Football fans are familiar with the red zone. Basically, that's the area within 20 yards of the opponents goal line - basically the area where the Washington Redskins have a habit of sputtering. The same concept is used in financial planning. It is generally the 5 years before retirement. This is when the big cross over from full-time job status to a different life style should be given serious thought. The questions that need to addressed and talked out with your spouse are set out in a recent article by Mark P. Cussen, "
8 Toughest Retirement Decisions":
- when to retire
- when to start social security
- where to live
- whether to continue working in some capacity
- whether to sell the house
- when to begin taking retirement distributions
- how to manage the investment portfolio
- how to budget.
These are not easy questions; but thinking about them ahead of time can be the difference between scoring a touchdown, a field goal, or coming away empty-handed.
Planning ahead makes all the difference. Investing mistakes after retirement could prove very costly.
ReplyDeleteI love the simplicity of the 8 points.