Below are some of the most frequently asked questions from individuals preparing to retire, along with practical tips to help you make informed decisions:
1. How Do I Make Sure My Money Lasts?
This is one of the most common concerns—and for good reason. Retirement could last 20 to 30+ years, and ensuring your savings can support your lifestyle takes strategy.
Coordinating withdrawals with income sources like Social Security, pensions, and investment accounts can help extend the life of your portfolio. Some people also explore turning a portion of their savings into guaranteed income streams for peace of mind.
Tip: A personalized withdrawal plan can reduce stress, improve tax efficiency, and help you avoid overspending too early.
2. Should I Change My Investment Strategy as I Approach Retirement?
Most likely, yes. As retirement nears, your risk tolerance often shifts. You have less time to recover from market downturns, which means protecting your portfolio becomes just as important as growing it.
That doesn’t mean abandoning growth—it’s about adjusting your allocation and possibly exploring strategies that smooth out volatility while still keeping pace with inflation and taxes.
Tip: Now is a good time to reassess your risk exposure and ensure it still fits your goals.
3. What Should I Do With My 401(k) When I Retire?
You typically have a few options:
- Leave it in your former employer’s plan (if allowed)
- Roll it into an IRA for more investment choices and control
- Move it into your new employer’s plan (if applicable)
- Take a cash distribution (beware of taxes and penalties)
A rollover to an IRA is a popular option for its flexibility, but it's important to consider fees, tax implications, and how the move fits into your larger plan.
Tip: Talk to a financial advisor before initiating a rollover to make sure it’s the best move for your situation.
4. Can I Still Contribute to Retirement Accounts After 50?
Yes—and you should, if you can. The IRS allows catch-up contributions starting at age 50, giving you an opportunity to save more in your final working years.
In 2025, you can contribute an extra $7,500 to your 401(k) and an additional $1,000 to your IRA beyond standard limits.
Tip: Maxing out contributions in your 50s can help close any gaps and strengthen your retirement cushion.
5. How Do I Minimize Taxes in Retirement?
Federal taxes still apply to IRA withdrawals, Social Security (in some cases), and investment income—even if you live in a state with no income tax.
Strategic tax planning can make a significant difference. This might include:
- Roth conversions during lower-income years
- Managing RMDs efficiently
- Timing withdrawals to stay in a lower tax bracket
- Using Qualified Charitable Distributions (QCDs) for charitable giving
Tip: A tax-efficient retirement income strategy can help your money go further—especially in your 70s and beyond.
6. What About Healthcare and Long-Term Care?
Healthcare is one of the most unpredictable retirement expenses. While Medicare helps, it doesn’t cover everything, especially long-term care services.
Consider:
- A Medicare Advantage or Medigap plan to cover gaps
- Long-term care insurance or hybrid life policies
- A financial plan that accounts for in-home or facility-based care if needed
Tip: Planning now can give you more control and help protect your assets later.
7. When Should I Claim Social Security?
This is one of the biggest levers you can pull in retirement. Claiming early means lower monthly checks for life, while waiting (up to age 70) can significantly boost your benefit.
Factors to consider:
- Your income needs
- Life expectancy and health
- Spousal or survivor benefits
- Other sources of income
Tip: A personalized Social Security analysis can help you make the most of your benefits.
8. Should I Pay Off My Mortgage Before I Retire?
This is a big one, especially for those entering retirement with low interest rates but a sizable balance. It depends on cash flow, emotional comfort, and opportunity cost.
Tip: Consider whether paying off your mortgage gives you peace of mind or limits flexibility in retirement.
9. Do I Need an Estate Plan if I’m Not “Wealthy”?
Yes. A basic estate plan isn’t about being rich—it’s about clarity, control, and reducing burdens for loved ones.
Tip: At minimum, consider a will, healthcare directive, power of attorney, and beneficiary review.
Bringing It All Together
There’s no one-size-fits-all answer when it comes to retirement. The right approach depends on your personal goals, savings, family situation, and lifestyle vision. That’s why working with a financial advisor can be such a valuable step.
An experienced, independent advisor can help you:
- Organize and prioritize your retirement decisions
- Coordinate Social Security, taxes, and income planning
- Avoid common mistakes rookie retirees often make
- Become more confident so you can focus on enjoying retirement—not stressing over it
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Need a Second Opinion? Let’s Talk.If you’re within 5–10 years of retirement and looking for clear answers, we’re here to help. As fiduciary financial advisors, we provide guidance based on what’s best for you—no product sales, no hidden agenda, just experienced support to help you move forward with confidence.
Ready to ask your own retirement questions?Let’s schedule a no-pressure call to talk through your priorities and next steps.
Disclosure: Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. Asset allocation does not ensure a profit or protect against loss.
