One of your most valuable resources as retirement gets closer isn’t just money. It’s time.
If you’re five years away from retirement, five years probably sounds like a long time.
“I’ve still got plenty of time to figure this out.”
Perhaps.
But one thing I’ve learned over the years—whether I’m working with families in Milwaukee, Brookfield, Oconomowoc, or throughout Southeast Wisconsin—is that those last few years before retirement can go by awfully fast.
And one of the biggest mistakes I see isn’t necessarily making a bad financial decision.
It’s waiting too long to start making the decisions.
The earlier you start planning, the more options you may have.
Suppose you’re five years from retirement and discover that nearly all of your retirement savings are in tax-deferred accounts like a traditional IRA or 401(k).
Could redirecting your ongoing contributions to your workplace retirement plan from pre-tax to Roth make sense instead? How about a Roth Conversion, would that make sense in your situation?
Maybe.
But having several years to evaluate and potentially make those decisions may give you more flexibility than discovering the issue six months before retirement.
The same can be true with paying down debt, adjusting investment risk, planning for retirement healthcare costs or even further down the line, future long-term care costs.
Retirement has a funny way of sneaking up on you and some decisions simply work better when you give yourself more time to make them.
I believe there’s tremendous value in starting the conversation while you still have time to make adjustments.
Maybe Here’s the Real Advantage of Starting Earlier
The closer you get to retirement, the more certain decisions begin to matter. And some decisions become harder to undo when you have less time to change course.
So, you’re not trying to predict exactly what retirement will look like five years from now. You’re simply giving yourself time to evaluate, adjust, and even change course if something doesn’t go as planned.
So, instead of asking: “How many more years until I retire?”
Maybe the better question should be: “What things can I do to enhance what I’m already doing?”
One measures the time until retirement. The other recognizes the opportunity you still have before you get there.
That’s why I don’t look at five years before retirement and think:
“You have plenty of time.”
Not even close.
I look at it and think:
“This is your opportunity to position yourself as best as possible.”
Whether you believe you’ve planned well on your own—or even if you’re playing catch-up—having more time gives you more opportunity to make thoughtful decisions about the money you’ve already worked so hard to build.
Watch our Complimentary Presentation, “The Retirement Confidence Roadmap”
Discover how retirement income, investments, taxes, healthcare planning, and other important financial decisions work together to help create greater retirement confidence
OR
Schedule Your Complimentary Assessment
If you’d rather begin with a conversation, we’d be happy to answer your questions during a complimentary Introductory Conversation.
