Retirement is a big deal. It’s a transition that a lot of people don’t think about beyond just making sure they have enough money in the bank.
But as someone who talks to retirees and soon-to-be retirees every day, I can tell you — there’s so much more to it than just having a financial plan. It’s about being intentional with what this next phase of your life looks like. So here are nine retirement planning tips to think about before you take that leap.
Some of you have been working for 40, maybe even 50 years. We have seen clients who started working at 14. Now, suddenly, every day is a Saturday. What are you going to do with yourself?
I have a client who could retire today, no problem, but he isn’t stepping into retirement because he’s convinced he’ll just end up at the casino or the bar if he doesn’t have structure in his life.
So take a second and close your eyes. What do you actually see yourself doing every day? Will you travel? Where to? What are your hobbies today? Will you volunteer? Or will you watch TV all day? Figure this out now because having all the time in the world with no plan on what to do with it isn’t as great as it sounds.
I know, I know — nobody loves thinking about this, but if you don’t, your family is going to have to deal with it later. Your estate plan should be updated every five to seven years anyway, but now’s the time to make sure you have solid trustees in place and that there’s a backup plan if something happens. Don’t just check the box on this one — sit down with an experienced attorney and make sure everything is set up the way you want it.
Is a vacation one of your goals for retirement? A lot of people wait two or three years before taking their first real trip after retirement. Why? Because once they stop getting a paycheck, they start stressing about money, even if they have plenty of it.
My advice? Plan that trip before you retire. Budget for it, get excited about it, and just go. And don’t stop at one — map out your next three or four trips. You worked hard for this. Enjoy it.
This is a big one.
For decades, you’ve had money hitting your bank account like clockwork. Now, you have to create that income yourself. How do you want to do it? Monthly? Quarterly? Every two weeks, like a typical paycheck?
You need a plan for where the money is coming from — Social Security, pensions, investments — and how much you can comfortably withdraw each year without running out. Getting comfortable with this now makes a huge difference. Imagine you are your employer. Give yourself an annual salary, and figure out how you will disburse the funds.
Debt isn’t always bad, but going into retirement with a bunch of it? That’s stress you don’t need.
Focus on paying off high-interest debt first — like credit cards — and try to get rid of any big loans if you can so you don’t have to use up precious savings for those kinds of things. The less pressure on your investments, the better.
Life happens. Markets crash, unexpected expenses come up, and health issues arise. The last thing you want is to be forced to sell investments when the market is down just to cover your bills. We always tell our clients to have 12 to 18 months of cash set aside. It’s a safety net, so you don’t have to worry when the unexpected hits.
Nobody wants to think about getting old and needing care, but guess what? It happens. Home health aides, assisted living, nursing homes — these things are expensive. If you haven’t already, research long-term care insurance while you’re younger and healthier. It’s cheaper than waiting until you actually need it, plus once you need it, it’s too late to get it.
Financial planning for retirement should start early, so you should already be doing this. If you’re not, now’s the time to find someone you can trust with your financial plan.
Retirement isn’t just about having savings — it’s about having a plan for how you’re going to make that money last. When should you start taking Social Security? How do you minimize taxes on your withdrawals? How do you keep your portfolio balanced so you don’t run out of money?
Having a pro in your corner makes a huge difference.
For a lot of people, work has been their primary identity. They don’t just do a job; it’s who they are. So when they retire, they feel a little lost.
When you’re setting your retirement goals, think about what’s going to give your life meaning outside of work. Maybe it’s volunteering, mentoring, or getting involved in something that matters to you.
Before our daughter was diagnosed with Type 1 Diabetes (T1D), I was involved with the Salvation Army, working with youth programs. Now, I’m involved with Breakthrough T1D, which is dedicated to funding research to cure T1D. Whatever it is for you, find something (outside of your immediate family) that brings you joy and gives you a reason to get up in the morning.
When people ask how to prepare for retirement, I always say it isn’t just about quitting your job and hoping for the best. It’s about being intentional — about your money, your time, and your purpose.
And intentionality really is the secret ingredient. So start planning now because the better you prepare, the more you’ll enjoy this next chapter of your life. Happy Retirement!
James Bode is Managing Partner at Beck Bode, a deliberately different wealth management firm with a unique view on investing, business and life.