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It is always a good idea to start planning for retirement early. In fact, when it comes to retirement the age old phrase 'The Earlier, The Better' applies. It is important to begin planning for your golden years well in advance to ensure you can lead the same quality of life before retirement. Many people suggest that you should, at a minimum, take between eighteen to twenty-four months of preparation and planning for your retirement.
During this time period, you will want to clean everything up. In other words, you will want to make sure to relieve yourself of any outstanding fiscal responsibilities or debts you might have. You do not want to have to use your savings or pension plan to make these payments. Living on a retired person's income, this could quickly drain your assets. Approximately one year before you reach retirement, you will want to begin filling out all the paperwork that may be necessary and gathering all items as well to ensure that you make the transition smoothly. These may include identity papers, birth certificates, and passports. Check with your employer about six months prior to retirement and consult with them about your health insurance and how it might change after you retire. If they will not continue to cover you or you find it is just too expensive, you will want to start looking for other insurance. You will also want to consider any ailment you might currently have. In retirement, it is necessary to have medical insurance because paying for the expenses might be overwhelming on your income. You will want to create a budget that is manageable and reasonable before you reach retirement. This means you will want to include all sources of income that might come from your pension plan, personal savings, or Social Security. The budget should include all your expenses, but also be comfortable, suiting your financial well-being during retirement. This should be done as soon as possible, because if you must change it, you will have time, without having to worry much about where the dime is going to come from. Unexpected expenses often pop up so you should plan for these. A financial advisor may come in handy when it comes to the budget, just make sure that the one you choose has a solid reputation. You should also speak with a tax advisor about paying your taxes. While your income will change, one thing remains the same and that is taxes. You want to make sure that you set up a payment plan that is suitable for you and affordable too. Keep focused, make a plan, you will make it! Without a plan, you plan to fail. |
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