Goal: Enjoy retirement
Assuming you've done your retirement planning, it's time to enjoy life. "Just make sure to live on your budget and avoid spending frivolously," says Woods. Additionally, consult a financial planner on how to best withdraw your retirement savings. "You want to manage this from a tax perspective and avoid changing tax brackets [by withdrawing more money] unless you need to," says Bird.
Goal: Travel
If around the world in 80 days is a goal, then hopefully you will have planned for it. To help fund trips, some people opt to downsize or rent their house after their kids have left home, says Tillmann.
Goal: Downsizing
The kids are grown and you don't need as much space as you once did, so you might decide to downsize to a smaller house or even a condo. Consider your lifestyle when making the choice. "If you're a snowbird, you may prefer the idea of a condo where you can just go away for a few months," says Woods. Also remember that as you'll have less space, this might be a good time to donate family heirlooms to your children. As you'll be buying a smaller place, you'll presumably have money left over from the sale of your larger home. "What better time is there to review your savings and future income than when you go to sell your home?" asks Tillmann.
Going off the rails
Be careful of the temptation to spend your retirement money too quickly. "People in their 60s often rationalize spending money by saying they've worked hard all their life and they deserve this," warns Bird. On the other hand, you can become too tightfisted and not enjoy what you've worked for, says Woods.
Best financial bet
Create an estate plan with a professional, so it will be passed on according to your wishes.
What to do with your income tax return?
Quarterly installments (on investment income, for example) are geared so that this age group rarely sees a significant tax refund.
Read more: 30 simple ways to improve your finances.
Page 5 of 5
