<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "You are now one year away from retirement. First, determine when you are going to take social security. You can apply for benefits as early as age 62 and, if you retire earlier, you may need this money to pay. your health insurance and other expenses.If you are waiting for the retirement age – 66 or 67 for most baby boomers – you will receive 100% of the benefits you have earned. your payments will increase by 8% per year until the age of 70. "data-reactid =" 22 "> You are now one year away from retirement Let's start with the following question: Determine when you are going to take Social Security You can claim benefits as early as age 62. If you take early retirement, you may need money to pay for health insurance and other expenses, but keep in mind that your benefits will be reduced permanently by at least 25%. retirement age – 66 or 67 for most baby boomers – you get 100% of the benefits you've earned, then wait to claim and your payments will increase by 8% per year until the age of 70.

<h3 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "SEE ALSO: Countdown to retirement | 10 years away | 5 years later"data-reactid =" 23 "> SEE ALSO: Countdown to retirement | 10 years away | 5 years later

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Simplify your finances.You may have collected several bank and brokerage accounts, IRAs, 401 (k) s or other retirement accounts en route (if you have lost an account, look for it at missingmoney.com or unclaimed.org.) "data-reactid =" 24 "> Simplify your finances Perhaps you have already accumulated several bank and brokerage accounts, IRAs, 401 (k) s or other retirement accounts along the way. (If you lost sight of an account, look for missingmoney.com or unclaimed.org.)

Consolidate small accounts to help track assets, reduce paperwork and potentially save money. "You may be able to benefit from economies of scale by aggregating your account with a single provider," says Christine Benz, personal finance manager for Morningstar, an investment research firm. "You could, for example, be able to reach the threshold of cheaper expense ratios." Simplifying finances will also make it easier for someone else to manage your business, if necessary.

Talk to human resources. Your HR department can help you avoid leaving money on the table when you go out for the last time. For example, you may have to work until a specific date to qualify for your annual bonus, profit sharing payment, or 401 (k) counterparty. You should also ask if you will be paid for the unused vacation days (otherwise, start planning your vacation now).

Find out about the health benefits that society offers to retirees, especially if you plan to retire before you qualify for Medicare. If you want to leave your savings in your 401 (k) instead of transferring them into an IRA, determine if you can receive distributions when you need them. Some companies allow withdrawals from a plan on a monthly, quarterly or as needed basis, but may charge a transaction fee. Others ask you to either leave your money in the plan or withdraw everything at the same time.

If you qualify for a traditional pension, consider your monthly payment options as opposed to a lump sum payment. "I can not tell you how many people come to see me in retirement and say: 'I only have two weeks to decide how I will take my pension. what I do?" "says Richard Kahler, a CFP from Rapid City, S.D." The time to look at this is in the year, so you do not have to panic.

You will also be able to determine if working for a year or two will significantly increase your pension. It may not be the case if you receive it in a lump sum, says Willis Towers Watson's Glickstein. Interest rates are used to calculate the value of lump-sum pensions, and when these rates rise, their value declines. Now that rates are rising, working another year can not raise a lump sum, or even lower the amount, says Glickstein.

Do your Medicare homework. It is difficult to navigate in Medicare, and the barrage of insurance that you will get at the age of 65 just adds to the confusion. Start educating yourself about Medicare and how it works to avoid coverage gaps when you leave your job. Social Security beneficiaries are automatically enrolled in Medicare Parts A and B when they reach the age of 65. However, people who push Social Security back to retirement age or later – which is a good idea if you are still working – are on their own.

<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Most people do not pay premiums for Medicare Part A, which covers hospital care, which is why it usually makes sense to register at age 65, socialsecurity.goveven if you are still working and are covered by your employer's insurance. If you are covered by your employer's plan, you may want to withdraw from Part B, which covers doctor's visits and outpatient services and charges you a monthly premium. Similarly, you may want to wait to sign up for Part D, which covers prescription drugs, until you quit your job. Check with your employer to make sure its coverage is trustworthy – which means it's at least as good as Medicare's. Otherwise, you incur penalties when you sign up for Part D. "data-reactid =" 31 "> Most people do not pay premiums for Medicare Part A, which covers hospital care. generally meaning to register at age 65, at socialsecurity.goveven if you are still working and are covered by your employer's insurance. If you are covered by your employer's plan, you may want to withdraw from Part B, which covers doctor's visits and outpatient services and charges you a monthly premium. Similarly, you may want to wait to sign up for Part D, which covers prescription drugs, until you quit your job. Check with your employer to make sure its coverage is trustworthy – which means it's at least as good as Medicare's. Otherwise, you incur penalties when you sign up for Part D.

The story continues

Once you leave your job, you will have up to eight months to sign up for Part B. But if you want the coverage to start when you retire, plan to deposit it at least six weeks before your last day. make sure you re covered.

<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "You will need to decide whether you want to sign up for Medicare Advantage or Medicare Part B plus Part D and a medigap plan – an additional policy that covers the copayment, deductibles and other costs that traditional Medicare does not support Medicare Advantage plans offer medical coverage and drug coverage through a private insurer that has its own network of doctors. Medicare Plan Finder to research plans in your area and find out if your doctors are part of a plan network. You can also use this tool to search for plans from Part D. Medicare also offers this tool you can use to search for medigap plans. "data-reactid =" 37 "> You will need to decide if you want to sign up for Medicare Advantage or Medicare Part B plus Part D and a medigap plan – a supplemental policy that covers participation fees and deductibles. provide medical coverage and drug insurance by a private insurer with its own network of doctors. Medicare Plan Finder to research plans in your area and find out if your doctors are part of a plan network. You can also use this tool to search for plans from Part D. Medicare also offers this tool you can use to search for medigap plans.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Buy an immediate or deferred annuity (or not) If your employer does not offer traditional pension, you can choose an immediate solution and buy an immediate annuity.With an immediate annuity, you give an insurance company a lump sum in exchange for a monthly salary for the rest of your salary, life (and the life of your spouse, in the case of a joint and survivor annuity) or for a specific number of years One of the strategies is to calculate your fixed retirement expenses, such as utility bills, mortgage insurance and auto insurance, and to buy a You can get an idea of ​​the amount you will have to spend to get a specific monthly payment to immediateannuities.com. "data-reactid =" 38 "> Buy an immediate or deferred annuity (or not) If your employer does not offer a traditional pension, you can choose to get involved in DIY and buy an immediate annuity. annuity, you give a lump sum to an insurance company in exchange for a monthly pay check for the rest of your life (and that of your spouse, in the case of a joint and survivor annuity) or for a number of years to calculate your fixed retirement expenses, such as utility bills, mortgage and auto insurance, and purchase an annuity that will cover these expenses.You can get an idea of ​​how much you will have to spend to obtain a monthly payment specific to immediateannuities.com.

Or you could buy a deferred income annuity in your 50s or 60s. Deferred annuities provide a steady income in recent years. payments begin at least 10 years after purchase. They are much less expensive than payout annuities, but unless you register for survivor benefits or premium refunds, which will reduce your payments, your heirs will not receive anything if you die before the payment begins.

Portfolio balance sheet, 1 year

<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "There is still a year, the mix for a The portfolio to moderate risk is composed of 50% to 60% of stocks, the rest being composed of bonds.If you feel nervous about the stock market, consider transferring money into two funds. More stable stocks, such as Vanguard Equity Income (VEIPX) or American Century Equity Income (TWEIX). Data from both funds held up well in past recessions. "Data-reactid =" 41 "> At just one year, the composition of a moderate risk portfolio is composed of 50% to 60% shares, the rest being composed of bonds. If you feel nervous about the stock market, consider moving money into two more stable equity funds, such as Vanguard Equity Income (VEIPX) or American Century Equity Income (TWEIX). Both funds have held up well in past recessions.

<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Now is the time to develop a" bucket "system of protection against one of the most important risks you could face as a new retiree: being forced to sell stocks that have lost value after a plunge in the stock market to pay your bills. The first compartment contains enough money for living expenses that will not be covered by Social Security, a pension or a pension during the first two years of your retirement (three years if you are conservative) The second compartment contains the money you will need over the next 10 years and is expected to be invested primarily in short- and medium-term bond funds, such as Vanguard Core Bond (VCORX). The third compartment is money you will not need until a distant future, and you can invest in diversified stock funds. "Data-reactid =" 42 "> Now is the time to develop a" compartment "system to protect yourself from one of the As a new retiree, you run the greatest risk: being forced to sell securities which have lost value after the plunge on the stock market to pay your bills, basically you divide your retirement nest into three categories, depending on your needs.The first bucket contains enough money for living expenses that will not be not covered by Social Security, a pension or annuity during the first two years of your retirement (three years if you are a Conservative) you will need the money you will need over the next 10 years and should be primarily invested in short- and medium-term bond funds, such as Vanguard Core Bond (VCORX). The third compartment is the money you will not need until a distant future and you can invest in diversified stock funds.

<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "With the compartmental system, if the stock market plunges, you will have enough money and bonds to not touch your shares for more than ten years – they will have plenty of time to recover (see Make your money last until retirement). Once you retire, review your basket every year to see if it needs to be replenished from the longer term buckets. "Data-reactid =" 43 "> With the umbrella system, if the stock market falls, you will have enough cash and bonds that you will no longer receive your shares for more than ten years – they will have plenty of time to recover (see Make your money last until retirement). Once retired, review each year your basket to determine if it needs to be replenished from the longer term buckets.

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