Time Waits For No One

“Bren” Sheriff, Certified Senior Advisor (CSA)
“Bren” Sheriff, Certified Senior Advisor (CSA)

Time Waits For No One

As you approach retirement—within a 10-year window—it becomes critical to shift from general savings to strategic, goal-oriented planning. This period offers a final opportunity to fine-tune your finances and secure the lifestyle you envision in retirement.

Start by clarifying your retirement goals. Consider when you want to retire, what kind of lifestyle you expect, and what your anticipated expenses might be. This clarity allows you to identify potential gaps between your current savings and your future needs, giving you time to correct your course, if necessary. A detailed projection—whether through a retirement calculator or a Certified Senior Advisor (CSA) can help you determine how much more you need to save.

Boosting your savings becomes especially important. Take full advantage of catch-up contributions in retirement accounts. If you're 50 or older, you're allowed to contribute more annually to 401(k)s and IRAs than when you were younger. These increased limits can help close any savings gap and maximize your tax-advantaged growth during these critical years.

As retirement nears, it's wise to shift your investment strategy to focus more on preserving capital and generating income. This doesn't mean abandoning your lucrative investments, but it does mean avoiding risky investments.  Yes, now is not the time to go after those long shots.  Stay the course with a diversified mix of bonds, dividend-producing stocks, and conservative investments can help protect your portfolio from market volatility while still delivering modest returns.

Reducing or eliminating high-interest debt is another smart move. Going into retirement with fewer financial obligations means more flexibility and less stress. Pay down credit cards and personal loans aggressively. If you have a mortgage, weigh the pros and cons of paying it off before you stop working.

Healthcare planning should also move front and center. Medical costs are likely to rise as you age, and Medicare doesn’t cover everything now and who knows what it will cover when you retire.  Now is the time to evaluate your health insurance options and consider purchasing long-term care coverage while premiums are still manageable.

A well-planned withdrawal strategy ensures your money lasts throughout retirement. Understand when and how to draw from Social Security and retirement accounts, keeping tax implications and required minimum distributions in mind. Whether you follow a fixed-percentage rule or a more flexible strategy, having a plan is essential and seeking professional help may be key to a successful retirement plan.

Finally, review your estate documents. Make sure your will, power of attorney, and beneficiary designations are up to date. Consider whether trusts or other legacy planning tools can help meet your personal retirement goals.

With thoughtful planning, the decade before retirement can be your most financially empowering.  Start today, time waits for no one.

 

THIS WEEK’S QUIZ: At what age can you increase your annual maximum contributions to your IRA(s)?

 

Answer to last week’s quiz: Well, there has been some pushback on the “Big Beautiful Bill”, but as today, June 26, 2025, the Senate has not voted on this bill.

To get a more detailed answer to last week’s QUIZ question or for any financial questions that you may have, please contact me: 773-817-0601 or basheriff1@gmail.com

Disclaimer: The illustrations presented in this column are not, nor are they intended to be, legal, financial, or any other licensed professional advice, you should contact the licensed professional of your choice for advice on your individual situation.

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