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As summer fades into fall, it's the perfect time for those approaching retirement to reassess their financial strategies. Whether you’re just a few years away from retirement or a decade off, scheduling a review with your financial advisor now can help you implement tax-saving strategies, adjust retirement contributions, and make key adjustments before the year ends. Here’s what you should focus on:

Preparing for Year-End Financial Deadlines - Many financial deadlines, such as those related to tax strategies and required minimum distributions (RMDs) for certain retirees, arrive before the year closes. Waiting until the last minute could cause you to miss opportunities to maximize savings or reduce your tax burden. Taking the time now to assess your plan will ensure you have plenty of room to make informed adjustments.
Assessing Market Performance - This summer, expectations of interest rate cuts drove stocks and bonds higher, though volatility remained. Bonds regained their role as portfolio stabilizers when stock fluctuations picked up, and alternative investments continued delivering competitive returns. As we move toward a potential Fed easing cycle and assess slower economic growth, it’s important to review your portfolio and ensure your allocations are well-positioned for the rest of the year. With U.S. elections on the horizon, further market volatility is likely, so now is the time to confirm that your investments align with your goals and risk tolerance.
Reevaluating Any Lifestyle Changes - The summer months are often marked by family gatherings, vacations, and significant life events, such as moving to a new home or changes in employment. These events can have a considerable impact on your financial situation. For instance, relocating to a different state may affect your tax obligations, while changes in health could prompt you to reconsider your insurance coverage. Integrating these lifestyle changes into your financial plan now ensures you stay on track for retirement.
Retirement Income Strategy: Are you on track?
As you near retirement, having a clear plan for turning your savings into a steady income stream is essential. Review your withdrawal strategy to ensure it's sustainable, considering inflation, healthcare costs, and longevity. Also, ensure your income sources—such as Social Security, pensions, real estate, and investments—are well-diversified.
Tax Planning - Tax planning should be a central component of your financial strategy, especially as you near retirement. Late summer is a great time to assess tax-efficient withdrawal options. Consider whether converting some of your traditional IRA or 401(k) funds into a Roth IRA is a good idea before any potential tax rate changes. If you're already retired, ensure you're meeting RMD requirements and exploring other ways to reduce taxable income.
Healthcare and Long-Term Care Considerations - Rising healthcare costs present one of the greatest risks to your retirement savings. Make sure your health insurance coverage is adequate and evaluate whether long-term care insurance should be part of your plan. Even if you don’t need long-term care insurance right now, understanding potential future costs will help you make more informed decisions about your retirement.
Do You Need to Update Your Estate Plan? Estate planning is a critical part of retirement preparation. Review your will, power of attorney, and healthcare proxy to ensure they reflect your wishes. Verify that beneficiary designations are up to date on all accounts, including retirement savings and life insurance. If you’re planning to leave a charitable legacy, consult with our advisors about tax-efficient strategies.

The Seeds You Plant Today Determine the Harvest You Reap Tomorrow

Now is the perfect time to meet with our team, ask the right questions, and make necessary adjustments to your financial plan. Taking these steps will help strengthen your financial position and provide greater peace of mind, whether you’re nearing retirement, or enjoying your retirement years now. Contact Aspire Planning Associates at (925) 938-2023 to schedule your consultation today!