We grew up learning the basic three R’s to get us started in life. Here are three R’s to pay attention to as you wind things down.
Get Real about your retirement.
Have you figured out how much income you will need and where it will come from? Is your retirement age realistic? How long might you live in retirement? You have to be able to answer these questions before you retire.
Resist the desire to dump all of your stocks. We have just had the worst start of a year, financially speaking, since 2008. Panic might lead a number of investors to think they have to get out of the stock market fast. Step back and don’t sell so fast. Over the long term, stocks have outperformed other types of investments. Stocks generally keep investors ahead of inflation. These two factors are very important in retirement.
Re-evaluate your life insurance. Did you base your original life insurance purchases on providing for your family? Paying off your mortgage? Covering final expenses? As we reach retirement, we do not have the obligations we had. Hopefully, your kids are supporting themselves, and most retirees have paid off their mortgages. Lack of these two expenses may mean that you don’t need as much coverage as you once did. Look at lowering the face value of your coverage or converting your policy to a paid-up life insurance policy.

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