On the Job

Retirement plans at your old employer need to be reviewed. Should you leave the 401(K) or SIMPLE IRA with them, or roll them over to an IRA outside of the employer? Be sure you do not withdraw the funds before age 59 ½. Otherwise, you will be facing tax penalties as well as paying income taxes on the funds withdrawn. A trustee to trustee direct roll over to the new plan is key to avoiding unexpected tax consequences.

Life and disability insurance continue to be important as you are getting close to retirement age. If you could not work, how would your bills get paid? If your employer does not provide disability insurance, you should consider purchasing a policy on your own. Most employers do provide some life insurance, but that may not be sufficient to provide for your family, especially if you have a lot of debt, should you die during your peak earning years.

How many more years do you want to work? These last years prior to retirement are typically the peak earning years. If possible, max out your retirement contributions at work.