The Last Five Years of Your Career: Prepare for Retirement

💰Compound interest begins to significantly impact your wealth in the last five years of your career.

💡The last five years provide an opportunity to estimate and plan for your retirement expenses.

🏠Take advantage of your higher income during this period to pay for big expenses in advance.

🩺If possible, schedule necessary medical procedures before retirement while still covered by employer health insurance.

🌟Use the last five years to envision and plan for your ideal retirement lifestyle and activities.

Why are the last five years of your working career important for retirement?

—Compound interest becomes significant, you gain a clearer understanding of retirement costs, you have higher income to pay for big expenses upfront, you can take care of necessary medical procedures, and you can start dreaming and planning for your retirement lifestyle.

How does compound interest impact your wealth?

—Compound interest grows exponentially over time, and in the last five years of your career, it can significantly increase your retirement savings.

What should you do with your higher income in the last five years?

—Take advantage of your higher income to pay for big expenses upfront, such as home repairs or car purchases, to reduce financial burden in retirement.

Should you schedule medical procedures before retirement?

—If possible, schedule necessary medical procedures while still covered by employer health insurance to minimize out-of-pocket expenses in retirement.

Why is it important to start dreaming and planning for retirement in the last five years?

—By envisioning and planning for your retirement lifestyle and activities, you can make the transition smoother and ensure a fulfilling retirement.

00:00The last five years of your working career are crucial for retirement preparation.

00:36Compound interest starts to pay off in the last few years before retirement, leading to significant growth in your portfolio value.

03:13Use the last five years to estimate and plan for your retirement expenses, understanding what your retirement lifestyle will actually cost.

04:42Take advantage of your higher income during this period to pay for big expenses upfront, reducing financial burden in retirement.

05:50If possible, schedule necessary medical procedures before retirement while still covered by employer health insurance.

06:26Start dreaming and planning for your retirement lifestyle, envisioning what activities and experiences you want to have during this phase of life.