September 1, 2024 — As retirement looms on the horizon, ensuring your financial future is secure requires more than just saving diligently. It involves strategic planning and smart decisions to guarantee a comfortable and stress-free retirement. Here are eight essential money moves to consider before you hang up your work boots:

1. Maximize Retirement Account Contributions
   Before you retire, it’s crucial to take full advantage of tax-advantaged retirement accounts like 401(k)s and IRAs. Aim to contribute the maximum allowed each year. For 2024, the 401(k) contribution limit is $23,000, and for IRAs, it’s $7,000. These contributions not only reduce your taxable income but also enhance your retirement savings growth.
2. Pay Down High-Interest Debt
   Reducing or eliminating high-interest debt, such as credit card balances, is a smart financial move before retirement. The interest on such debt can quickly erode your savings. Aim to be debt-free or significantly reduce your liabilities to ease your financial burden in retirement.
3. Review and Adjust Your Investment Portfolio
   As you approach retirement, it’s wise to shift your investment strategy from aggressive growth to more stable, income-generating assets. Rebalance your portfolio to ensure a mix of stocks, bonds, and other investments that align with your risk tolerance and retirement timeline.
4. Create a Detailed Budget
   Establish a comprehensive retirement budget that outlines your expected expenses and income. Include essentials like housing, healthcare, and daily living expenses, as well as discretionary spending. A well-crafted budget will help you manage your finances more effectively and avoid surprises.
5. Evaluate Social Security Strategies
   Deciding when to start claiming Social Security benefits can have a significant impact on your retirement income. Assess various claiming strategies to determine the optimal time for you. Delaying benefits until age 70 can increase your monthly payments, but starting earlier may be beneficial depending on your situation.
6. Consider Healthcare Costs
   Healthcare expenses can be a major financial concern in retirement. Review your options for Medicare and supplemental insurance plans. It’s also a good idea to establish a Health Savings Account (HSA) if eligible, which offers tax advantages and can help cover out-of-pocket medical costs.
7. Update Your Estate Plan
   Ensure that your estate plan is up-to-date, including your will, power of attorney, and health care proxy. Review beneficiary designations on your retirement accounts and insurance policies to make sure they align with your wishes. An updated estate plan helps manage your assets according to your desires and minimizes potential legal complications.
8. Plan for Longevity
   With increasing life expectancies, planning for a longer retirement is crucial. Assess your retirement savings to ensure they can sustain you throughout your retirement years. Consider options like annuities or other income-producing investments to help manage the risk of outliving your savings.

By taking these proactive steps, you can pave the way for a more secure and enjoyable retirement. It’s never too early to start planning, so take action now to ensure that your golden years are truly golden.

For personalized advice tailored to your unique situation, consult a financial advisor to guide you through these important preparations.