Considerations in retirement planning:
An Investopedia.com article last week outlined nine things you should know if you are retiring in 2011:
Social Security Benefits Qualification. Are you old enough to begin receiving your Social Security benefits? You can find out at www.socialsecurity.gov.
Retirement Account Withdrawal Requirements. Once you turn 70 ˝, you are required to start withdrawing money from your traditional IRAs and 401(k). This is counted as taxable income, so be sure you’ve planned for it.
Monthly Budget. You need to create a realistic monthly budget and be sure it includes a reserve for emergencies.
Insurance Coverage. Purchase Medicare supplemental insurance and, if you can afford it, long term care insurance.
Mortgage Refinancing. Before you retire, consider refinancing your mortgage if it makes financial sense; retirees usually have a harder time borrowing money and are usually charged higher interest rates.
Investment Protection. Once you retire, capital preservation becomes more of a priority. If you’re in risky investments, think about adjusting your strategy.
Update Your Will. Consult with a California estate planning attorney to update your will and discuss tax-saving and asset protection strategies.
Plan Your Medical Care. Draft a living will and have your California estate planning attorney assist you with creating a medical power of attorney.
Consider Work Options. If you need to work part time, keep your skills sharp via local community colleges or business schools. Consider a Private Asset Trust to maintain benefits.