Successful professionals spend their careers pursuing financial stability and independence. Even if the culmination of their professional lives seems distant, it’s never too soon to start retirement planning. Taking action now can make a big difference later.
This guide takes you through some essential steps and approaches to retirement planning, no matter where you are in your career. Learn how to make moves now to give you the best chance of a rewarding retirement.
Define Your Retirement Planning Goals
The first step in retirement planning isn’t about money—it’s about your aspirations. You may want to travel the world. You may want to devote time to charitable causes. You may want to pursue projects you’re passionate about.
There are also practical matters to think about. Perhaps you want to downsize your home or join a retirement community.
Take time to envision the retirement you want to experience. Remember to factor in the possibility of inflation in the future. But at this stage, it’s still fair to dream.
Review Your Current Finances
After you’ve created a picture of your retirement, it’s time to assess where you stand financially. Along with retirement accounts, this process should take savings, investments, real estate, and any supplemental income into account. Try to find any gaps that stand between your current responsibilities and your future needs.
With this information in hand, you can begin adjusting to maximize your retirement planning. This may include scaling back your spending habits or reallocating capital to diversify your portfolio. Find ways to take advantage of both short-term growth investments and those with long-term, steady value.
Max Out Your Retirement Contributions
The closer you are to retirement, the more necessary it is to maximize your contributions to your 401(k) or IRA. The Internal Revenue Service (IRS) adjusts its limits on annual contributions every year. In 2025, you can contribute up to $23,500 to your 401(k) account and $7,000 to IRAs. If you’re starting late, you may qualify for higher contributions to catch up under the SECURE 2.0 Act of 2022.
Maxing out your contributions is especially beneficial if your employer matches your funds—that’s basically free money. Additionally, look into plans that come with tax advantages, like Roth IRAs or health savings accounts (HSAs).
Account for Healthcare Costs
Older citizens have more healthcare needs. Some of them aren’t covered by Medicare, so it’s necessary to look into other options to fill the gaps. Supplemental insurance, long-term care plans, and HSAs can go a long way toward paying future medical costs.
Also, think about what living options best fit your health profile. They might include in-home care or assisted living facilities. Factor in those expenses in retirement planning now. You may not end up needing them, but it’s better to be over-prepared than caught off guard.
Look Into Supplemental Income Streams
Planning to live entirely off your retirement account can be risky. Consider generating more income streams in retirement. This may include investment dividends. You could own rental properties, do consulting, or start a side business. The more diverse your income stream, the better chance you have in market downturns.
Personalized Retirement Planning With Emerj360
Now you know a few key building blocks of retirement planning. Even following through on two or three of these steps can make a significant difference in your preparedness for retirement.
It’s always worth having a financial coach on your side. Emerj360 works with professionals from all backgrounds to shore up their financial standing. When you contact us, our consultants take a close look at your unique situation and needs to come up with an efficient retirement strategy.
To schedule a meeting, call 833-637-5360 or book online here.
