Is the finish line in sight? Are you imagining trading work for a little “me time”? Maybe a tropical oasis is calling your name. If so, congratulations. We hope you enjoy your upcoming retirement.

Of course, there are a few things you will want to do before you finish the race and sip Mai Tais. Here are some tips for those of you who are planning to retire in 2020.

Schedule Your Time

It sounds counterintuitive. After all, isn’t the whole point of retiring to NOT have to follow a schedule? Trust us. You’ll be happier if you do.

At least plan the first few months of your retirement. Get into routines of watching the grandkids, travelling, pursuing your favorite hobby. Try a new class or activity. This is your chance to do the things a full time job did not permit you to do.

Start Living on Your Retirement Budget

Did you know that most people actually spend more in the first few years of retirement? A lot of people simply assume they will be spending less. After all, you won’t have to travel to and from work every day.

But all that new free time on your hands brings with it temptation.

If you haven’t made a detailed retirement budget, do that now. Then spend the next few months living on it. If it’s not enough, talk to your financial adviser about making some adjustments to generate revenue. If it’s more than you need, consider withdrawing less from your investments to stay in a lower tax bracket.  Minimizing your Adjusted Gross Income (AGI) may also reduce your Medicare premiums down the road.

Plan for the Long Haul

You might be retired for longer than you think. 40.6 percent of all households where the head of the household is between 35 and 64 are expected to run out of money in retirement. Take an inventory of all of your accounts and decide if your investments are organized in a way that can sustain you for the years and decades down the road.

With the new tax laws, it might make sense to complete a Roth conversion on some of your traditional IRA income. This will help you pay less in taxes and help you avoid large required minimum distributions (RMDs) when you hit 70.5.

Talk to Your Advisor

If you don’t know the answer to all your retirement questions, a seasoned adviser is your best resource to get your retirement squared away. You don’t want to get to the finish line only to have to drop out of the race and go back to work because you weren’t prepared. Speaking with an adviser will allow you to retire with confidence.


The opinions voiced in this article are for general information only and are not intended to provide specific advice or recommendations for any individual.

Traditional IRA account owners should consider the tax ramifications, age and income restrictions in regards to executing a conversion from a Traditional IRA to a Roth IRA. The converted amount is generally subject to income taxation.

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax adviser.

This article was originally published in the Pioneer Press. You may view the article here.

Peg Webb

Peg Webb

Senior Vice President, Financial Advisor & Host of the “Your Money” radio show

Series 7, 53 & 63 Securities Registrations,1 Series 65 Advisory Registration,† Insurance License Peg was attracted to the financial services industry early in her career. She feels fortunate to be able to use her 30 years of in-depth knowledge working alongside Preston, the Roundtable™ and their staff to prepare clients for retirement. A lifelong learner, she enjoys collaborating with her team to stay on top of the best practices regarding comprehensive planning....Read More