Questions You Should Ask Your Financial Planner Before You Retire

When you find yourself approaching retirement, you'll probably start thinking about all of that time you've spent with your financial planner. Don't think that hitting retirement means that you won't need his or her services anymore. In fact, as you prepare to retire, this is a crucial time to schedule another meeting with your financial planner to evaluate your situation. Here's a look at a few things that you should discuss before you actually retire.

When Will You Draw Retirement Benefits?

One of the most important decisions you need to make is when you're actually going to start drawing benefits from your retirement accounts. Keep in mind that this transition can be a difficult one, particularly if you've been contributing to those accounts for some time. Talk with your financial planner about the effect that this will have on your account balances so that you know exactly what to expect.

If you're accustomed to watching the balance grow, it can be startling the first few times that you see the balance drop. Make sure that you're prepared for this by talking with your financial planner about how your balance will change. He or she can give you a comprehensive report detailing the balance changes that you'll see with each payment. This may allow you to be better prepared as your payments are issued.

Deciding when you'll draw benefits is also important for tax implications. There are some retirement contributions that may be taxed differently depending on your age at the time of retirement. Your financial planner will help you understand the finer details of the tax liabilities so that there are no surprises along the way.

How Will Your Living Situation Need to Change?

Your financial planner can also help you look at your current living situation, including your utilities, maintenance and other costs. This is important to evaluate before you retire, because you may find that you need to sell your home and downsize into a condominium or a townhouse instead to reduce your costs.This could be particularly beneficial if your home is in need of costly repairs or needs a remodel.

What Kind Of Budget Changes Should You Make?

Your retirement fund payments will likely be different than your current income, and you're going to want to stretch that fund as much as possible. To do this, you'll want a solid budget in place so that you know who much you're spending each month. A financial planner could help you build a solid spending plan and evaluate your current investments to find ways to help you grow your savings if possible.

With these tips, you'll be better prepared for financial success when you decide to retire. If you're thinking about making that decision, call your financial planner today for a pre-retirement conversation about these issues.