Preparing For Retirement - 5 Years Out
You’re one year away from every day being Saturday.
Here’s a few steps to consider at this point.
Review Your Income Streams and Withdrawal Strategies
Our “5-Year Out” blog post covered income streams and withdrawal strategies.
Please re-read that if you haven’t already.
At this point you’ll want to consider reviewing your income streams.
Ensure the amounts you calculated are still accurate.
This will help alleviate any surprises after separating from service.
You can request an annuity estimated, or work with one of our dedicated professionals for assistance on your personal situation.
Try Living On Your Retirement Budget
We’ll assume you already created your retirement budget. If you need a good budgeting worksheet, you can use ours here.
And you should have a good idea of the income amounts you’ll receive monthly.
Now, it could be helpful to try and live on your new budget for a few months.
You’ll soon realize if the budget you’ve set is realistic or not.
If it isn’t, consider how you can adjust to better meet your spending habits.
Research Medicare and Start Planning Ahead
It’s important to sign up for Medicare when you’re eligible to avoid the late enrollment fees.
Make sure you review your current health coverages and any associated costs.
Try to identify any gaps in coverage.
A large medical expenses could derail your retirement budget.
Order Your Retirement Packet
Three months before you retire make sure you complete your retirement packet.
It takes OPM between two and three months, on average, to process your paperwork.
You might avoid delays by staying ahead of this and getting your paperwork in on time.
If you know you’re going to retire ahead of time, you can also let your HR know in advance.
A good HR team will help speed along the process.
Consider Required Minimum Distributions
Required minimum distributions are amounts you must withdraw from any qualified accounts you have, beginning at age 72.
Long story, short…
You’lve been deferring taxes on these accounts, but will need to begin paying them on withdrawals (the withdrawals are required by law).
If you don’t take your RMD, you could face steep penalties.
If required withdrawal amounts are not met, it’s taxed at 50%.
Now is a good time to meet with your personnel office once again to review your OPF folder; double check all the records are accurate and complete.
You can also take a few minutes to ensure your beneficiary designations are up to date.
Stay In Touch With Your Financial Professional
Make sure you’re staying in touch with your financial professional.
They’ve been there, and they can help guide you in the process.
We recommend semi-annual meetings, at least.
Ensure you keep them informed of any changes to your situation and circumstances.
Schedule your complimentary federal benefits review and retirement analysis here with a licensed insurance professional.
For additional information, you can also contact your friends at GPIS by calling 866-201-7829 or by sending an e-mail to firstname.lastname@example.org.
-Sam Wiss, RICP
By responding to this offer, you may be contacted by a licensed insurance and financial professional regarding life insurance and/or annuity products. Not affiliated with, or endorsed by, the federal government or any government agency.
WANT MORE INFORMATION?
We are here to help. Our goal is to provide you with the knowledge and tools to make educated decisions when it comes to your benefits and retirement. Contact us today!