Reaching your 60s brings a major financial shift: moving from building wealth to turning it into income. For many, this is the biggest behavioral challenge of retirement, after years of saving, it can feel strange to finally start withdrawing.
Here are some key areas to focus on as you approach retirement:
- Protect your retirement date. While in the “retirement red zone,” a market drop can derail your plans. Keeping 5 years of income in short-term fixed income helps create stability.
- Set a withdrawal plan. A common starting point is 4% of your portfolio annually, with adjustments for inflation.
- Confirm your Social Security strategy. The timing of when you claim can significantly impact lifetime benefits.
- Be smart with taxes. Withdrawing from a mix of accounts: IRA, taxable, and Roth, all three can leave you with very different after-tax income. Flexibility is key.
- Plan for healthcare. If you retire before Medicare at 65, explore your options. Many are surprised to learn retirement healthcare costs are often lower than expected.
- Think about housing. Do you want to stay put, move closer to family, or right-size your home? Making these decisions proactively at 64 is much easier than at 82.
Retirement isn’t just about slowing down, it’s about redirecting your time and resources toward what matters most. The best way to prepare? Run a “retirement income preview” to simulate how you’ll be paid when the paycheck stops.
If we’re not currently working together and you don’t have a plan in place, now is the time, please reach out.
We’re here when you’re ready,
—Nic
A quick note:
*If you have friends or family that might find this helpful, please forward this their way.
**If we’re not yet working together and you’re already working with an advisor but have considered making a change, please know that we help people do this all the time. It’s a simple transfer process that can be done without you having to be involved at all (if you like).
