Financial Milestones You Should Reach in Your 60s

Once you reach your 60s, your nest egg is hopefully the largest it has ever been. Does this mean you’ve won the “race” and there are no more financial milestones to reach?

Actually, no. While the bulk of your financial endeavors are behind you, and it’s hopefully smooth sailing from this point forward, you still have a few goals to accomplish. Remember to stop in at these financial checkpoints during your 60s.

Estimate your annual income from your retirement fund. It’s one thing to accumulate a tidy pile of money in your retirement fund. It’s quite another thing to discover how far your distributions will carry you. Make an appointment with us to discuss the income you will need in retirement, what you can expect from your retirement fund, and your estimated Social Security benefits.

Decide when to claim your Social Security benefits. As you probably know, you can claim your benefits earlier than your full retirement age, if you’re willing to accept a permanent reduction (of about 25 percent) in your payments. On the other hand, waiting beyond full retirement age to claim your checks can result in a larger benefit. We can help you decide which route is right for your situation.

Make a decision about your home. Do you want to stay in your family home, even though you no longer need that much room? Keep in mind that the cost of maintenance may turn into a burden one day. On the other hand, you might be considering a move to a place with a better climate or a lower cost of living.

Consider income taxes. Before you retire, consider the possible tax consequences. You might not remain in the same tax bracket once you stop working, and certain retirement fund distributions are taxed differently. Make sure you’re prepared, so that you don’t face an unpleasant surprise the first time you file your income taxes as a retired person.

Consider Medicare supplemental plans, and other forms of insurance. Many retirees assume that Medicare will cover all of their medical expenses, and are shocked by the amount they are still required to pay. Investigate all of your supplemental insurance options, as well as long-term care insurance.

Update your will. If you first drafted your will years ago, you should take a look at it. Make sure it still reflects your final wishes, and update your beneficiaries as necessary.

Reconsider your life insurance needs. The point of life insurance is to cover funeral expenses, and to replace lost income to protect your dependents. Once you retire, your financial and living situations might be drastically different than they were back when you first purchased your life insurance policy. Call us to schedule a review, so we can make sure your life insurance policy still reflects your needs.

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