One of the trickiest adjustments you’ll ever have to make is to transition yourself from the work world to retirement. Building that retirement nest-egg was only half of the battle. Now you have to make your money last for the rest of your life.

Sounds like a tall order? Yes, but not an impossible one.

Once you’re retired, your role changes from paycheck collector to portfolio manager. It’s up to you to determine how to divvy up your nest egg so that you can begin collecting income, continue to make money and manage the tax impact, while staying ahead of inflation.

Here are some things to think about as retirement looms on the horizon.

As you near retirement, it’s a good idea to begin mapping out your game plan before you say, “Sayonara!” to the work week. Here are some considerations you might explore to get prepared. The better you plan 5-10 years before you have to, the easier it will be to make that jump from work to retirement.

Where Will You Live? Since where you choose to live has a major impact on your expenses, weigh your options carefully.

Many retirees choose to stay put and others decide to travel. Still others relocate to retirement communities in warmer climates. Which choice will you make?

Good health aside, your choice will depend on how much money you’ve saved thus far and how much you’ll be able to sock away in the next few years. The Internet is the best place to research your options, particularly if you’re considering a major relocation.

Your retirement assets may last longer if you downsize your home or move to a less expensive community. If you decide to sell your house, you can use the excess equity the house has earned to feather your new nest, to the degree your old house is paid off.

If you plan to stay put and still want to enhance your retirement, you can begin to pay down your debts now so that more of your retirement pool can go directly to living expenses rather than debt. Calculate how much you will need to retire whether you stay home, travel or relocate. Then look at your nest egg’s earning power, lasting power and ability to provide adequate income to meet your goals.

One of the biggest ongoing expenses in your life is your mortgage. While paying your mortgage while you’re working may not be that difficult, your mortgage can become a heavy burden when you retire. One of the smartest things you can do is to try to pay down some of the principal on your mortgage in the years BEFORE you retire.

Plus if you pay off your mortgage before you retire, you may not have to draw as much from your retirement account(s). This means you have more money in the kitty that continues to grow tax-deferred. Plus, the peace of mind of knowing your house is your own is a benefit in itself.

Now, maybe you’re like the rest of us who thinks that’s a great idea, but doubling up on your mortgage just isn’t in the picture. Check with your lender to make sure you can prepay without penalty and you can apply whatever you can afford each month directly to principal. The more you prepay, the sooner your mortgage will diminish. You will be surprised how quickly your mortgage can shrink when you start applying payments directly to principal. Make sure you check with your lender and consider consulting your financial professional before you.

Streamline your finances. Decide what you can live without. Pay off those bills that threaten to weigh on you in the future.

Think before you make any major purchases. Taking a trip, or buying a car or a summer home at this juncture in your life, must be balanced with your retirement goals. Even if you can swing the car payments for that snazzy convertible, weigh the financial impact before making any sudden moves.

Think about how you will spend your time when you retire. Factor in the cost for the activities you choose. Travelling will cost you more than staying home or visiting relatives. If you decide to travel, now is the time to budget for your trips.

If you haven’t contributed to your retirement savings plans to the full extent possible, now is the time to do so. Take full advantage of the maximum contribution and catch-up features that your retirement savings plans may offer. It’s also a good idea to see if you can set aside additional money in something that is tax-deferred to add to those retirement plans.

Nowadays, many financial planners assume a life expectancy of up to 90! We find ourselves in the position of having to pay for a retirement that may be as long as all of our working years. That’s a long retirement to plan for. Now is the time to focus on bridging the gap between what you have saved and what you’ll need.

Depending on your tolerance for risk and your investment objectives, you may want to cut back your exposure to some of your higher risk investments. One plan is to gear part of your portfolio toward more conservative investments to provide long-term growth for stability and income. This will help to balance off the volatility of more aggressive investments.

Always talk to a financial professional before you consider making any changes to your current portfolio. Only he or she can assess your situation and make suggestions that are right for you.

Okay, now that we’re nearing the home stretch, it’s time to get serious.

Many retirees can expect to draw their retirement income from three sources: Social Security, employer sponsored retirement plans, and their own savings.

It’s to your benefit to calculate your projected future retirement income as best you can, so that you can develop strategies to close income-expense gaps you see down the road.

You may have pension plans with long-lost former employers. It may be a good idea to contact those former employers to find out if you have any residual retirement savings with them. If you do, find out how much and how and when you can access the money.

Now it’s time to look at your investments. Work with a financial professional who can help you organize them so that you can receive income, while continuing to generating growth. You may not be able to withdraw as much as you expected. You might not be able to draw more than 3% to 4% in your first year without increasing the risk that you'll run out of money.

Once you decide to live off your investments, your first priority is keeping that money safe. You have to weigh the benefits of generating high annual returns against the possibility of losing principal.

This is the time in your life when you may require the most comprehensive health coverage, yet ironically, you may be able to afford it the least: particularly if you don’t plan well. Many employers don’t provide health care coverage to retirees. Since medical costs are increasing exponentially, your health care coverage has to be designed to meet your coverage needs.

What kind of healthcare options should you be considering?

Many insurance companies offer a variety of health insurance options, but you need to do your homework to find the right coverage at the right price.

Once you turn 65, Medicare will cover most, but not all, health care costs. Medicare doesn't cover most nursing-home expenses, which means you may want to consider buying long-term care insurance. Many retirees can also purchase Medigap which is a supplemental insurance. Medicaid is a joint federal and state program that helps with medical costs for some people with low incomes and limited resources.

Many senior coalitions such as American Association of Retired Persons (AARP) offer a variety of insurance options such as:

Once you itemize the details of your expected income and expense ratio, you can begin to draft a budget. Take time to track your expenses. Good budgets take time to develop, often a few months, as you learn to document unexpected expenses or quarterly/semi-annual payments as they pop up, and incorporate them into your budget. The budget will indicate what your expenses are now, relative to your income. Use the budget to forecast your income / expense ratio as you continue to pare down your expenses before retirement.

Now you may well discover that you'll need to work longer than you expected, or you could get some happy news and decide you want to accelerate your retirement plans. Before you do either, though:

Three months is the jumping off point. Since everything takes at least three months to turn around, this is the time to get your ducks in a row.

Streamline your finances and rethink your budget. What are your “must haves” “want to haves” and “nice to haves?” It’s very enlightening to see just how much your budget can be cut once you’re not working. Consider paying off any pesky bills that threaten to weigh on you in the future.

Consider repositioning your portfolio to a more conservative stance, yet make sure a portion is positioned to continue generating earnings to withstand erosion by taxes and inflation.

Plan your income sources. Decide what part of your nest egg you will withdraw from first with an eye toward mitigating the tax impact as much as possible. Your financial professional can help you through this process.

Notify HR. Let your employer know your planned retirement date. This way, your company has the time it needs to complete paperwork for pension plans.

Get ready to roll.If you are going to roll your employer-sponsored savings plan over to an Individual Retirement Account (IRA), it will take some time for the rollover to occur. If you plan to draw from this account any time in the near future, it’s better to get the ball rolling before your leave.

Call Uncle Sam. Since it also takes time for Social Security payments to kick in, you should apply now. For early retirees, remember, age 62 is the earliest age you can withdraw. So if you’re younger than 62 when you retire, this will be a non-issue for you. If you’re 62 or older, you’ll be collecting social security on a scale, according to your full retirement age, which is based on your birth year. (link to social security full retirement age article)

You should apply for Medicare three months before your 65th birthday. If you’re already receiving Social Security, you are probably automatically enrolled in Medicare.

And last but not least, plan that retirement party!