When Should I Start Planning for Retirement?


Welcome to another edition of Money in Motion by West Advisory Group! In today’s discussion, we delve into a crucial question that many people ask: “When should I start planning for retirement?” In this video, our founder and CEO, Walt West, explores the optimal timeline and key considerations for a successful retirement plan. Below, we provide an overview of the key points discussed in the video.

The Five-Year Rule: Optimal Timing for Retirement Planning

Walt West emphasizes the importance of starting serious retirement planning five years before your desired retirement date. This timeline, referred to as the “Five-Year Rule,” allows ample time to address all necessary components to ensure a smooth transition from the accumulation phase to the distribution phase of retirement.

Key Considerations for Retirement Planning

Estate Planning

One of the first steps in retirement planning is to review and update your estate plan. Ensure all your legal documents, such as wills and power of attorney, are in place and current. Estate planning is essential to protect your assets and ensure that your wishes are carried out.

Tax Planning

Understanding your tax situation in retirement is crucial. Whether you expect to pay more or fewer taxes, having a clear strategy can help minimize your tax liability. Starting this planning five years in advance gives you enough time to make necessary adjustments.

Income Strategy

Determining your income sources in retirement is another critical aspect. Consider whether you will rely on Social Security, pensions, or other investments. Understanding your income flow will help you manage your finances effectively during retirement.

Risk Management

Managing risk is vital both before and during retirement. Identify potential risks and develop strategies to mitigate them. This proactive approach ensures that unforeseen events don’t derail your retirement plans.

Comprehensive Financial Plan

Finally, document all aspects of your retirement plan in a comprehensive financial plan. This plan should be dynamic and adaptable to changes, ensuring you stay on track despite any fluctuations in your circumstances.

Partners in Retirement

At West Advisory Group, we’ve seen it all when it comes to retirement planning.

We understand that while many factors are beyond our control, there are crucial elements that we can master to ensure a smooth transition into retirement.

That’s why we developed our signature PEAK FORMula, a comprehensive process designed to handle the ebbs and flows of retirement life.

Our PEAK FORMula has been meticulously crafted to address all aspects of retirement planning, providing clarity, confidence, and peace of mind. Our team of experts is perfectly matched to assist those who are five years or less away from retirement, helping you move seamlessly from the accumulation phase of your working life to the distribution phase of retirement.