6. When to pay taxes. After decades of deferring taxes on your retirement savings using 401k's and traditional individual retirement accounts, the tax bill becomes due upon withdrawal in retirement. The timing of these withdrawals could affect how much you pay in taxes.
"Try to balance out your withdrawals from taxable and nontaxable accounts each year so you are not kicking yourself into a higher tax bracket at some point," says Henderson. Taking a large IRA withdrawal in a single year could result in an oversized tax bill. Withdrawals from traditional retirement accounts become required after age 70 1/2.
7. Where to live. Once you are no longer tethered to a job, you can live anywhere that suits your tastes and budget. Moving to a place that costs less than where you live now can boost your standard of living and help stretch your nest egg. You could also test out a place with better weather or more opportunities for recreation, or move closer to family.
8. Whether your home should help finance retirement. A paid-off mortgage can help finance your retirement because it eliminates one of your biggest monthly expenses. In some cases, downsizing to a smaller home or moving to a place where the cost of living is lower can give a significant boost to your nest egg.
"Especially if you live on the East or West Coast, where housing can be extremely expensive, you may have an opportunity to downsize and realize quite a bit of the appreciation you had in your real estate," says Henderson.
9. Whether to keep working. A part-time job is increasingly common in the retirement years. Many people downshift to a job with shorter hours and less responsibility before retiring completely, while others return to work after a break. Income from a part-time job can allow you to withdraw less of your retirement savings each year. Some people also find jobs they enjoy that allow them to interact with former colleagues, consult on the occasional project or learn a new skill.
10. What you will do. Retirement isn't only about quitting your job. It's an opportunity to have complete control over how you spend your time. Make sure you have a few ideas about how you will fill the eight or more hours per day you previously spent working and commuting. Some people miss the sense of purpose and friends that their jobs provided for them, while others finally have the time for hobbies and projects they have been waiting years to tackle.
