7 Things to Do Before Retirement

Retirement sneaks up on people faster than most expect. One day you’re focused on your next promotion, and the next you’re thinking about Social Security, downsizing, and whether you’ll have enough to last.

Preparing well means more than just saving money; it’s about setting up systems that let your money work for you long after you stop working for it. Here are seven smart things to do before you retire that can help you build absolute freedom, stability, and a monthly income for life.

1. Get Clear on Your Monthly “Freedom Number”

Before you retire, you need to know your Freedom Number, the amount of monthly income you need to live comfortably without dipping into savings.

Start by adding up your core expenses:

• Housing (or property taxes if your home’s paid off)
• Food and utilities
• Healthcare and insurance
• Transportation
• Entertainment or travel

Now add a 10–15% buffer. That’s your actual monthly target. Once you have that number, you can plan investments that produce predictable cash flow to match or exceed it. Many investors find that traditional pensions and 401(k)s fall short of providing consistent income, especially when markets fluctuate.

2. Pay Off High-Interest Debt, But Keep Productive Debt Working for You

Carrying high-interest credit cards or personal loans into retirement is like trying to sail with an anchor tied to your leg.

Before you retire, aim to eliminate any bad debt that drains your cash flow. But don’t confuse that with productive debt, loans attached to income-producing assets.

Some investors use secured investments that create steady interest income backed by real property. These can help you generate more monthly income while keeping risk manageable. Think of it as putting your money in the role of the bank, earning interest instead of paying it.

3. Rebalance Your Portfolio for Income, Not Just Growth

Most people spend their working years focused on growing their net worth. But in retirement, the game changes; it’s all about consistent income.

This is where many investors start exploring cash-flowing alternatives to the stock market. Dividend stocks, rental properties, and fixed-income assets can all help, but some people prefer options that don’t involve tenants, toilets, or volatility.

That’s why many soon-to-be retirees begin studying how private lending, real estate debt, or notes can create monthly income streams backed by tangible assets. It’s a way to preserve capital and still get paid regularly.

4. Build a Reserve Fund That Buys You Time

Even if your investments generate income, things can happen, such as delayed payments, unexpected expenses, or temporary market shifts.

A reserve fund is your cushion. Ideally, it covers 6–12 months of living expenses and sits in an easily accessible account. It gives you flexibility and prevents you from selling assets at a bad time.

Some investors even hold a reserve fund inside a self-directed retirement account. That way, if one of their income streams slows temporarily, they can bridge the gap without tapping personal savings or taking early withdrawals.

5. Learn How to Generate Income from Real Assets Instead of Paper Promises

By the time most people reach retirement age, they’ve realized something: Wall Street doesn’t always deliver predictability. Stocks can swing wildly, and interest rates can crush bond yields.

More investors are shifting to Main Street strategies, owning or controlling assets that pay them directly. Real estate, private lending, and similar investments offer more transparency and control.

For example, buying a note, the debt secured by real estate, lets you collect the payments a homeowner makes each month. You’re not speculating on property values; you’re earning a steady return on the loan. It’s a way to own the cash flow without owning the house.

6. Use Your Retirement Accounts Strategically (and Tax-Smart)

If you have an IRA, Roth IRA, or 401(k), you might not realize that you can use these accounts to invest in more than just mutual funds.

With a self-directed IRA or Solo 401(k), you can invest those retirement dollars in alternative assets that generate consistent cash flow. These investments can grow tax-deferred or tax-free, depending on your account type.

Imagine receiving monthly deposits into your retirement account from secure investments, rather than waiting for unpredictable market gains. It’s one of the most overlooked strategies for turning your retirement savings into income you can count on.

7. Set Up Systems So Your Money Keeps Working While You Rest

Retirement should be simple. The best time to build passive systems is before you actually stop working.

Set up automatic transfers, dividend reinvestments, and clear tracking for your income-producing assets. The goal is to spend less time managing your money and more time enjoying the life you’ve built.

This is also the perfect time to create an income plan that runs on autopilot, with monthly payments backed by tangible assets and handled by professional servicers if needed. You want your portfolio to function like a reliable machine, paying you while you sleep, travel, or spend time with family.

Bringing It All Together

Preparing for retirement isn’t about chasing the highest return; it’s about building the most reliable one.

The people who feel the most secure in retirement aren’t necessarily the ones who made the most money. They’re the ones who set up steady, predictable income streams and let compounding do the heavy lifting.

By eliminating bad debt, focusing on income, and learning how to earn from tangible assets, you can create a lifestyle that pays you consistently for years to come.

It’s about shifting your mindset from working for money to having your money work for you. That’s the key difference between surviving retirement and thriving in it.

Example Roadmap to Take Action