1. Start With Clarity (and a Calculator)
One of the biggest mistakes people make in retirement planning is assuming they’ll “figure it out as they go.” That works for a road trip, but not for the next 20 to 30 years of your life.
Financial planners recommend starting with clarity: run your numbers. Use online retirement calculators (many are free) or work with a professional to see where you stand.
That means plugging in:
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How much you’ve saved so far
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What you’re contributing or plan to contribute until retirement
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Your expected expenses — not just food and housing, but health care, travel, hobbies, even gifts for the grandkids
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Big purchases you see in your future — maybe downsizing, a new car, or even a dream trip
It may feel overwhelming, but here’s the mindset shift: numbers are not there to scare you, they’re there to guide you. Knowing your starting point is the first step toward building a plan that works.
2. Take Advantage of a Roth 401(k)
If you’re still working and your employer offers a Roth 401(k), consider it a gift. Unlike a traditional 401(k), where contributions are pre-tax but withdrawals later are taxable, Roth 401(k)s let you pay the taxes now and take money out tax-free in retirement.
Here’s why that matters:
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There are no income limits on Roth 401(k) contributions (unlike Roth IRAs).
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You’re essentially locking in today’s tax rate — which could save you a fortune if rates rise in the future.
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Having Roth money gives you flexibility when you start taking distributions or Social Security. You won’t be forced into a higher tax bracket just to cover expenses.
For seniors nearing retirement, this strategy is especially powerful if you’re still working part-time or consulting. Even small contributions now can add tax-free growth to your future.
