Your Financial Checklist of Things to Do When You RetireYou’ve finally made it to retirementage! Congratulations! Now it’s time totake a few smart financial steps so youcan relax and enjoy your new-foundfreedom!Your financial checklist of things todo when you retireThose early days after retirement canbe much more complicated than youmight have thought. You had the impressionthat the day you handedback the keys to the office would befilled with carefree exhilaration, but it’scrucial to have a financial plan to makesure your later years are going to be asenjoyable as you always wished themto be.Celebrate!Of course, you deserve to celebrate alittle. Perhaps throw a party for familyand friends and go away for a weekor two’s vacation to do whatever youwant.But when you’ve finished with all that,here are a few things you need to do, ifyou didn’t do them already before yourlast day at work.Check your pension and make sureyou have all your documents in orderYour steady paychecks have finishedso your main source of income is goingto be your pension payment everymonth. Make sure you know exactlyhow much you’re going to receiveevery month because that’s all thereis and that you have all those importantdocuments well organized. Anylump sums you’ve received on retiringshould be stashed away and investedand not just thrown into the current accountbecause they have a tendencyto disappear more quickly than youcan imagine! More about how to investthis money later on.Find out about all those freebies anddiscountsDepending on which country you livein, there may be loads of free things ordiscounts you can take advantage of.These may include public transport,cinema tickets, restaurant meals, museumentrance fees etc etc. Alwaysask before you pay anywhere and alwayshave your ID with you so you canprove your age. Find out about certaindays and times when these discountsapply and make the most of them!Check your tax situationIn most countries, pensions are taxableincome. Talk to a good tax advisor andunderstand how much tax you’re goingto have to pay so you don’t get a nastysurprise at the end of the tax year.Check your health insurance and socialsecurity coverageThis is, unfortunately, going to becomeincreasingly important as you get older.If you have a good public healthsystem in your country this might beenough, but if you need private healthinsurance get a good deal now whileyou’re still healthy and don’t wait untilyou have problems when it’ll cost youa lot more.MortgageHopefully, you’ve paid your mortgageoff a long time ago, but if you still havea mortgage to pay every month, there’sa temptation to pay it all off when youretire. However, mortgages are generallythe cheapest loan you have andthe interest you pay is probably deductibleagainst your pension income,so it might be an idea to keep yourmortgage going to reduce your taxes.Check all this out with your tax advisorbefore doing anything rash.Make a budgetIf you’ve received a lump sum, it’seasy to think you’re suddenly rich butthat money is going to have to last you(hopefully) a long time. Make a budgetbased on your regular monthly pensionincome and even try to save a bit outof that every month so you can afford afew vacations from time to time. Don’tuse your savings for your monthly expenses.Bear in mind that now youhave more time on your hands youmight find that your monthly expendituregoes up instead of down. It’s easyto get into a routine of going out more,eating out more and just generallyspending more so make a budget andstick to it.InvestmentsThis is a much talked-about subject.Some people swear by investing inlow-risk bonds which might pay about3-4% a year before tax, or in dividend-orientedshares which might payabout the same. Other people say that,just because you’ve retired, it doesn’tmean you shouldn’t invest in growthshares which might not pay a dividendbut which might go up nicely. After all,most people’s retirement horizon couldbe 20-30 years or more. This is a personaldecision but it might be an ideato have a blend of investments. It canalso be an idea to have a rental propertyalthough as you get older you mightnot have the energy or appetite for allthe management that this entails.Don’t give large amounts of moneyto your childrenIf you’re in your sixties, the chancesare that your children are goingthrough the most stressful part of theirlives. They probably have a large mortgage,young children, their careersare just getting started and they’reprobably short of money. You may besitting on a tidy amount of money in thebank and there’s a big temptation tobe generous. They might even ask youfor money. Be very careful in this respectbecause when you get short arethey really going to help you out? Thebiggest favor you can do them is to befinancially independent yourself so youwon’t rely on them in the future.Make your home retirement-friendlyThink ahead and consider down-sizingto save on your monthly expenses. Perhapsmove to a house with fewer stairsor to an area where you don’t need acar. There’s no obligation to keep runningthe large family home for the fewoccasions when everyone comes tostay and where you’re still storing yourchildren’s junk that’s been in the atticfor the last 20 years. If you’re going totravel more, it’s probably better to livein an apartment which will be more securewhile you’re away and the costswill be lower and more predictable everymonth.Start a small businessIf you’re in good health, there’s no reasonyou can’t start your own small business.This could be good fun, it’ll keepyou busy and it’ll bring in some extraincome which will always be useful.FOR GREAT OFFERS AND FREEBIES IN YOUR NEIGHBORHOOD VISIT OURTOWNSDEALS.COM • ©2020 DISCOVER THE BEST OF MAGAZINE • OURTOWNSFINEST.COM • 818-573-5443
FOR GREAT OFFERS AND FREEBIES IN YOUR NEIGHBORHOOD VISIT OURTOWNSDEALS.COM • ©2020 DISCOVER THE BEST OF MAGAZINE • OURTOWNSFINEST.COM • 818-573-5443
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