There are a few key things you should do to get your financial affairs in order before retirement. Paying down your credit cards, writing a will and power of attorney, and downsizing to a smaller house are all important steps to take. Let’s dive into each one a little further.
Pay Down Credit Cards
One of the first things you should do to get your finances for retirement is to pay down your credit cards. Credit card debt can be a major burden, especially if you’re on a fixed income. According to Symple Lending, if you can pay off your credit cards before you retire, you’ll be in good shape.
There are a few different ways to approach paying down your credit cards. There are different ways to pay off your debt. You can either pay off each one separately, starting with the credit card with the highest interest rate, or you may focus on paying off the card with the lowest outstanding balance first. Whichever method you choose, stay consistent and make regular payments until the debt is paid off.
Write a Will and Power of Attorney
A will and power of attorney are two legal documents that are important to have in place when getting your financial affairs ready for retirement. A will outlines how you want your assets to be distributed after you die. A power of attorney is a document that names someone else to manage your finances if you cannot do so yourself.
If something happens to you, having a will and power of attorney in place will make sure that your loved ones are taken care of. This will give you peace of mind to know that everything is in order. If you don’t have a will or power of attorney, now is the time to create them. You can either do it yourself at a website, like LegalZoom, or consult with an attorney to help you.
Downsize To A Smaller House
One last thing to consider doing as you get your financial affairs for retirement is downsizing to a smaller house. This can be a big decision, but it could save you money in the long run. Housing costs are one of the biggest expenses people have, so downsizing to a smaller house can free up some extra cash each month. Plus, it can also be less work to take care of a smaller house.
Wrap Up
There are a few key things you should do to get your financial affairs in order before retirement, such as paying down credit cards, writing a will and power of attorney, and downsizing to a smaller house. Taking these steps will help reduce stress and give you peace of mind during retirement age while also saving some money along the way! What other ways have helped Americans near retirement get their finances in check? Let us know below!
