Before entering retirement phase, one needs to be prepared to lead a financial healthy life. It is better to concentrate on portfolio, insurance and other financial products before you retire.
Retirement planning depends on how you want to lead your life after you retire. If you have planned a lavish life, you need to save and invest more in such cases.
Here are 6 must do things before you retirement:
1) Come out of Debt
Retirement is a phase to enjoy the time, not to worry about debt and money related things. For that, one needs to make most of it while working.
Debt can be anything like a home loan, car loan, personal loan or any other kind of debt. Avoid use of credit card which may push you further in a debt trap.
Plan your finances such that, there should be no debt when you enter retirement. So that you lead a happy peaceful life.
2) Insurance Needs
Term and life insurance will get expensive with age. Buy long term insurance plans considering your age.
If you already have insurance plans, consider them again and review with you after retirement lifestyle and make changes if necessary.
3) Home Repairs
Check whether your home need repairs which need to be fixed now or in coming years. Set aside certain funds so that repairs happen on time without hurting your funds.
4) Prepare a Budget
Set aside amount depending on the expenses. By doing so will help understand your expected cash flows.
5) College Expenses
If any of your kid is still in college and have plans of further studies. You can create a separate account and maintain funds in it.
6) Emergency Fund
The main advantage of setting an amount aside is at the time of need, one need not break the long-term investments made.
7) Estate Planning
Families struggle to distribute the wealth among the family members where a person dies intestate, that is without writing a will. There are often court cases and disputes remain unresolved.
So, it is better to do a proper estate planning and review as and when required.