Anne Tergesen of The Wall Street Journalasked Deena Katz, an associate professor of personal financial planning at Texas Tech University, to help her compile a pre-retirement checklist of must-haves. It begins five years out from “the date,” with tasks to be completed annually. Do you have something similar to offer your clients?
Five Years Out
Lifestyle: Start thinking about how you and your spouse wish to spend time in retirement. Take an inventory of your past and current interests, hobbies and activities.
If you need help, hire a personal or life coach (check the International Coach Federation's "coach referral service" at coachfederation.org) or enroll in an online workshop or course at a college or community organization.
Finances: Take a stab at answering The Big Question: Will I have saved enough to retire in five years?
Start by estimating your retirement spending needs, including taxes and premiums for Medicare supplementary coverage. Consider long-term-care insurance, since the sooner you purchase coverage, the lower the premiums will be.
Take advantage of provisions that allow those 50 and older to contribute an additional $1,000 annually to individual retirement accounts and $5,500 annually to 401(k) accounts.
Think about whether you will need life insurance.
Estate Planning: Make sure you have a will, an appointed power-of-attorney, health-care directives and an estate plan.
Four Years Out
Lifestyle: Start exploring your ideas. If you're considering relocating, research the communities you're interested in. Helpful resources include Relocationessentials.com, NeighborhoodScout.com and RetirementLiving.com.
If you plan to volunteer, organizations including HandsOn Network, VolunteerMatch and Civic Ventures' Next Chapter project can help you get started. To ascertain whether an organization is a good fit, start volunteering now.
Finances: Start thinking about Social Security. You can claim benefits any time between ages 62 and 70. But the longer you wait, the larger your monthly payout will be. Factors to consider include your life expectancy and that of your spouse, who can receive up to half of your benefits. It's also important to consider whether you will owe income tax on any of your Social Security income.
Three Years Out
Lifestyle: If you plan to relocate, start visiting communities on your short list. If you want to start a business, enroll in a course or workshop at a local college or through SCORE, a nonprofit that pairs experts with new entrepreneurs (Score.org; 800-634-0245).