By : Brionna Kennedy
Retirement can be a scary thing, because it means the loss of a steady paycheck from work. Here’s 5 things to take care of to secure financial independence before retirement to ensure a smooth transition.
1) Prepare for Social Security
The US government offers a Social Security calculator that estimates the potential SS payments of a person nearing or over the age of 65. This can help provide some guidance about what the post-retirement income of the household will be as the work checks stop and the SS checks start. Think about how the transition to Social Security will affect budgeting for bills.
2) Take Stock of Investments
Soon, the time will come to finally start drawing down on those retirement accounts like IRAs and 401(k)s. Get to know the accounts- know how much money is in each and what the rules are for withdrawals on each one. There are a lot of potential penalties for withdrawing at the wrong time, so make sure to read carefully. Note how long the money will last at different levels of monthly withdrawals.