in order to feel them out for real estate prices and cost of living differences.
Two Years Out
With just two years to go, I'm sure the anticipation of retirement will be heavy upon us. Here are the steps we will likely be taking at this point.
— Location — At this point, we'll be selecting our retirement location and creating a location specific budget and expense list based upon that particular area's cost of living.
— Real estate — When it comes to our home, we'll likely be making repairs and upgrades and finding a Realtor in preparation for putting our home on market. We'll also be scouting new retirement homes or apartments based upon available income, needs, and the area.
— Retirement Plan — With only two years to go, we'll want to move our portfolios to more secure investments in anticipation of retirement. We don't want to get caught in a market bubble at this point and lose half our portfolios' values.
One Year Out
One year may not be that much time to make adjustments to our retirement plan, so I hope to have most things moving in the right direction by this time.
— Social Security — It will be time to buckle down, find out exactly what we are looking at as far as payments go, determine Medicare needs and contact our local office to get the process started (should social security still exist by this point).
— Real Estate — We will hopefully be in the process of selling our home or closing a deal and if in an apartment, at least downsizing and preparing to move to our new location.
— Jobs — It will also be time to give notice to our employers, prepare to train replacements if need be, and leave work in good standing. You never know when you might need contacts from a previous employer in the future.
— Retirement Plan — We will hopefully have the majority, if not all of our retirement plan moved into income paying funds and similar highly secure investments by this point in order to avoid market fluctuations and provide additional retirement income.
— Asset Allocation and Utilization — With only a year to go, we will also want to have a good idea of where all of our available assets lie, in what amounts, and in what order or percentages we plan to begin drawing upon these assets if or when needed.
Hopefully, by sticking to a four-year plan like this or something close to it, we will be ready to begin our retirement on time and in the most efficient and effective way possible.
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Disclaimer: The author is not a licensed retirement or financial professional. The information provided in this article is for informational purposes only and does not constitute legal or financial advice. Any action taken by the reader due to the information provided in this article is solely at the reader's discretion.