A Five-Point Retirement Inspection

Regardless of your age or retirement-planning stage, it is a good idea to consider performing a little regular maintenance on your retirement plan at least once a year to help avoid any unwelcome surprises. Here are some suggestions:

• Social Security statement: Each year, your Social Security statement should arrive in your mailbox about three months before your birthday. When your receive it, check both earnings history and anticipated benefit amounts. If you have any questions or identify any errors, contact Social Security immediately at 1-800-772-1213. It is always wise to have your W-2s or tax returns on hand for the years in question.



• Beneficiary designations: As life changes, so might your planning needs change. Your beneficiary designations not only affect your survivors, they can also affect your family’s overall tax obligations. If necessary, consider reviewing the rules with a tax advisor or estate-planning attorney to ensure that your retirement plan beneficiary designations remain true to your wishes.



• Health-related costs: Health care costs can change dramatically as you age. While Medicare will cover some costs during retirement, it by no means is designed to cover all of them. Review your options long before you celebrate retirement. A great deal of up-to-date information about Medicare is available at www.medicare.gov. Check out this government-sponsored resource.



• Overall investment strategy: Review your asset allocation strategy to make sure it stays on track with your changing needs and financial circumstances. For more information, see our Fundamental Focus article.



• Personal inflation rate: This refers to the impact that your buying habits have on your personal rising cost of living each year. It depends on how much you spend on groceries, travel, energy costs, health care, etc. Understanding your personal inflation rate will help you plan for your retirement income needs and may help you make certain adjustments, if necessary. For help with the understanding of inflation and how it might impact you, the Federal Reserve Bank of Minneapolis sponsors a Consumer Price Index calculator. Click on the following link. It will take you to that calculator. http://woodrow.mpls.frb.fed.us/Research/data/us/calc/

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