For many, retirement is right around the corner. While there are many things to look forward to in the future, there are several financial tasks that still need your attention before you set off on your next adventure.
David Sant with Cyprus Credit Union stopped by with the following tips:
As you get closer to retirement, you should be contributing as much as possible towards your retirement accounts.
• As of 2018, the maximum amount you can contribute to a 401(k) each year is $18,500 and a Traditional/Roth IRA is $5,500.
• If you are over 50, you can contribute an additional $6,000 to your 401(k) and an additional $1,000 for a Traditional/Roth IRA.
It may be helpful to reach out to a financial adviser if you need help in the final years leading up to retirement.
Start Paying Down Debt
The last thing you want to do is spend your hard earned retirement savings on paying your debts. If you haven`t already, now is the time to come up with a debt elimination plan. Start with your debts with the highest interest rates as this will help you save more money in the long run.
Create a Budget
We talk a lot about budgeting and its importance. This is no truer than it is when approaching retirement. You will want to have a clear picture of what your life is going to look like, and how much money you will have available.
• Once you have a fixed income, it`s important to make sure you know where every dime is going.
• In the months leading up to your official retirement, start living on this budget so you can make the necessary adjustments prior to it becoming permanent.
You can find more helpful suggestions at www.cypruscu.com.