Within 10 Years of Retirement? Add These Items to Your Retirement Checklist

Last updated: 2/3/2010 2:15:36 PM

Retirement provides a chance to enjoy the fruits of one's labor. However, a pleasurable retirement requires proactive and thorough planning. As you near retirement age, it is a good time to review your current financial situation and plan for your final career years. With this in mind, we have provided a list of five things you should consider as you approach retirement.

Save, save, save! The key to any secure retirement is having your own retirement savings in addition to what you will receive from Wisconsin Retirement System (WRS) and Social Security.
"Give yourself a 'retirement raise' every year by increasing the amount you are putting away," advises Michelle Slawny, a CERTIFIED FINANCIAL PLANNER™ and Senior Retirement Income Consultant at WEA Trust Member Benefits.
Review your asset allocation with an appropriate financial professional. No matter how many years you are away from retirement, make sure your investment portfolio reflects your investment time horizon.
Put a savings and investment plan in place that targets having 10%-25% of your retirement savings in fixed or stable accounts by your retirement date. The amount you should have in these types of accounts should be equal to your anticipated withdrawals during your first five years of retirement.
Put a plan in place to pay off all non-mortgage debt by the time you retire. If you can afford to pay a bit extra on your mortgage while you are still working, do that too!
Explore the benefits of "tax diversification" of your retirement accounts. Many experts advise having a combination of before-tax (Traditional IRA, 403(b), 401(k)), tax-free (Roth IRA, Roth 403(b), Roth 401(k)), and after-tax (traditional investment) accounts in retirement. Doing so provides you flexibility in managing your tax bills in retirement and may also be beneficial if you wish to pass along assets to your heirs.
"Seeking professional advice and assistance is something everyone should consider as they approach retirement," notes Slawny. "WEAC members may want to consider a Retirement Income Analysis from WEA Trust Member Benefits." This fee-based service is aimed at those planning to retire within 10 years. For more information, call Michelle at 1-800-279-4030, Ext. 6730. Investment advisory services offered through WEA Financial Advisors, Inc.
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