Buy These 5 Things Before You Retire, According to Kevin Lum

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Preparing for retirement isn’t just about saving money — it’s also about making the right purchases ahead of time. Some items are worth buying before you stop working so you can avoid higher costs or financial stress later. According to a YouTube video by Kevin Lum, certified financial planner (CFP), before retirement, you should secure the below five key things.

Also Lum said you should sell these five things before retiring.

Get Health and Dental Work Done

When speaking to his clients about retirement, Lum mentioned that many were glad that they took a couple of years before retiring to get a lot of their much-needed medical expenses taken care of. He said that healthcare plans are often more expensive and not as comprehensive after retiring.

He also explained that if you are going to have Medicare, dental and vision are not covered unless you have an additional policy. 

Buy a Home

Buying a home before retiring was another thing that Lum’s clients noted they were glad they did. He said that while working, you have much more buying power and it’s much easier to qualify for a mortgage if you still have W-2 income. 

Lum stated that with the current higher interest rates, he might lean towards paying cash for a home but acknowledged that it’s not an option for many people. He then emphasized his point that if you are considering moving or downsizing, do it before you quit your W-2 job. 

Do Home Repairs

If major home repairs are needed, like replacing your HVAC system, Lum recommended doing them while you are still earning money. He also said to consider upgrading windows and insulation before retirement because the added home efficiency you’ll gain may help you save because you likely will be spending a lot more time in your home. 

He also said that from a psychological perspective, it is sometimes easier to spend the money from your savings while you are still working and have income coming in.

Buy a Reliable, Low Maintenance Car

Lum advised buying a reliable, low-maintenance car and paying it off before retiring. He reported that many people have stated that having dependable transportation significantly reduces stress later on in retirement.

Prepay Some Bucket List Experiences

Lum reemphasized that spending in retirement can be difficult due to the psychology of money. So he recommended that if you have a dream trip you’ve been putting off because of the expense, you should plan and pay for it before you retire because it can save you money and helps put the trip on the calendar for the future.

He also explained the danger of putting off an experience or trip now because you think you can’t afford it and then finding out later that you do have the money, but the mobility or desire you previously had are gone. 

Overall, Lum said, retirement is about more than just saving money, it is about preparing to enjoy the next stage in your life.

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