7 Key Things to Consider as You Prepare for Retirement

If you're in your mid-50s or beyond, retirement is no longer a distant thought, it's the next chapter coming into focus. But even if you’ve saved diligently, there are several important decisions ahead that can significantly impact your financial future.

Here are seven key areas to review as you prepare to retire with confidence:

1. Make Your Money Last, Strategically

You’ve spent decades building your nest egg, now it’s time to make sure it supports your lifestyle for potentially 20–30+ years. The key is balancing withdrawals with income sources like Social Security, pensions, and investments. There are even options that can turn a portion of your asset balances into predictable, recurring streams of income that can last as long as you do that might be evaluated and considered for a portion of your base expenses that you feel must absolutely be covered. A well-thought-out withdrawal strategy can help extend the life of your portfolio, minimize taxes, and reduce stress in retirement.

2. Adjust for Shifting Risk Tolerance

As retirement nears, your ability to recover from market downturns diminishes. That doesn’t mean eliminating all risk, but it may mean adjusting your portfolio to reflect a more conservative allocation. Recent innovations in some methods for managing money have made it possible to mitigate risks while continuing to pursue growth needed to exceed the drag of taxes and inflation that doesn’t stop when you quit working and if you’re not familiar with those, a discussion with an advisor who is could likely provide some valuable perspective.  Now is a good time to reassess your investment mix and ensure it still aligns with your goals, timelines, and risk tolerance.

3. Consider Rolling Over Your 401(k)

When you retire, you typically have the option to roll your 401(k) into an IRA. Doing so can give you more control over your investments, access to a wider range of options, and potentially lower fees. It’s important to weigh the pros and cons of this move, particularly when it comes to taxes, required minimum distributions (RMDs), and consolidation.

4. Maximize Contributions While You Can

If you’re still working, take advantage of catch-up contributions allowed after age 50. For 2025, that means you can contribute an extra $7,500 to your 401(k) and an additional $1,000 to an IRA. These final working years are critical for boosting your retirement savings and closing any potential gaps.

5. Don’t Overlook Tax Planning

Tennessee retirees enjoy the benefit of no state income tax, which can be a welcome relief, but federal taxes still apply to IRA withdrawals, Social Security (in some cases), and other income sources. A few key tax-smart strategies to consider include:

• Timing withdrawals to stay in a lower tax bracket
• Performing Roth conversions during low-income years
• Managing your RMDs efficiently
• Being strategic about charitable giving, especially with Qualified Charitable Distributions (QCDs) from IRAs

A financial advisor can help you craft a retirement income strategy that maximizes your after-tax income and avoids common pitfalls.

6. Plan for Health Care and Long-Term Care

Healthcare is one of the most unpredictable and potentially expensive aspects of retirement. While Medicare offers a strong foundation, it doesn’t cover everything, especially long-term care services. Consider:

• Supplemental health insurance (Medigap or Medicare Advantage plans)
• Long-term care insurance or hybrid life policies
• Building a care plan for aging in place

If staying in your home in Middle Tennessee is important to you, start thinking about how your home, finances, and support system can make that possible. There are excellent local resources in the Nashville area, from elder care specialists and in-home care providers, that can be part of your plan.

7. Make a Plan for Social Security

When to start claiming Social Security is one of the most important decisions you’ll make. Start too early, and you could lock in a lower benefit for life. Delay, and your monthly benefit increases. The “right” time depends on your income needs, life expectancy, spousal benefits, and retirement goals. A personalized analysis can make all the difference.

Pulling the Right Levers With Confidence

Preparing for retirement isn’t about finding a one-size-fits-all formula. It’s about understanding the “levers” available to you - how much you spend, when you claim Social Security, how you invest, how you plan for taxes and health care, and making adjustments that fit your specific life.

That’s where a financial advisor can add real value. Experienced financial advisors have likely helped scores of others through the retirement transition, and that “been there, done that” perspective can help avoid some of the more common mistakes “rookie retirees” may be prone to making doing it for themselves.  By helping you navigate the emotional and financial complexities of retirement, a good advisor becomes your partner in making informed, confident decisions—so you can focus on living the life you’ve worked so hard for.

If you're approaching retirement and wondering how to tie all the pieces together, let’s connect. Based in Nashville, I understand the unique financial landscape of Middle Tennessee and would be honored to help you craft a retirement plan that reflects your goals, values, and vision for the future.

As a fiduciary financial advisor, I’m legally and ethically committed to putting your best interests first. That means no product sales quotas, no hidden agendas, and no one-size-fits-all solutions. Just transparent, personalized guidance designed to help you make confident, well-informed decisions as you navigate the years ahead.