When approaching retirement, getting your finances organized is one of the first steps you should take.
By: Kathy Longo, CFP®, CAP®, CDFA
Getting a clear financial picture can help ease the transition into retirement because, at the very least, you’ll know what accounts you will be drawing from, where they are being managed, how your investments can continue to generate income for you, and what tax liabilities they may impose. It requires discipline and clarity to keep your finances organized before and during retirement.
If you are like most of your contemporaries, you have held two or three or more positions at different companies over the course of your career. As a result, you likely have several 401(k) accounts to consider as well as a SEP, Simple IRA, 403(b) account, deferred compensation plan and/or a pension. It’s important to make a list of your accounts and, if you are married, a separate list for each spouse. It also helps to make an additional list with any non-taxable accounts like a Roth IRA or Designated Roth.