Aging can be less stressful with a little bit of planning.
With each passing day you grow older.
Some people fear aging.
Others do not.
If you are age 59½, then 60 is just around the corner.
You do not need to dread this milestone.
According to a recent Kiplinger article titled “What Should You Do When You Turn 59½?,” you can take steps now to make your retirement years more enjoyable.
What can you do?
When you turn 59½, your relationship with your retirement account shifts significantly.
You can begin making withdrawals without incurring penalties.
This can be helpful and provide more flexibility as you make payments.
Do not spend it all at once.
Set up a safety net.
Emergencies funds are important at any age.
Things happen unexpectedly.
Your 401(k) can now help serve as a safety net.
Does this mean you should ditch your other emergency funds completely?
You may find it easier to access money in the other accounts, but these need not be your only source of a safety net.
Make of catch-up contributions.
You are eligible to set aside more into your retirement accounts.
Both your personal IRA and employer-sponsored accounts are included.
This can have a double benefit of decreasing taxable income and thus saving your money from current taxation.
Research in-service rollovers.
The open market has more investment options than 401(k) plans.
You may now be able to rollover some of your 401(k) funds into an IRA while you are still employed in the same position.
What does this accomplish?
It allows you to have more control over the funds both in investments and in withdrawals.
Evaluate your spending.
Do you know where your money goes?
If not, you are shooting blind.
Knowing what you spend now will help you calculate what you will need in retirement.
You can create a retirement budget now to see how much longer you will need to work to achieve your desired lifestyle.
Do no neglect health care.
You will still need health insurance.
You cannot access Medicare until age 65.
If you retire earlier, you will need to know your options for coverage until you are eligible for Medicare.
Taking steps now to set goals and plan for the future will usher in a far more stable and enjoyable retirement.
Seek the assistance of a financial advisor well-experienced in retirement planning.
Reference: Kiplinger (June 28, 2019) “What Should You Do When You Turn 59½?”