If you are three years out from retirement and you are already beginning the final stages of planning, you should be proud of yourself. You are well ahead of the majority of individuals who simply think that retirement adjustments are too difficult, adopting a fatalistic view instead of trying to take control. Below are just a few of the things that you may have missed in your preparations.
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Divide your assets into short-term and long-term groups. The main difference between these two groups is that the short-term assets can be sold outright if need be to cover expenses. Under no circumstances should you sell your long-term assets. These are assets that you are planning to keep in order to pass on to your children or relatives, or assets that have the ability to bear interest to raise your overall net worth. These can be assets such as renewable government bonds all the way to a family business.
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Look for great values on real estate. Three years is more than enough time for the market to see a cycle of buyer's market versus seller's market. You still have time to wait for a great price for a new home if you are looking to move, so do not make any moves too hastily. Employ the services of a trusted real estate agent to help you monitor the markets; however, remember that they do not have access to any information that you cannot attain yourself through the use of the Internet.
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Plan annuities so that your money will never run out. Many individuals who are about to retire do not prepare for the contingency that medicine and better lifestyle is making people live longer! They are not prepared for the idea that they may outlive their money. Fortunately, putting your money into various annuities now will ensure that does not happen; plus, you will be able to build a bit of interest before you begin taking money out again.
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Build a monetized hobby. You now have the ability to make money doing things that you enjoy instead of working a day job for a paycheck. However, businesses take time to build. Make sure that you set aside time to build your business, such as if you are planning on consulting, (and three years is plenty of time in most industries) so that you can not only do things that you enjoy, but actually get paid for them as well. This will help to preserve your asset base. The less that you have to tap into that asset base in order to support your day to day lifestyle, the better off you will be. Your money will continue to accrue in value, giving you even more financial leverage if you do decide to tap into your assets or by providing a better lifestyle for your family if you decide to pass it on.
