The Retirement Planning Checklist: 5 Areas to Review
The retirement planning process does not have to feel overwhelming. In fact, some of the most meaningful progress can come from simply slowing down and reviewing your plan on a regular basis. Your yearly check-in with your financial advisor is an opportunity to make sure your long-term goals and your financial reality are aligned. Small adjustments made today can help avoid larger problems down the road.
To help you stay on track, this blog post examines five areas to review with your financial advisor each year.
Revisit Your Retirement Timeline
While your planned retirement age plays a key role in shaping your financial plan, your timeline can change. Whether you are considering retiring earlier than planned, or if you decide to work a few extra years, small shifts in your timeline can have big effects on your overall financial plan. Changes can determine how much you need to save, how long your assets must last, and when you may begin drawing income. Reviewing your timeline with your financial advisor can help make sure your plan still reflects your current and long-term goals.
Review Your Income Sources
A well-structured financial plan is built on a clear understanding of your income sources. This may include a combination of Social Security benefits, employer pensions, retirement accounts like 401(k)s and IRAs, personal investments, or other income sources.
As you review each of these on your own, or with your adviser, consider:
• when each income stream is expected to begin;
• whether your projected income aligns with your anticipated expenses; and
• how these sources work together to support your overall plan.
Having a clear understating of these factors can make a significant impact on how confident you feel about your retirement outlook.
Evaluate Your Withdrawal and Tax Strategy
While your strategy is largely about how much to save, it is also important to consider how you use those savings. Your withdrawal strategy can help determine how long your assets last and, over time, how much you pay in taxes.
While reviewing your tax and withdrawal strategy it is beneficial to determine which accounts to draw from first, how to plan for required minimum distributions, and the tax implications of withdrawals. Your financial advisor is here to guide you through these considerations. A thoughtful approach to these factors can help create more tax-efficient income and support a more sustainable retirement strategy.
Reassess Your Investment Allocation
As you move closer to retirement, the investment strategy you outlined years ago may need to change. This doesn’t always mean making dramatic changes, but it does mean making sure your portfolio still aligns with your time horizon, your income needs, and your comfort with market fluctuations.
Maintaining a healthy balance among growth, income, and preservation objectives is key. Regular reviews with your financial advisor can also help you stay focused on long-term goals rather than reacting to short-term market movements.
Confirm Your Goals Still Align With Your Plan
Retirement is personal, and your vision for it may change over time. It is a good idea to take a step back and ask yourself:
• What does retirement look like for me today?
• Have my priorities shifted?
• Do my expected expenses still reflect the lifestyle I want?
Whether it is time with family, travel aspirations, philanthropy, or simply enjoying a slower pace, your financial plan should support what matters to you most. If your goals change, your plan should change with them. Having open and regular communication with your financial advisor allows us to adjust your portfolio to meet these goals.
Small Reviews, Big Impact
You don’t need to reinvent the wheel during the yearly check-in meeting with your financial advisor, but taking the time to review your plan can make a significant difference. These reviews help ensure that your strategy stays aligned with your life.
If it has been a while since you last reviewed your retirement plan, this checklist is a great place to start. As your financial professionals, we are here to help you achieve your goals and move forward with confidence.
The material has been gathered from sources believed to be reliable, however West Michigan Advisors cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. To determine which investments or planning strategies may be appropriate for you, consult your financial advisor or other industry professional prior to investing or implementing a planning strategy. This article is not intended to provide investment, tax or legal advice, and nothing contained in these materials should be taken as such. Investment Advisory services are offered through West Michigan Advisors. Advisory services are only offered where West Michigan Advisors and its representatives are properly licensed or exempt from licensure. No advice may be rendered unless a client agreement is in place. Securities offered through Registered Representatives of Level Four, a registered broker dealer and Member of FINRA/SIPC