Our recent article, “Preserving the Value of Your Retirement Plan,” made an important point: a strong account balance is not the same as a strong retirement. What matters more is whether your plan can support your lifestyle as costs rise, markets shift, and responsibilities change.
If that idea resonated with you, use this checklist as a starting point for your next review, whether that review happens on your own or with your financial advisor.
1. Check your plan against rising costs, not just today’s budget.
Inflation works quietly, but its effect compounds over a retirement that can last decades. Ask whether your plan accounts for higher costs in areas like housing, healthcare, and everyday goods, not just your current spending.
2. Separate market noise from your actual timeline.
Volatility feels different close to retirement because there is less time to recover from a downturn. Before reacting to a headline, revisit your actual time horizon and how your plan is built to handle short-term swings.
3. Account for competing financial responsibilities.
Many people approaching retirement are supporting children, helping aging parents, and managing rising household costs at the same time. List your current obligations honestly and make sure your plan reflects them, rather than assuming they will sort themselves out.
4. Watch for costs that increase over time, not just once.
Healthcare expenses and policy changes, such as adjustments to taxes or Medicare premiums, tend to grow rather than stay flat. Build in room for these costs to increase instead of planning around a single fixed estimate.
5. Confirm your plan is coordinated, not just complete.
Having a 401(k), an IRA, and other accounts is not the same as having a coordinated plan. Make sure your income sources, expenses, and timelines are working toward the same goal, and that gaps are identified before they become problems.
Why This Matters Now
None of these steps require predicting the future. They simply require an honest look at where your plan stands today. A short conversation now, focused on these five areas, can prevent a much harder conversation later.
If it has been a while since your plan was reviewed with today’s realities in mind, that alone is worth addressing. The team at Cramer Capital Management can help you work through this checklist, identify where adjustments make sense, and provide clarity during periods of uncertainty. Call 913-948-6770 to schedule an appointment and review your current plan.
All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful. Investors should consider their financial ability to continue to purchase through periods of low price levels.