As summer winds down, it’s a good time to take a step back and review where things stand financially.
For those approaching retirement, that may mean checking whether your portfolio is positioned for the transition ahead. For those already retired, it can be an opportunity to review your income plan, taxes, investments, and healthcare costs.
You don’t need to overhaul your financial plan every few months, but a quick review now can help uncover opportunities and address potential issues before the end of the year gets busy.
Here are five areas worth taking a closer look:
1. Evaluate Your Investment Allocations
It’s easy to focus on your account balance, but how that money is invested matters just as much.
Your allocation should reflect your goals, time horizon, and comfort with risk. Someone with decades until retirement may have more room to emphasize growth. As retirement approaches, the focus often shifts toward generating income while managing market volatility.
Rather than moving everything into conservative investments, make sure your allocation continues to reflect your goals and the role your portfolio will play in retirement.
2. Review Your Retirement Income Needs
Start with your expected expenses and available income sources, then estimate how much you may need to withdraw from your retirement accounts each year.
Your spending can change significantly in retirement. Travel, hobbies, housing, and healthcare may look different than they did during your working years. If your plans have changed, such as a move, a different retirement date, or a larger travel budget, your income plan may need to change with them.
Reviewing your income needs alongside your portfolio can give you a clearer picture of your retirement readiness.
3. Look at Annual Tax Strategies
Late summer may feel early for tax planning, but many strategies need to be considered well before December.
For retirees and those approaching retirement, this could include evaluating a Roth conversion or charitable giving opportunities. If you expect to be in a higher tax bracket, paying taxes on a Roth conversion today could potentially reduce future taxable income.
The right strategy depends on your current tax bracket, expected future income, account balances, and overall retirement plan. Giving yourself time to evaluate those options can help avoid rushed decisions at year-end.
4. Update Beneficiaries and Estate Documents
Your financial circumstances can change over time, and your estate plan should keep pace.
Review beneficiary designations on retirement accounts, insurance policies, and other financial accounts. Then, take a look at your wills, trusts, powers of attorney, and other estate documents to make sure they still reflect your wishes.
Marriage, divorce, the loss of a loved one, or other significant financial changes may all warrant an update.
5. Put Healthcare Costs Back on the Radar
Healthcare costs can add up quickly in retirement. Medical expenses can reach nearly $200,000 per person, excluding long-term care.
Medicare can help cover many expenses, but premiums, deductibles, out-of-pocket costs, and other healthcare needs still need to be part of your plan.
If you’re approaching Medicare eligibility, review your coverage options. If you’re already enrolled, revisit your current costs and coverage as part of your broader retirement plan.
A Little Planning Now Can Create More Options Later
Late summer can serve as a useful checkpoint before the final months of the year get busy.
Review your investment allocation, retirement income needs, tax strategies, estate documents, and healthcare costs. You may find that everything is on track, or you may uncover an opportunity to make a small adjustment that could have a meaningful impact over time.
Either way, taking a closer look now can help you head into the final months of the year with a clearer picture of where you stand and more confidence in the decisions ahead.
Moore Invested Disclosure
Advisory Services offered by Arkadios Wealth. Moore Invested and Arkadios are not affiliated through any ownership.
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