Imagine heading out for a weekend camping trip. You wouldn’t just grab your tent and hit the road without making sure you had the essentials, right?
Financial preparedness is a goal we all strive for, and the challenges that come with it are universal—not just for retirees. However, it becomes even more crucial as you approach retirement. It’s essential to have an emergency fund that can cover three to six months of expenses. Life is unpredictable, and whether it’s an unexpected medical bill or a home repair, having a solid emergency fund acts as your safety net, regardless of your age. Don’t get discouraged if you need to dip into it—that’s what it’s there for. Just make sure you have a plan in place to replenish it.
Regular review of your retirement account(s) is also key, including your pension, 401(k), IRA, Roth IRA or any combination of these. Keep a close eye on your investments, making adjustments to your strategies as needed to stay aligned with your risk tolerance and retirement timeline. If you need help with the allocation of your investment funds, consider reaching out to our partner Edelman Financial Engines to learn about their services. It is as simple as clicking "get advice" from your Eder Retirement Plan online portal. Take the time to assess your accounts to maximize tax advantages, and confirm that your beneficiaries are up to date and properly designated. Verify your contributions—and your company’s—are on track to meet your goals. It’s also a good idea to review your account details and confirm your contact information is accurate, so you don’t miss important updates or statements. Taking these proactive steps will help keep your financial future on course, giving you peace of mind.
Beyond financial preparedness, managing your health is crucial. Retirement often brings changes in healthcare. Having a solid plan ensures you’re never caught off guard. Refill your medication so you have enough on hand to last a week or two in case of emergency. Assembling a kit with essentials like water, non-perishable food, and first-aid supplies—including backup power solutions for any medical devices—will help reduce panic in the event of a crisis. Don’t forget to include food and other necessary supplies for your pets in your emergency plan.
Another key aspect of preparedness is ensuring that important documents like insurance policies, wills, and financial documents are stored securely in one place, allowing you and your loved ones to navigate difficult situations with ease. It’s also a good idea to consider setting up a financial and/or healthcare power of attorney, so trusted individuals have the legal authority to act on your behalf if needed. Remember, being prepared is not just about what you have, but what you know and how you react. These proactive steps make a big difference over time and can provide security during life’s more troubling times.
