8 Critical Financial Steps to Take If You Are Retiring Soon

Are you planning to retire soon? Awesome! But there a few things you need to learn in order to financially prepare for this big change in your life. Since we advise clients every day about this very topic, we thought it would be helpful if we gave you the list of our top 8 financial steps you will need to know to minimize money issues later on. 

Figure Out If You Should Keep Working

At times working after retirement may be a good choice for some but others it may not. Depending on your age, working as soon as you start receiving Social Security and Medicare benefits may have a direct positive impact on what you receive. E.g, You might need to figure out how to make your workplace health insurance and Medicare co-exist.

Become a Social Security Expert

Becoming a social security expert might just be a good option if you are retiring soon. Maybe you won’t become an expert as easy as it sounds but you need to know exactly how social security works, what amount of money you will be making and how beneficial it will be to you and your spouse. The government’s Social Security website is a great place for resources and information on what benefit you are entitled to.

Do the Same with Medicare

Do you think Social Security is that complicated? Then you may need to wait until you look into Medicare. There’s Medicare Advantage, parts A through D, doughnut holes, Medigap and plenty of other terms that might interest you.

You’re going to need more than just original Medicare parts A and B, which will definitely involve insurance shopping.

Adjust Your Portfolio

Are you behind on your savings? If so, then you should look for a high-yielding investment product to invest in. You need to picture what your retirement accounts should look like once you enter the accumulation period versus the distribution period.

Ditch the Target Date Funds

Target date funds offer a wау to keep a bаlаnсеd роrtfоlіо thаt сhаngеѕ аѕ you reach your target retirement age. But you probably need to get rid of the fund and invest your money in other products once you reach that target date. Think about Passive vs. Active Investing during your retirement years because what you invest in, is a choice you have to make yourself.

Fine-tune Your Estate Plan

Estate doesn’t mean like you are living in a big mansion in NY,  but in a way, everyone has some sort of estate to call their own irrespective of whether you own a mansion or not.

Your life’s savings, your home, and your assets all will need to be dealt with when you pass on. Now is the time to take another look at your will in case there are changes you need to make. If you don’t yet have a will, then it’s a big mistake you are making. Now is the time, and I mean now, to talk to an attorney and create a will.

If you have a considerable wealth, you need to do all you can to avoid estate taxes. There are attorneys that are specialized in estate planning, they can help.

Decide What to Do with Your Home

Your home might be a liability and also might just be your most valuable asset. But don’t forget that as you age, in addition to all of the kids you have, you might just be paying a lot of money for so many things that are irrelevant and frankly not needed. Though there are many reasons to keep your house, the truth is when you downsize, you can then put your money into your retirement accounts that could be making you money. This is another time when you may wish to talk with a financial planner if you’re not sure about this.

Be Generous

Now is the perfect stage of life to give your money, treasure, talent, and time to others. Take time to travel, see families, financially support a charity you believe in, mentor a young person just starting out in their career, and volunteer at local events. There’s nothing better than staying engaged and giving back to the society… the world needs your experience, so give it.


It’s better to engage the services of a Financial planner because they can help you walk through your retirement transition in a better way and take into account your specific financial situation. Financial planners will also advise you on budget creation for your post-retirement and show you how to keep your funds growing even while you’re drawing on them. These are eight Steps to Take If You Are Retiring.

Now that we covered the eight steps you need to take if you are retiring soon, do you already have a financial planner? If not, get one today!

RELATED ARTICLE: Choosing a Financial Advisor: Independent Local Professional vs Large National Firm

And visit our Income for Life article series to learn what you need to do in order to minimize the chances of running out of money in your golden years.

Income for Life series