As the golden moment of retirement approaches, it is essential to recognize that the time to plan is now. While a year may seem like an ample period, the days may feel long, yet the weeks and months will swiftly pass. To ensure a smooth transition into retirement, consider the following critical steps 12-18 months before the big day.

1. Identify Healthcare Options and Costs:
   If your retirement precedes the age of 65, bridging the healthcare gap until Medicare kicks in is crucial. Explore healthcare options and costs, particularly if you qualify for tax credits. As an example, in Minnesota where we are located, resources like Mnsure.org offer assistance, with certified navigators ready to guide you through healthcare options free of charge.

2. Evaluate Bank Accounts and Beneficiary Designations:
   Now is the time to simplify your financial life by consolidating bank accounts and -debts. It is also important to confirm that beneficiary designations are updated across all accounts, including retirement funds. While you still have earned income, consider opening a Home Equity Line of Credit (HELOC) through your bank. These accounts use the equity in your home as collateral for a line of credit and can be useful for cash flow during down markets and for making major purchases. Many institutions offer HELOCs with no or low closing costs and no annual fees. Streamlining your financial affairs ensures a more manageable plan as you enter the next chapter of your life.

3. Determine Your Household Income
   Personal financial statements are not just for businesses. Creating an income statement and listing all current and projected sources of income, including social security, pensions, and any income from side hustles or hobbies turned microbusinesses is a critical part of planning.

4. Map Out Your Living Expenses in Retirement
   We believe anticipating and projecting your living expenses in retirement is one of the most pivotal steps in securing a financially stable and fulfilling post-career life. This involves a comprehensive evaluation of a range of factors, such as estimating your basic needs, including housing, utilities, and healthcare, and accounting for potential lifestyle changes. Consideration should also be given to discretionary expenses like travel, hobbies, and entertainment. Additionally, factoring in inflation and unforeseen circumstances ensures a realistic financial forecast. By thoroughly projecting your living expenses, you empower yourself to make informed decisions, allowing for a more seamless transition into retirement and the ability to enjoy your golden years with confidence and peace of mind.

5. Meet with Your Financial Advisor:
   Your financial advisor is a crucial partner in crafting a financial plan. Share the gathered information to run scenarios based on varying market conditions. This collaborative effort ensures that you are well-prepared to navigate the twists and turns of retirement, increasing the likelihood of a fulfilling and financially secure post-career life.

Conclusion:

As you embark on this exciting journey towards retirement, we believe meticulous planning is your key to success. We believe that by addressing these critical considerations well in advance, you'll not only transition smoothly into retirement but also set the stage for a prosperous and fulfilling post-career life. Remember, the time to prepare is now, ensuring that the golden years are truly the best years of your life.

Disclosures

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.