If you’re within 5–10 years of retirement, this is your window to make the smartest financial decisions you’ve ever made. Here’s what I walk through with my own clients as they approach retirement:
1. Know Your Retirement Number
- Figure out how much income you'll need monthly. Add in things like travel, helping grandkids, or moving to a different island.
- Don’t forget inflation. What costs $5,000/month now might be $6,000 in just a few years.
2. Evaluate Your Investment Risk
- This is the time to reduce the rollercoaster in your portfolio. But don’t go too conservative—you may need to fund 30+ years of retirement.
- I often recommend a bucket strategy and mixing in different investment tools and strategies that go beyond what you’ll typically see online
3. Consider Roth Conversions
- If you’re in a lower tax bracket after retiring, you may have a golden opportunity to convert IRA money to a Roth at a bargain tax rate before you start social security or RMDs kick in at 73
- It also gives you flexibility in retirement and can help lower Medicare premiums.
4. Create a Healthcare Strategy
- Understand Medicare, and whether your employer offers retiree coverage.
- Budget for premiums, copays, dental, vision—and don’t forget potential long-term care costs.
5. Develop a Social Security Plan
- When to claim can make a big difference. If you're married, think about spousal and survivor benefits, too.
6. Reassess Life Insurance and Estate Plans
- You may no longer need the same insurance—or you might need more to protect your spouse or leave a legacy.
- Make sure all your estate planning documents are current, and that your plan reflects your values.
Final Thought: I always say—retirement isn’t just about the numbers, it’s about peace of mind. Having a plan helps you retire with confidence, knowing you’ve covered all your bases.
If you’re not sure where to start, let’s talk. I’m happy to walk through your situation and help you map out your next steps.