Get Prepared For Retirement

Follow us on Twitter

Even if you are 10 years away from retirement, you've probably already daydreamed about how you'll be spending your time. But before you sail away on your yacht, there's a lot you need to consider and prepare for.

That's why the U.S. Department of Labor (DOL), MetLife Consumer Education Center, and Federal Citizen Information Center have put together the free Retirement Prep package, which includes the publication Taking the Mystery Out of Retirement Planning. It's full of valuable tips and worksheets to help you get both your finances and your estate in order.

Start by taking stock of your current retirement savings with the "Today's Money" worksheet. Record work retirement savings accounts such as 401(k) plans, IRAs (traditional and Roth), your home equity, personal savings and investments, and other assets for you and your spouse. Once you've calculated this amount, you can use the growth factors from the DOL to estimate how much that money will be worth in 10 years when you retire.

Use the other helpful worksheets in the Retirement Prep package to see how much your money can grow by investing it in different ways and to approximate how much your expenses will be during retirement. Once you've determined these numbers, compare them to see if they match up. If there's a negative figure, don't worry-most people have one. Find out what you can do to close this gap with this informative package.

Preparing for retirement not only involves setting financial goals but also arranging your estate. If you haven't already done so, making a will is a good starting point. A will is a legal document that ensures your assets are distributed according to your wishes when you die. An important part of creating one is naming an executor who will carry out the instructions in your will and handle all of the financial matters involved with settling your estate. Typically, this person is a spouse, adult child, relative, friend, or trust attorney.

Another important part of estate planning is determining how you'd like your financial and medical affairs to be handled if you become incapable of making your own decisions. Learn more about advance directives and appointing a power of attorney in the Retirement Prep package.- US FCIC

Alla's picture

Posted June 5th, 2007 by Alla