Planning for retirement doesn’t stop the day you quit working. Even once you have reached retirement age, it is still critical to ensure you are doing everything you can to ensure your financial wellness during retirement. That way, you can feel more confident in meeting your goals. As you near retirement, there are a few financial considerations to take into account.

Consider Other Financial Tools

One financial tool you might want to look at is your life insurance policy. As you get older, your needs change, and you may find that it is in your best interests to do something else with your policy. It’s a common misconception that a simple term policy, with no cash value, isn’t very useful if you no longer need the coverage. That couldn’t be further from the truth, as more older Americans have found the value in selling their policies through life settlements. When you sell the policy to someone else, you won’t have the coverage anymore, but you will have a lump sum that can help you fund your retirement goals.

Imagine Your Budget Without You Working

Even with your investments, you won’t be bringing in as large of an income during retirement as you are while working full time. Think about what you will do during retirement, whether you want to be a business owner, volunteer, or spend more time with family. Envisioning what retirement might look like will help you get advice that will best fit your needs. Dreaming about these days now can help you plan better. Imagining yourself not working can also help you save as much as you need. You can find planning calculators that will help you figure out how much you will need to have in your account so you will know how much you need in your accounts.

Using IRAs

You don’t have to limit yourself to a 401(k), especially since it has limitations. You can use Roth IRAs as well so you can withdraw the money free of taxes once you are retired. It’s a good way to reduce the impact of potential future tax hikes, which can have negative affects once you are retired. You might consider traditional IRAs as well, since these can help you broaden your plans, giving you greater control over investments. You might have access to ones your 401(k) plan does not allow you to access, like real estate or certain market funds.

Allocating Assets Wisely

There are many places to find financial advice but be sure that you are not being misled. Avoid allowing the swings of the market to determine the way you decide to allocate your portfolio. Determining the right way to allocate various investments, like cash, stocks, and bonds, is a critical way to ensure you are getting as much interest as possible. Having a diverse portfolio allows you to easily weather changes in the market, keeping the investments growing. Consider spreading them out over a wide range of sectors so market changes do not affect you as much. It’s a good idea to set aside certain, fixed amounts aside instead of basing them on market conditions.