When it comes to planning for retirement, it’s easy to get overwhelmed. Putting together a financial strategy can be complicated at any time of life, what with changing regulations, ups and downs in the market, and disagreements — even among the better-known investment advisers — about the best ways to save and spend money. But the closer you get to actually stopping that regular paycheck, the scarier things can get.
More than half of pre-retirees report feeling anxious about their impending retirement and worry they will run out of money.
What did they say made them feel more confident? Having a plan in place.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
If you’re ready to take control, talk to a financial adviser about these four financial planning essentials:
1. Put a tangible and comprehensive retirement plan in place.
Find a financial adviser who specializes in advance planning — not just investment planning, but also income planning (making sure you’re paying yourself the right way in retirement), tax planning strategies (minimizing your exposure so you’re not paying more than you have to), health care planning (finding the right Medicare plan for you and considering your long-term care needs) and legacy planning strategies (assuring your assets will pass efficiently to the people and/or charities of your choice). Then gather up your paperwork and get ready to get comprehensive.
2. Make sure your plan includes transitioning from growth to income investing.
People tend to get stuck in one investing strategy. They spend so many years trying to accumulate money, they forget to make the shift from the growth phase to the income phase when they retire.
One common mistake is to start taking systematic withdrawals — a set dollar amount — without changing to an income-type portfolio. That’s fine if the market is up: You make money, you take money — no harm, no foul. But if you’re pulling out money in a down market, you’re increasing the odds of running low on — or out of — funds.
Rework your plan to preserve your money as the years pass.
3. Be aware of fees and overpaying to own your investments.
Imagine you’re on a cruise and there are icebergs in the water. You know what’s above the water because you can see it, but you have no idea what’s below the surface. It’s the same thing in the financial planning industry: Advisers’ fees or the stated expense ratios on mutual funds are above the water and pretty easy to spot. But you really don’t know what’s below the surface unless you have a thorough evaluation of your portfolio.
People will come into our office for a consultation and tell us that they're paying just 1% to their advisers. But what they don't realize is that their portfolio is getting hit with another 4% or 5% in additional mutual fund costs or other expenses. Making sure your underlying investments are as cost efficient as possible is going to put more money in your pocket.
4. Consider a retirement income annuity to create a pension-like income in retirement.
A lot of people are retiring without a pension today. But they do have 401(k), 403(b) or 457 plans, and when they retire, they can use that money to create their own pension. Properly structured annuities with income benefits are the only investment that can make it unlikely that you will run out of money for as long as you live. Look for one that has an inflation hedge, so you don’t buy into a set figure today that won’t be enough if you live 20 or 30 years in retirement.
After all, a long retirement should be your goal — not your worst nightmare.
Kim Franke-Folstad contributed to this article.
Securities are offered through GF Investment Services, LLC, Member FINRA/SIPC. Investment advisory services offered through Global Financial Private Capital, LLC, an SEC registered investment advisor.
Any comments regarding safe and secure investments, and guaranteed income streams refer only to fixed insurance products. They do not refer, in any way to securities or investment advisory products. Fixed Insurance and Annuity product guarantees are subject to the claims‐paying ability of the issuing company and are not offered by Global Financial Private Capital or GF Investment Services.
This is provided for informational purposes only and is not intended to provide specific tax or legal advice or serve as the basis for any financial decisions. Be sure to speak with qualified professionals before making any decisions about your personal situation.
The appearances in Kiplinger were obtained through a PR program. The columnist received assistance from a public relations firm in preparing this piece for submission to Kiplinger.com. Kiplinger was not compensated in any way.
-
The Most Popular Apps for Retirement Planning in 2025A J.D. Power survey ranks retirement planning apps based on customer service and satisfaction. Does your financial app make the cut?
-
Don't Disinherit Your Grandchildren: The Hidden Risks of Retirement Account Beneficiary FormsStandard retirement account beneficiary forms may not be flexible enough to ensure your money passes to family members according to your wishes. Naming a trust as the contingent beneficiary can help avoid these issues. Here's how.
-
Don't Disinherit Your Grandchildren: The Hidden Risks of Retirement Account Beneficiary Forms
Standard retirement account beneficiary forms may not be flexible enough to ensure your money passes to family members according to your wishes. Naming a trust as the contingent beneficiary can help avoid these issues. Here's how.
-
This Is How Life Insurance Can Fund Your Dreams NowBeyond a death benefit, life insurance can provide significant financial value and flexibility through 'living benefits' while you are still alive, helping with expenses like education, business ventures or retirement.
-
Potential Trouble for Retirees: A Wealth Adviser's Guide to the OBBB's Impact on RetirementWhile some provisions might help, others could push you into a higher tax bracket and raise your costs. Be strategic about Roth conversions, charitable donations, estate tax plans and health care expenditures.
-
One Small Step for Your Money, One Giant Leap for RetirementSaving enough for retirement can sound as daunting as walking on the moon. But what would your future look like if you took one small step toward it this year?
-
This Is What You Really Need to Know About Medicare, From a Financial ExpertHealth care costs are a significant retirement expense, and Medicare offers essential but complex coverage that requires careful planning. Here's how to navigate Medicare's various parts, enrollment periods and income-based costs.
-
I'm a Financial Planner: Could Partial Retirement Be the Right Move for You?Many Americans close to retirement are questioning whether they should take the full leap into retirement or continue to work part-time.
-
From Mortgages to Taxes to Estates: How to Prepare for Falling Interest RatesAs speculation grows that the Federal Reserve will soon start lowering interest rates, now is a good time to review your financial plans for housing, estate, taxes, investing and retirement to make the most of potential changes.
-
This Is How Lottery Winners Build Lasting Legacies, From a Financial ProfessionalWinning a massive lottery jackpot, like the recent $1.4 billion Powerball, requires seeking immediate legal and financial counsel, protecting your identity and winnings and planning your legacy.
