Millennium_13th Ed_Paul Burmeister

A great deal has been written about financial planning and retirement – and for good reason. A frighteningly large percentage of workers have little tucked away in their 401(k) plans and IRA accounts, and some even say they have nothing saved at all. Saving for retirement is critically important, and the earlier workers begin the process, the better off they will be. Even so, even the financially secure often struggle to transition from working life to full-time leisure, a process that could prove nearly as important. With that in mind, here are seven timely tips for successfully transitioning into retirement. 1. Research your health insurance options ahead of time. When you leave work, you will likely be leaving your health insurance behind, and that means you will need to replace it. Researching your health insurance options ahead of time will make the transition to retirement easier and less stressful. 2. Take your retirement income for a test drive. Thinking you can live on your retirement income is one thing but knowing you can is quite another. As you prepare for the most important transition of your life, try taking your income for a test drive. Adjusting your budget to the amount you plan to spend in your post-work years is a vital step in the retirement planning process. 3. Cultivate social connections outside of work. Over the years, some of your closest connections were probably at work, and losing those friends can feel isolating. To avoid that social isolation, work to cultivate new friendships and rekindle old ones before you hand in your resignation. 4. Fine-tune your budget. The budget you had while you were working is not the same as the one you need in retirement. It is important to work through your retirement budget line by line, from the cost of health insurance to those planning trips to see the grandkids. 5. Decide on downsizing. For many retirees, the equity in their homes is a major source of untapped capital. Downsizing in retirement can free up that locked-in cash and turn it into spending money. 6. Readdress your asset allocation. Saving aggressively for retirement is important, but that high level of aggressiveness can be dangerous while living in retirement. Now that retirement is drawing near, you may want to readdress and fine-tune your asset allocation. 7. Last but not least, you may want to think about your second act. Whether you retire early or right on time, you will likely live for decades after your last day at work. Thinking about what you want to do next, from volunteering in the community to starting your own business, will give you a goal to shoot for. Saving for retirement is critically important, but it is only the beginning of your multidecade journey. If you want to live well in retirement, you need to think about what comes next. The seven tips listed above can do just that, so you can transition successfully into this next phase of your life. 7 TIPS FOR A SMOOTH TRANSITION TO RETIREMENT

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