Sign up to save your podcasts
Or
Share Retiring Next Year? Do THIS With Your Retirement Savings!
Share to email
Share to Facebook
Share to X
Share to email
Share to Facebook
Share to X
Or
Retiring Next Year? Do THIS With Your Retirement Savings!
5 Steps to prepare your savings within 12 months of your retirement.
When you’re on the verge of retirement, say within the next 12 months, you might think you’ve done everything you need to do: saving diligently, investing wisely, and maybe even attending a webinar or two. But have you truly prepared for the retirement you want? Based on real-life examples from my financial planning practice, I’ve found that many retirees wait too long to make crucial decisions about their savings and investments. Today, I’ll share some insights to help you avoid common pitfalls and ensure you’re ready for retirement when the time comes.
Waiting to Plan Can Cost You
Recently, I looked at data from our retirement webinars and noticed something surprising: most people attend our webinars after they’ve retired, not before. While it’s a good idea for anyone to join these webinars regardless of where you’re at in the retirement process, doing so before you retire could make a significant difference in the quality and security of your retirement.
If you’re planning to retire next year, you should start taking concrete steps now. Market fluctuations, unexpected health issues, or even company layoffs could drastically alter your timeline. Proactive planning is essential, especially when you’re this close to retiring.
Lessons from Real-Life Retirees
Let me share two real stories from my clients that illustrate the importance of early retirement planning. In the fall of 2019, I met with a gentleman who was planning to retire on April 1, 2020. He liked our five-step retirement plan but decided to wait until he officially retired to start working with us. Unfortunately, just before his planned retirement date, the stock market dropped by 12% in a single day, and his portfolio took a significant hit. In March 2020, the market crash coincided with the onset of the COVID-19 pandemic, further complicating his situation. He contracted COVID-19 and ended up postponing his retirement every year—for 4 years. Starting his retirement plan earlier would have likely reduced the impact of the market downturn on his retirement savings and helped him hit his retirement target.
Another couple I worked with in 2019 were also approaching retirement, about two years out. After reviewing their portfolio, we discovered that they were taking on more risk than they realized. We adjusted their investments, cutting their exposure to market volatility by half. When the market dropped in March 2020, they were able to sustain their retirement plan because of the work we had done to restructure their portfolio. They stayed on course and retired exactly on time, enjoying their post-retirement life with grandkids and the retirement income they had planned for.
Don’t Wait for a Perfect Moment—It May Never Come
One of the biggest mistakes I see is people waiting for the “perfect” retirement date or market condition before they take action. A couple of my clients were planning to retire at the end of 2020, hoping to continue growing their 401(k)s until the final day. But when the market dropped by 30% in March 2020, they panicked, moved their investments into cash, and were then laid off in June. Then they called me in July, after they were forced to retire, after the market dropped, after they moved to cash and missed on the market recovery. These clients missed out on market recovery because they had no plan in place to adjust their investments as they neared retirement. Instead of trying to time the market or wait until the last minute, take action now to safeguard your savings.
The Retirement Red Zone: Why Timing Is Critical
If you’re within 10 years of retirement, you’re in what’s often called the “retirement red zone.” This period, which extends five years before and five years after your retirement date, is when market volatility can have the most significant impact on your retirement. During this time, a sudden market drop can lead to substantial losses that could take years to recover from, affecting the income you’ll have in retirement. By planning ahead and adjusting your portfolio, you can reduce the likelihood of such risks.
Key Steps for Pre-Retirees
So, what should you do if you’re planning to retire in the next 12 months? Here are five critical steps to take:
One of the easiest ways to estimate how much you’ll spend in retirement is by looking at your current take-home pay. Whatever shows up in your checking account now is likely what you’ll spend in retirement. Adjust this number for any anticipated changes, like paying off a mortgage or increased healthcare costs.
Retirement doesn’t mean you stop earning money. You’ll have Social Security, and possibly a pension or income from investments. Make sure to evaluate how you can maximize these sources. For example, delaying Social Security can increase your monthly benefit, especially if the higher earner in your household waits to claim.
Taxes in retirement can be complicated, and they often fluctuate depending on your income level. Develop a strategy to manage taxes over your lifetime, rather than focusing on reducing them in any given year. This way, you’ll keep more of your savings in the long run.
As you approach retirement, it’s essential to rethink your investment strategy. You’ll no longer have the luxury of time to recover from market downturns. Consider dividing your assets into short-term and long-term buckets. Money you’ll need in the next few years should be in more stable, low-risk investments, while funds for later years can remain in growth-oriented assets.
Finally, think about what you’ll leave behind. This includes not only financial assets for your loved ones but also a plan for managing any remaining debts or expenses. Planning your estate properly ensures that your legacy benefits your heirs without complications.
Start Your Planning Now
If you’re planning to retire soon, don’t wait until your retirement date to start making these critical decisions. By planning ahead, you’ll have peace of mind knowing that your savings are protected, and you’re set up for a successful retirement. For more guidance, visit FiveStepRetirementPlan.com and get started today!
Remember, it’s always better to be proactive. If you’re unsure where to begin, reach out, and let’s create a plan tailored to your needs.
Don’t forget to leave a rating for the “Retirement Revealed” podcast if you’ve been enjoying these episodes!
Subscribe to Retirement Revealed to get new episodes every Wednesday.
Apple Podcasts: https://podcasts.apple.com/us/podcast/retirement-revealed/id1488769337
Spotify Podcasts: https://bit.ly/RetirementRevealedSpotify
Additional Links:
Connect With Jeremy Keil:
===
Disclosures
Videos/Podcasts/Blogs (media) published prior to June 30, 2025, were recorded and approved while the advisor was affiliated with Thrivent Advisor Network. These media reflect the advisor’s views and interpretations at that time. The information and disclosures contained in those media were believed to be accurate and complete as of the date of recording, but may not reflect current market conditions or Alongside, LLC, policies.
All content is provided for educational purposes only and does not constitute personalized investment advice. Read below for current disclosures and potential conflicts of interest.
This media is provided for informational and educational purposes only and does not consider the investment objectives, financial situation, or particular needs of any consumer. Nothing in this program should be construed as investment, legal, or tax advice, nor as a recommendation to buy, sell, or hold any security or to adopt any investment strategy.
The views and opinions expressed are those of the host and any guest, current as of the date of recording, and may change without notice as market, political or economic conditions evolve. All investments involve risk, including the possible loss of principal. Past Performance is no guarantee of future results.
Legal & Tax Disclosure
Consumers should consult their own qualified attorney, CPA, or other professional advisor regarding their specific legal and tax situations.
Advisor Disclosures
Alongside, LLC, doing business as Keil Financial Partners, is an SEC-registered investment adviser. Registration does not imply a certain level of skill or expertise. Advisory services are delivered through the Alongside, LLC platform. Keil Financial Partners is independent, not owned or operated by Alongside, LLC.
Additional information about Alongside, LLC – including its services, fees and any material conflicts of interest – can be found at https://adviserinfo.sec.gov/firm/summary/333587 or by requesting Form ADV Part 2A.
The content of this media should not be reproduced or redistributed without the firm’s written consent. Any trademarks or service marks mentioned belong to their respective owners and are used for identification purposes only.
For important disclosures visit: https://keilfp.com/disclosures/
===
View all episodes
By Jeremy Keil
4.9
5858 ratings
5 Steps to prepare your savings within 12 months of your retirement.
When you’re on the verge of retirement, say within the next 12 months, you might think you’ve done everything you need to do: saving diligently, investing wisely, and maybe even attending a webinar or two. But have you truly prepared for the retirement you want? Based on real-life examples from my financial planning practice, I’ve found that many retirees wait too long to make crucial decisions about their savings and investments. Today, I’ll share some insights to help you avoid common pitfalls and ensure you’re ready for retirement when the time comes.
Waiting to Plan Can Cost You
Recently, I looked at data from our retirement webinars and noticed something surprising: most people attend our webinars after they’ve retired, not before. While it’s a good idea for anyone to join these webinars regardless of where you’re at in the retirement process, doing so before you retire could make a significant difference in the quality and security of your retirement.
If you’re planning to retire next year, you should start taking concrete steps now. Market fluctuations, unexpected health issues, or even company layoffs could drastically alter your timeline. Proactive planning is essential, especially when you’re this close to retiring.
Lessons from Real-Life Retirees
Let me share two real stories from my clients that illustrate the importance of early retirement planning. In the fall of 2019, I met with a gentleman who was planning to retire on April 1, 2020. He liked our five-step retirement plan but decided to wait until he officially retired to start working with us. Unfortunately, just before his planned retirement date, the stock market dropped by 12% in a single day, and his portfolio took a significant hit. In March 2020, the market crash coincided with the onset of the COVID-19 pandemic, further complicating his situation. He contracted COVID-19 and ended up postponing his retirement every year—for 4 years. Starting his retirement plan earlier would have likely reduced the impact of the market downturn on his retirement savings and helped him hit his retirement target.
Another couple I worked with in 2019 were also approaching retirement, about two years out. After reviewing their portfolio, we discovered that they were taking on more risk than they realized. We adjusted their investments, cutting their exposure to market volatility by half. When the market dropped in March 2020, they were able to sustain their retirement plan because of the work we had done to restructure their portfolio. They stayed on course and retired exactly on time, enjoying their post-retirement life with grandkids and the retirement income they had planned for.
Don’t Wait for a Perfect Moment—It May Never Come
One of the biggest mistakes I see is people waiting for the “perfect” retirement date or market condition before they take action. A couple of my clients were planning to retire at the end of 2020, hoping to continue growing their 401(k)s until the final day. But when the market dropped by 30% in March 2020, they panicked, moved their investments into cash, and were then laid off in June. Then they called me in July, after they were forced to retire, after the market dropped, after they moved to cash and missed on the market recovery. These clients missed out on market recovery because they had no plan in place to adjust their investments as they neared retirement. Instead of trying to time the market or wait until the last minute, take action now to safeguard your savings.
The Retirement Red Zone: Why Timing Is Critical
If you’re within 10 years of retirement, you’re in what’s often called the “retirement red zone.” This period, which extends five years before and five years after your retirement date, is when market volatility can have the most significant impact on your retirement. During this time, a sudden market drop can lead to substantial losses that could take years to recover from, affecting the income you’ll have in retirement. By planning ahead and adjusting your portfolio, you can reduce the likelihood of such risks.
Key Steps for Pre-Retirees
So, what should you do if you’re planning to retire in the next 12 months? Here are five critical steps to take:
One of the easiest ways to estimate how much you’ll spend in retirement is by looking at your current take-home pay. Whatever shows up in your checking account now is likely what you’ll spend in retirement. Adjust this number for any anticipated changes, like paying off a mortgage or increased healthcare costs.
Retirement doesn’t mean you stop earning money. You’ll have Social Security, and possibly a pension or income from investments. Make sure to evaluate how you can maximize these sources. For example, delaying Social Security can increase your monthly benefit, especially if the higher earner in your household waits to claim.
Taxes in retirement can be complicated, and they often fluctuate depending on your income level. Develop a strategy to manage taxes over your lifetime, rather than focusing on reducing them in any given year. This way, you’ll keep more of your savings in the long run.
As you approach retirement, it’s essential to rethink your investment strategy. You’ll no longer have the luxury of time to recover from market downturns. Consider dividing your assets into short-term and long-term buckets. Money you’ll need in the next few years should be in more stable, low-risk investments, while funds for later years can remain in growth-oriented assets.
Finally, think about what you’ll leave behind. This includes not only financial assets for your loved ones but also a plan for managing any remaining debts or expenses. Planning your estate properly ensures that your legacy benefits your heirs without complications.
Start Your Planning Now
If you’re planning to retire soon, don’t wait until your retirement date to start making these critical decisions. By planning ahead, you’ll have peace of mind knowing that your savings are protected, and you’re set up for a successful retirement. For more guidance, visit FiveStepRetirementPlan.com and get started today!
Remember, it’s always better to be proactive. If you’re unsure where to begin, reach out, and let’s create a plan tailored to your needs.
Don’t forget to leave a rating for the “Retirement Revealed” podcast if you’ve been enjoying these episodes!
Subscribe to Retirement Revealed to get new episodes every Wednesday.
Apple Podcasts: https://podcasts.apple.com/us/podcast/retirement-revealed/id1488769337
Spotify Podcasts: https://bit.ly/RetirementRevealedSpotify
Additional Links:
Connect With Jeremy Keil:
===
Disclosures
Videos/Podcasts/Blogs (media) published prior to June 30, 2025, were recorded and approved while the advisor was affiliated with Thrivent Advisor Network. These media reflect the advisor’s views and interpretations at that time. The information and disclosures contained in those media were believed to be accurate and complete as of the date of recording, but may not reflect current market conditions or Alongside, LLC, policies.
All content is provided for educational purposes only and does not constitute personalized investment advice. Read below for current disclosures and potential conflicts of interest.
This media is provided for informational and educational purposes only and does not consider the investment objectives, financial situation, or particular needs of any consumer. Nothing in this program should be construed as investment, legal, or tax advice, nor as a recommendation to buy, sell, or hold any security or to adopt any investment strategy.
The views and opinions expressed are those of the host and any guest, current as of the date of recording, and may change without notice as market, political or economic conditions evolve. All investments involve risk, including the possible loss of principal. Past Performance is no guarantee of future results.
Legal & Tax Disclosure
Consumers should consult their own qualified attorney, CPA, or other professional advisor regarding their specific legal and tax situations.
Advisor Disclosures
Alongside, LLC, doing business as Keil Financial Partners, is an SEC-registered investment adviser. Registration does not imply a certain level of skill or expertise. Advisory services are delivered through the Alongside, LLC platform. Keil Financial Partners is independent, not owned or operated by Alongside, LLC.
Additional information about Alongside, LLC – including its services, fees and any material conflicts of interest – can be found at https://adviserinfo.sec.gov/firm/summary/333587 or by requesting Form ADV Part 2A.
The content of this media should not be reproduced or redistributed without the firm’s written consent. Any trademarks or service marks mentioned belong to their respective owners and are used for identification purposes only.
For important disclosures visit: https://keilfp.com/disclosures/
===
More shows like Retire Today
View all
The Stacking Benjamins Show
1,994 Listeners
Sound Retirement Radio
443 Listeners
Your Money, Your Wealth
804 Listeners
Retirement Answer Man
1,300 Listeners
Retire Sooner with Wes Moss
456 Listeners
Retirement Starts Today
538 Listeners
The Retirement and IRA Show
753 Listeners
Big Picture Retirement®
549 Listeners
Stay Wealthy Retirement Podcast
673 Listeners
The Retirement Wisdom Podcast
191 Listeners
Ready For Retirement
824 Listeners
The Rob Berger Show
202 Listeners
Early Retirement - Financial Freedom (Investing, Tax Planning, Retirement Strategy, Personal Finance)
586 Listeners
Retirement Planning Education, with Andy Panko
1,060 Listeners
Catching Up to FI
351 Listeners