61: Look Ahead

Anticipate how you would like to spend your retirement

Healthcare may be one of the largest line items within your retirement budget. While many healthcare costs are unavoidable, some actually can be avoided or reduced with preventive actions. Now is the time to assess your well-being from a health and financial perspective as you approach retirement. Personal situations always vary, but you can certainly identify opportunities to improve

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Practice Your Budget

Once you are able to create a retirement budget based on the income you will need and expenses you will be responsible for, you can prepare by living on your forecasted discretionary income today. This will help identify potential future lifestyle changes.

Avoid Overlooking Taxes

When analyzing retirement savings, remember the entire balance is not yours to keep. Traditional 401(k) or IRA withdrawals are taxed at your rate for ordinary income. For example, anyone in the 24% tax bracket will actually receive $760 of every $1,000 withdrawn.

Preventive Measures

To avoid potential costs when you are on a fixed income, look for ways to improve your overall health and reduce risk. While you may be working full-time, there could be an opportunity to take advantage of a flexible schedule to improve your well-being.