Retirement Participants Take Note

wallet with money

When it comes to planning your retirement, it is important that you follow a certain strategy. You have to define the issues that surround your plans and identify the other factors that may affect your retirement. Below is the checklist that will help you in planning for your retirement.

For expenses and longevity

First of all, make an estimated amount regarding your expenses. Then determine the cost of your expenses, both for unexpected and long-term health care costs. Be sure that you have a 20 to 30-year retirement plan.

Also, make sure that you have a medical plan in place as this will provide medical insurance coverage as well as your expenses regarding long-term care. In addition to this, make sure if you have accounted for increases in your premiums and your expenses.

For withdrawals

When it comes to this part, be aware of what your withdrawal rate is on your portfolio in comparison to the 4 to 5 percent rating. Also, find out what accounts you have. Know whether they are taxable, tax-deferred, traditional or Roth IRAs.

For inflation and taxes

When it comes to inflation, know if you have planned for a 3.6 percent annual inflation rate increase. This will prove important when it comes through your retirement years. Also, be aware of what steps you have taken to keep up with the inflation and your purchasing power.

When it comes to taxes, be sure you have planned to have prepared yourself with your future income taxes as well as the amounts that you have to reduce on your retirement years. Also, you have to put into consideration whether you are going to convert your traditional IRAs into Roth IRAs or into annuities.

For your sources of income

Determine at what age you will receive your Social Security benefits. Plus, identify the strategies that you wish to use to continue generating income for your portfolio. Whether it is from interest payments, stock dividends, annuities and IRA dividends or a combination of any of these, will prove important as a means to let your income grow.


Posted by Ardent Editor on Feb 9 2009 in Retirement 101

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