Preparing yourself mentally for retirement is a sound idea. Pre-retirees have the time to prepare themselves financially for their retirement day. Pre-retirees are those who are in their 50s and 60s and are going to retire a few years down the line. For pre-retirees, this is their last chance to take account of all the investments that they will require upon retirement.

Investment ideas for pre-retirees
Now that you are planning to retire, it is time to make sound investments that will make retirement a breeze.

Catch up and match
Catch-up contributions to government-backed 401 (k) and Roth IRA can substantially save you from heartburn in the later stages of retirement. Invest up to $6,500 annually in IRA and $6,000 in 401 (k) to make it up to $24,500. Married pre-retirees can double their contributions to sock up for later.

Steer clear of debts
Credit card debts, student loans, car and house mortgages can eat into your savings, leaving you with very little money for yourself. Now is the time to get rid of any debts. When all the debts are cleared, you can think clearly about your next goals and move ahead.

Health plan
Make investing in health a priority now. Medicare is an option, but not until you are 65 years of age. Moreover, Medicare does not cover all expenses. Check if you are eligible for insurance under the Obama Care Act. Explore your healthcare options with your financial advisor.

Insurance
While you are a pre-retiree, reevaluate your life insurance policies in terms of the expenses insured under your plan and check whether you need another life insurance policy to cover uninsured expenses. As you near your retirement age, you may qualify for fewer insurance options.

Reallocating investments
It is time to shuffle your investments. Your investments should be planned in such a way that the rising inflation does not eat into your savings. Experts suggest that pre-retirees should opt for conservative funds that offer them security and stability without any risks.

Social security benefits
Pre-retirees should not depend on social security benefits as those are meant to supplement your income, not substitute it. When is the right time to claim your social security benefits? Some pre-retirees wait till retirement age, whereas others prefer to receive these benefits early.

Plan for retirement
Planning for retirement is a kind of investment that you will have to work on. Making a retirement income plan in your pre-retiree days will keep you ahead of your goal. Chart up a plan that will minimize your tax burden as you approach retirement. If you are planning to stay in a retirement home, arrange for funds that will come in handy during an emergency. Retirement is also the time to fulfill any unfulfilled dreams. If you are looking to go on a foreign trip or planning to buy a boat or RV (Recreational Vehicle), start planning now.

Pre-retirees have so much to look forward to as they inch toward retirement. Appropriate planning is the first step in the right direction.