After going through this pre retirement checklist, you will have a much better idea about how prepared you are and can be for your retirement. Whether it feels like another lifetime from now or it’s right around the corner, it is never too soon or too late to start preparing for retirement. To truly create the best retirement possible, you must know how it works and the right actions to take. If a pre retirement checklist sounds like a scary, unfamiliar world, don’t worry. I’ve put together a practical list to follow so you can feel confident that you are on the right path toward the best possible future.

1. Outline your vision for your retirement

This is a very powerful part that you do not want to skip. Before diving into how you are going to afford retirement, first put some serious thought as to what your ideal retirement will look and feel like. Do you see yourself fishing, sailing, volunteering, traveling, painting or starting a hobby business? List your most important goals first, narrowing it down to your top few choices. Create a journal or visual scrapbook to draw out descriptive visions of your future. This will allow your retirement dreams to become more tangible. Even if you are not quite sure yet, preparing for retirement with a rough draft of ideas is better than no plan at all.

2. Create a retirement budget

With your future visions in mind, it is now time to create a retirement budget. Outlining a plan now will keep you on track to meet your long-term goals. First estimate how much money you will need to cover those dreams and adventures you drew out for yourself. Then assess your current income and investments. Using these two ballpark estimates, you can then calculate what you need to save annually to meet your retirement goal. Do not overthink this, it can be a short and sweet plan that you will then tweak as the years go on.

At least once a year, revisit this budget. Make appropriate edits, re-calculations and add more detail. Major life events will force you to change your budget such as marriage, divorce, career changes, and having children. This budget is meant to keep evolving with your situation. It should include money coming in, how much debt you have, and how much it will cost to reach your retirement goals. If this is beyond your expertise, it a good idea to find a money coach to help you with these numbers.  A good money coach will also ensure you are making smart decisions with your investments and that your budget considers any outstanding debts or payment plans.

3. Take inventory of your assets

When it comes to listing out your assets, it is imperative to include both traditional and non-traditional assets. Traditional assets such as your home, real estate properties,

automobile and collectibles commonly come to mind. Adopting good money habits with your personal accounts (checking, savings, retirement, investment) will greatly increase your assets. Non-traditional assets are just as beneficial to consider when preparing for retirement. Many skills and passions can be turned into extra income on the side that will help fund retirement. Take the time to list your hobbies and how you can utilize those skills to start your own business.

4. Network, network, network!

Retirement can be lonely, especially if you are used to being around your “work family.” Making connections now can be the difference between a boring and lively retirement. Include a networking strategy when preparing for retirement. Find others who share the same hobbies and interests as you, whether this be through social media, MeetUp groups or word of mouth. Connecting with people and building relationships will allow you to grow your network and your opportunities. The more socially active you are, the more opportunities that will present themselves, not only for pleasure but for having your own side business as well. Be prepared to showcase your skills and how you can contribute to other people and organizations.

5. Research your retirement saving options

There are several options to start building up funds for the retirement of your dreams. Whether you work part time, full time with benefits, or own your own business, there is a plan for you. Many financial experts recommend a 401k from your employers because contributions from paychecks are made before taxes, reducing your taxable income. In addition, you won’t pay taxes until you withdraw the funds. Check with the HR department of your company to see if they offer matching programs, as this is free money!

IRA’s are another option to start saving putting money away for retirement. There are different types of IRA’s, so contact a small business tax accountant to ensure you are choosing the best IRA for your situation.

6. Educate yourself on Social Security

This may be the least-liked part of my pre retirement checklist, but it’s important to be educated about it. While it would be a dream to save enough money to enjoy financial freedom during retirement, realistically most of us need Social Security benefits. The timing of when you start collecting social security has a huge impact on how much you will receive for the rest of your life. Later is better! The longer you wait, the more money you will get monthly. On top of greater monthly income, Social Security gives you a bonus for delaying the start of benefits.

7. Prioritize your overall financial well-being

Financial wellness refers to our current status of financial health and has a direct correlation to preparing for retirement. Reassess the way you currently manage your finances and how you can tweak your approach to improve your financial health. If you have thoughts about not having enough money to allot for retirement savings, you may need to find a way to increase your income. Every little bit of extra income will add up by the time retirement comes. Another option is reducing your spending. Creating a budget is key to successfully preparing for retirement. Rather than tracking what you

have already spent your money on, be proactive in your budget by placing your money where it needs to go before hand. Calculate your committed expenses such as housing, utilities and food, versus your lifestyle expenses such as entertainment and materialistic items. Decide which things are necessary and cut out the rest, putting that money towards savings and investments.

A great way to improve your financial well-being is to hire a business finance coach. They will take a look at your books and find any money saving options you may be missing out on. They can also help you find ways to reduce your taxes, refinance and consolidate debts. High-interest debt can be robbing you of money, so finding lower rates can save you big bucks in the end. That being said, a good coach will go through all of the items on this pre retirement checklist and more to ensure you are prepared for retirement. I’d love to help you. If you feel inspired to receive support with your finances and retirement planning, I offer free no-obligation consultation calls and would love to see if we are a fit. I guide my clients through frustrating financial situations and help them to feel financially empowered so that they can live life the to the fullest now and in the future.