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Retirement has a lot of moving parts, and planning for them can be overwhelming.
Taxes, investments, Social Security, estate planning, healthcare and income strategies all compete for attention, and many retirees end up postponing important decisions because they aren’t sure where to start.
As a CERTIFIED FINANCIAL PLANNER® and CEO of Peak Retirement Planning, I can tell you that the good news is that not every improvement requires a complete overhaul of your financial plan.
In fact, some of the most impactful retirement moves can be implemented relatively quickly.
While no single strategy is a silver bullet, taking action on a handful of key areas today could improve tax efficiency, simplify your finances and create more flexibility later in retirement.
Below are 10 retirement fixes worth considering.
1. Review whether Roth conversions make sense
For many retirees and pre-retirees, Roth conversions remain one of the most powerful tax-planning opportunities available (I talk about Roth conversions more in depth in my bestselling book I Hate Taxes, which you can request for free here).
The basic Roth conversion concept is straightforward: Move money from a traditional IRA into a Roth IRA, pay taxes on the converted amount today and enjoy tax-free withdrawals in the future.
This strategy can be especially attractive for retirees who expect a higher future taxable income from pensions, required minimum distributions (RMDs) and Social Security. By paying taxes now, while rates remain historically low, you could reduce future tax burdens and create greater flexibility later.
That said, Roth conversions are rarely as simple as they appear. They can affect Medicare premiums, Social Security taxation and other aspects of your tax return.
Before making a move, it’s important to run the numbers and look at them carefully.
2. Take advantage of available charitable tax benefits
Many retirees are charitable by nature, yet they often miss opportunities to maximize the tax benefits of their giving. Recent tax law changes have expanded charitable deduction opportunities for some taxpayers, even those who don’t itemize deductions.
A little organization today could result in significant tax savings when it’s time to file.
3. Improve your tax location strategy
Most investors focus heavily on asset allocation. Far fewer pay attention to asset location.
Asset allocation determines what you own, but asset location determines where you own it.
For example, growth-oriented investments might be more valuable inside Roth accounts because future appreciation could be tax-free.
Meanwhile, more conservative holdings could be appropriate inside tax-deferred retirement accounts.
Two investors can own identical portfolios yet experience very different tax outcomes depending on how their investments are positioned across account types.
Reviewing account placement might not require changing your investments at all, but it can have a meaningful impact over time.
4. Maximize retirement account contributions
Many workers increase their salaries over time but forget to increase their retirement contributions. If you’re still employed, review your current contribution levels to workplace plans, IRAs and health savings accounts (HSAs).
Contribution limits often increase, and individuals age 50 and older may qualify for additional catch-up contributions.
A small adjustment to your payroll deductions today could translate into thousands of additional dollars for retirement down the road.
5. Reevaluate where excess cash is sitting
Many retirees and near-retirees accumulate large balances in savings accounts or taxable brokerage accounts while underutilizing tax-advantaged retirement vehicles.
If you have excess cash and are eligible to contribute to retirement accounts, consider whether those dollars could be working harder in a Roth IRA, Roth 401(k), traditional IRA or HSA.
In many cases, repositioning existing assets can improve long-term tax efficiency without changing your overall investment strategy.
6. Become more tax-efficient in taxable accounts
For investors with substantial brokerage accounts, tax management can be just as important as investment management.
One opportunity many people overlook is tax-loss harvesting, which involves realizing investment losses to offset gains or reducing taxable income. Over time, these tax savings can add up significantly.
Investors with larger taxable portfolios could also benefit from strategies such as direct indexing, which can provide additional opportunities to harvest losses while maintaining market exposure.
Even modest improvements in tax efficiency can create significant long-term value.
7. Audit your mutual funds
Many investors continue to hold mutual funds purchased years ago without reviewing whether those holdings remain appropriate. Some mutual funds carry higher internal expenses than comparable ETFs or index funds, and others may generate taxable distributions that create unexpected consequences in brokerage accounts.
Conducting a mutual fund audit doesn’t necessarily mean replacing every holding.
However, reviewing expenses, tax efficiency and performance relative to alternatives can help identify opportunities for improvement.
8. Update your estate planning documents
This might be the least exciting item on the list, but it could be among the most important.
Wills, trusts, powers of attorney and healthcare directives are foundational components of a retirement plan, and yet, most Americans either don’t have these documents or haven’t reviewed them in years.
Life changes. Laws change. Family circumstances change. If your estate plan hasn’t been updated recently, now may be the time to revisit it.
Equally important, make sure beneficiary designations on retirement accounts and insurance policies align with your overall plan and goals.
9. Simplify and consolidate accounts
Many retirees accumulate accounts over decades of employment. A former 401(k) here. An IRA there. A brokerage account somewhere else. Before long, keeping track of everything becomes unnecessarily complicated.
Consolidation might not improve investment returns, but it can make your finances easier to track.
It could also simplify tax reporting, improve organization and reduce confusion for spouses or heirs if something happens to you.
Sometimes the greatest benefit isn’t financial performance; it’s peace of mind.
10. Don’t forget to enjoy the money
This final fix may be the most challenging one for diligent savers. Many successful retirees spent 30 or 40 years accumulating wealth and have developed strong saving habits, avoided lifestyle inflation and consistently prioritized financial security.
The challenge is that those same habits can make it difficult to spend money in retirement. Retirees still need a plan to avoid overspending, but many aren’t in danger of running out of money; they’re in danger of never fully enjoying what they’ve worked so hard to build.
Whether it’s traveling with family, helping children and grandchildren, supporting charitable causes or simply creating memorable experiences, retirement isn’t just about preserving assets; it’s about using those assets to support the life you want to live.
After all, while running out of money is a legitimate concern, running out of time might be the greater risk.
The most successful retirement plans balance both sides of the equation: They protect your future while giving you permission to enjoy the present.
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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.
