By Tony Collins, CFP®, AIF®, Wealth Advisor
Planning for retirement can feel overwhelming, but it’s important to remember that you are not alone. When it comes to retirement, there are numerous moving pieces that can make planning complicated. These include saving goals, Social Security, healthcare, and lifestyle expenses. One way to stay organized is to create a retirement checklist. A well-structured checklist simplifies the process and helps you stay organized.
A retirement checklist can make retirement planning more manageable by breaking the process into manageable steps, rather than thinking of it as one big, complicated task. It provides you not only with a roadmap but also helps keep you accountable and builds confidence that you are covering your bases. This article will dive deeper into three reasons why a retirement checklist can help set you up for success. You’ll also find a comprehensive checklist available for download.
Reason #1: Retirement isn’t “Set it and forget it”
As much as we would like it to be, retirement planning is not a set-it-and-forget-it task, like paying your credit card bill. Retirement planning is a journey that evolves over time. As your needs, wants, and goals change, it’s essential that your retirement plan adapts to them.
Any lifestyle changes, such as moving into a larger home, taking on new hobbies, or supporting family members, can alter your retirement plans. It’s also important to note that there will always be periods of market downturn. It’s critical to collaborate with your financial advisor and adjust withdrawals or rebalance your investments. Social Security rules evolve, and new acts get passed (like SECURE 2.0), and can impact how much you’ll need for retirement.
Regularly reviewing your retirement plan helps keep it up to date, regardless of any changes that may occur. A retirement checklist can help you periodically revisit key areas, such as whether your insurance has changed or if your estate planning documents accurately reflect your current wishes. By adding this checklist to your routine, you’ll be on top of planning for your golden years.
Reason #2: A checklist helps you “stress test” your retirement plan
Retirement projections rely on assumptions such as projected returns and increasing healthcare costs. While these assumptions provide a starting point, they do not always play out as predicted. One thing we like to do is “stress test” a retirement plan against different destinations.
A stress test is performed by walking a retirement plan through potential risks such as market downturns, spikes in healthcare costs, or reduced Social Security benefits. By considering these risks, you can assess the strength of your plan and identify weaknesses that may need to be addressed. For instance, if a market downturn significantly reduces your income, you may want to consider delaying retirement for a year, increasing your savings, or adjusting your investment strategy. But regardless of what happens with the market, the stress test will help you note appropriate steps to plan for retirement accordingly.
Reason #3: Get clarity on spending, taxes, and lifestyle goals
It’s essential to remember that retirement isn’t just about the accumulation of savings; it’s also about how you’ll utilize those resources to support the life you want.
A retirement checklist helps you define those lifestyle goals, such as whether you want to travel regularly, support charitable causes, or downsize your home. These decisions help direct how much you’ll need to draw from your accounts, help you evaluate your spending habits, and make sure that your expenses and big-ticket goals are balanced realistically.
Taxes are also a significant consideration, as they are one of the largest expenses in retirement. Without proper planning, withdrawing from retirement accounts or retiring with minimum distributions can push you into a higher tax bracket. A checklist helps keep taxes front and center, so you’re not caught off guard.
By reviewing spending, taxes, and lifestyle goals together, you can work to create a complete picture of your financial future. The result is more than just a retirement plan; it is a roadmap to help plan for the life you want to spend.
Download the retirement checklist to get started
Download our comprehensive retirement checklist to help take the first step towards building a confident, well-prepared retirement plan. If you have any questions about your retirement planning, reach out for a free consultation today.
Disclosure:
Halbert Hargrove Global Advisors, LLC (“HH”) is an SEC registered investment adviser with its principal place of business in Long Beach, California. HH may only transact business in those states in which it is registered, notice filed, or qualifies for an exemption or exclusion from registration or notice filing requirements. Registration does not imply a certain level of skill or training. For information pertaining to the registration status of HH, please contact HH or refer to the Investment Adviser Public Disclosure web site (www.adviserinfo.sec.gov). Additional information about HH, including our registration status, fees, and services can be found at www.halberthargrove.com.
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