As the final stretch toward retirement unfolds, the anticipation grows, and the need for planning becomes even more apparent. In the previous blog post, we discussed essential steps to take 12-18 months before retirement. Now, let's dive into what we believe are the crucial considerations to address in the 6-12 months leading up to the big day.

1.       Review Your Investment Portfolio:

Take a close look at your investment portfolio and ensure it aligns with your risk tolerance and retirement goals. Consider reallocating assets if needed, focusing on a balance that will meet your long-term financial goals. This is also an excellent time to consult with your financial advisor for guidance on optimizing your investments for the transition to retirement.

2.       Finalize Your Budget and Emergency Fund:

Refine your budget for retirement based on the latest information about your income and expenses. Establish or reaffirm an emergency fund to cover unexpected costs during retirement. Having a financial safety net in place provides peace of mind and helps you navigate any unforeseen challenges that may arise. Depending on your circumstances, 3-6 months of total expenses is ideal.

3.       Social Security Optimization:

Determine the optimal time to start claiming Social Security benefits. Delaying benefits generally will result in higher monthly payments, but you miss the potential for more income during what are likely the most active years in your retirement journey. Discuss your options with your financial advisor to make an informed decision that aligns with your long-term financial goals.

4.       Legal and Estate Planning:

Ensure your legal and estate documents are up to date. Review your will, power of attorney, and healthcare directives. Confirm that the beneficiaries listed on your accounts and policies are current. This step ensures that your assets are distributed according to your wishes and minimizes potential complications for your loved ones.

5.       Explore Retirement Lifestyle Options:

As retirement approaches, take the time to envision your post-career lifestyle. Consider where you want to live, what activities you want to pursue, and how you plan to spend your time. Write down your short- and long-term goals and make a plan to achieve them. Exploring these aspects will not only help you emotionally prepare for retirement but also assist in fine-tuning your financial plan to support your desired lifestyle.

Conclusion:

The months leading up to retirement are a critical phase that demands attention to detail and careful consideration of various aspects of your financial and personal life. By addressing these considerations 6-12 months before retirement, you're taking proactive steps to ensure a smooth transition and lay the foundation for a fulfilling post-career life. Stay tuned for our final blog post in this series, where we'll explore the last-minute preparations in the weeks leading up to your retirement day. Remember, the journey towards a prosperous retirement continues, and your preparation today will pave the way for a rewarding tomorrow.

Fortress Financial Group LLC (“FFG") is a registered investment advisor. Advisory services are only offered to clients or prospective clients where FFG and its representatives are properly licensed or exempt from licensure. For additional information, please visit our website at https://fortressfg.net/. For current FFG information, please visit the Investment Adviser Public Disclosure website at www.adviserinfo.sec.gov by searching with FFG’s CRD# 315329.

The views expressed in this commentary are subject to change based on market and other conditions. These documents may contain certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Any projections, market outlooks, or estimates are based upon certain assumptions and should not be construed as indicative of actual events that will occur.