How To Plan When Retirement is 10 Years Away
Retirement may still feel like a distant milestone, but the final decade before it arrives is a pivotal time to make strategic financial moves. A ten-year runway offers time to make impactful financial decisions, but that window closes quickly. This is the point to take a closer look at income sources, portfolio structure, retirement goals, and projected expenses.
Even if you feel behind, there are still proactive steps you can take to achieve a secure and fulfilling retirement. A disciplined approach today supports greater financial security, tax efficiency, and flexibility once you stop earning a paycheck.
Start Planning as Early as Possible
The sooner you begin, the more control you'll have over your retirement outlook. With ten years to go, time is still on your side to adjust your portfolio, ramp up savings, and re-evaluate your goals. Establishing a detailed retirement plan now allows you to identify gaps in savings and address them proactively.
Begin by revisiting your retirement goals: What does retirement look like for you? Will you travel, volunteer, or pursue hobbies? Knowing what you want your retirement to include will shape the financial decisions you make today. Use retirement calculators or consult a professional to estimate how much you’ll need, then compare that figure to your current trajectory. The earlier you identify shortfalls, the more options you’ll have to close the gap, whether that means working a few extra years, increasing contributions, or adjusting your lifestyle expectations.
Partner with a Financial Advisor Who Understands Business Owners
Not all financial advisors offer the same level of service. It’s important to work with someone who understands both your personal and business goals, and who can align your investment strategy with your lifestyle needs.
At Flynn & Company, we have years of experience guiding business owners and professionals through financial transitions. We help integrate personal goals, tax strategy, and investment planning, while also addressing broader considerations such as succession planning, estate strategy, and liquidity needs.
As trusted advisors, we can help you navigate complex decisions like when to claim Social Security, how to manage portfolio risk, and which accounts to draw from first to minimize taxes. We also help coordinate your retirement strategy with your estate planning, insurance, and long-term care needs.
Reduce Debt Strategically Before Retirement
Carrying high-interest debt into retirement can significantly reduce your monthly cash flow. Develop a plan to pay off credit cards, personal loans, or even downsize your mortgage while you are still earning a regular income. A strategic approach to debt reduction now can mean more flexibility and less stress later.
Focus on eliminating bad debt first, like credit cards or high-interest loans. Consider consolidating debt or refinancing for better rates. If you're still paying on your home, evaluate whether it makes sense to pay it off before retirement or maintain a manageable mortgage. Reducing fixed expenses frees up resources for healthcare, travel, or unexpected costs in retirement.
Determine Your Retirement Income Sources
In addition to Social Security, consider how other sources of income, like pensions, IRAs, 401(k)s, investment portfolios, and real estate, will support your retirement lifestyle. Understanding when and how to tap into these sources is key to preserving wealth and minimizing taxes.
A tax-smart withdrawal strategy can make a substantial difference over time. Be sure to review your Social Security benefits and understand your options. Delaying benefits can significantly increase your monthly payout. Similarly, understanding required minimum distributions (RMDs) from retirement accounts can help you avoid penalties and plan withdrawals more effectively. Diversifying your income sources can also provide greater financial stability.
Estimate Your Healthcare and Other Expenses
Healthcare costs often rise as we age and can become one of the largest expenses in retirement. Factor in premiums, out-of-pocket costs, and long-term care. Also consider lifestyle expenses such as travel, hobbies, and home maintenance. A realistic projection can help prevent unpleasant surprises.
Don't forget about Medicare. Know when to enroll and what it does and does not cover. Consider purchasing supplemental insurance or a long-term care policy. On top of healthcare, evaluate your current and anticipated living expenses. Will you stay in your current home, downsize, or relocate? Each choice carries different financial implications.
Account for the Unexpected and Plan for Longevity
Your retirement plan should be resilient enough to handle unexpected life events, including market downturns, health issues, or changes in family dynamics. Planning for a retirement that could last 30 years or more means preparing for inflation, evolving medical needs, and changes in tax policy. Building in flexibility ensures your plan can adapt as needed.
Having an emergency fund, maintaining some level of liquidity, and incorporating guaranteed income streams can all help shield you from financial shocks. And don’t underestimate longevity. Living longer than expected is a positive, but it requires careful planning to avoid outliving your assets.
Get Expert Retirement Planning Help from Flynn & Company
With over 25 years of experience guiding clients through complex financial decisions, Flynn & Company is your trusted partner in retirement readiness. Our team offers comprehensive retirement planning that integrates tax efficiency, income distribution strategies, and long-term financial sustainability.
We specialize in helping business owners and individuals align their retirement plans with their life goals, taking into account the nuances of their personal and professional financial situations. Whether you're catching up or fine-tuning an already solid plan, we’re here to support you every step of the way. Let us help you take confident steps today and show you how to plan for retirement with clarity and peace of mind.
