Building wealth is one achievement. Turning that wealth into a retirement that provides ongoing security, flexibility, and purpose is another.
For high-net-worth individuals, retirement planning does not stop when the paychecks do. Managing substantial assets often brings its own set of decisions, from determining how much to withdraw and when, to managing taxes, investment risk, healthcare expenses, and the transfer of wealth to the next generation.
At CKS Summit Group, we help individuals and families approaching or living in retirement develop strategies designed around their goals, priorities, and financial circumstances. While every retirement plan is different, successful retirees often share certain habits that help them stay proactive and intentional with their wealth.
Here are 10 habits that could be with incorporating into your own retirement strategy.
*The information in this article is for educational purposes only and is not intended as financial, investment, tax, or legal advice. Individual circumstances vary, and strategies discussed may not be appropriate for everyone.
1. They Take an Active Role in Their Financial Plan
Wealthy retirees do not simply set a retirement plan and forget about it. They understand that their financial circumstances, goals, tax situation, and the economic environment can change over time.
They stay engaged with important areas of their financial lives, including retirement income, investments, taxes, insurance, estate planning, and long-term goals. Rather than reacting to every headline or market movement, they regularly review their overall strategy and make adjustments when circumstances warrant.
Tip: Schedule regular reviews of your retirement plan. Look beyond investment performance and consider whether your income strategy, tax strategy, risk level, and long-term goals are still aligned.
2. They Plan for Healthcare Costs Before They Need Them
Healthcare can become one of the most significant expenses during retirement. Medicare can cover many healthcare needs, but it does not mean every expense will be covered.
Successful retirees consider healthcare as part of their overall retirement income plan rather than treating it as an unexpected expense. They think about Medicare, supplemental coverage, prescription costs, potential long-term care needs, and how healthcare expenses could change as they age.
Planning ahead can also help you determine how much income you may need throughout different stages of retirement.
Tip: Include healthcare and potential long-term care costs when estimating your retirement expenses. Your plan should account for both expected costs and expenses that could arise later in life.
3. They Keep Their Investment Strategy Aligned With Their Goals
Retirement can change the way you think about investing.
During your working years, the primary focus may be accumulating wealth. Once you retire, your portfolio may need to support income, preserve capital, manage risk, and continue providing growth potential over a potentially long retirement.
Wealthy retirees understand that diversification is an important part of that process. They avoid allowing one investment, sector, or asset class to become an unintended source of portfolio risk.
They also recognize that diversification is not a one-time decision. As investments perform differently over time, a portfolio can help gradually move away from its intended allocation.
Tip: Review your portfolio regularly to help determine whether your current allocation still reflects your goals, risk tolerance, and retirement time horizon. Rebalancing may be appropriate when your portfolio has drifted significantly from your intended strategy.
4. They Make Tax Planning Part of Retirement Planning
Taxes can have a meaningful impact on how much of your retirement income you actually get to keep.
Wealthy retirees understand that tax planning should not be limited to filing a tax return once a year. They consider how different sources of income, account types, withdrawals, and financial decisions may affect their overall tax picture.
For example, depending on your circumstances, you may need to coordinate withdrawals from traditional retirement accounts, Roth accounts, and taxable investments. Required minimum distributions can also become an important part of the conversation once they apply.
For some retirees, Roth conversions during lower-income years may be worth exploring. Others may benefit from different withdrawal strategies.
Tip: Consider your tax strategy several years at a time instead of focusing only on the current tax year. A strategy that makes sense today may look very different as your income and retirement circumstances change.
5. They Know Where Their Retirement Income Will Come From
A successful retirement is about more than knowing how much you have saved. You also need a strategy for turning those assets into sustainable income.
Wealthy retirees understand the difference between having a large portfolio and having a well-designed retirement income strategy. They consider Social Security, investment income, retirement account withdrawals, pensions, business income, real estate income, and other potential sources of cash flow.
They also think about how their income needs may change over time. Retirement spending is rarely identical from the day you retire through your later years.
Tip: Create a retirement income plan that accounts for both your current lifestyle and the possibility that your spending priorities will change. Know which accounts and income sources you expect to use and when.
6. They Plan for RMDs Instead of Treating Them as a Surprise
Required minimum distributions are a reality for many retirees with tax-deferred retirement accounts. But an RMD does not have to be viewed as simply another withdrawal to spend.
Depending on your circumstances, an RMD can help become part of a broader tax and portfolio strategy. If you do not need the money for living expenses, you may have options for putting those funds to work elsewhere. Required withdrawals may also create an opportunity to help rebalance your portfolio by taking distributions from investments that have become overrepresented.
For retirees who are charitably inclined, qualified charitable distributions may also be worth discussing with a financial and tax professional.
Tip: Do not wait until an RMD is due to think about what you want to do with it. Incorporate required distributions into your broader retirement income, tax, investment, and charitable giving strategies.
7. They Think Beyond Their Own Lifetime
Wealthy retirees often have more complex estate and legacy considerations. Their goals may extend beyond maintaining their own lifestyle to helping children and grandchildren, supporting charitable organizations, or preserving assets for future generations.
That makes estate planning an important part of wealth management.
A comprehensive estate plan may involve wills, trusts, beneficiary designations, powers of attorney, and other documents and strategies. It is also important to make sure these elements continue to reflect your wishes as your family and financial circumstances change.
Estate planning is not only about what happens after you die. It is also about making sure the right people have the authority to help manage your affairs if you become unable to do so yourself.
Tip: Review your estate plan and beneficiary designations periodically, particularly after major life events or significant changes in your financial situation. Coordinate with the appropriate legal and financial professionals to help ensure your plan reflects your current wishes.
8. They Revisit Their Goals as Life Changes
The retirement you imagine at 60 may not be the retirement you want at 75.
Early retirement may be filled with travel, new experiences, hobbies, or time with family. Later, your priorities may shift toward healthcare, family, charitable giving, or simply enjoying a slower pace of life.
Wealthy retirees understand that financial planning should accommodate those changes rather than force them into a rigid plan.
They revisit questions such as:
- What do I want my retirement to look like?
- How much do I want to spend on travel and experiences?
- How much do I want to leave to my family?
- What causes or organizations do I want to support?
- How might my priorities change as I age?
Tip: Revisit your retirement goals regularly. Your financial strategy should support the life you want today while remaining flexible enough to help accommodate tomorrow’s changes.
9. They Give With Intention
For many affluent retirees, wealth is about more than personal financial security. It can also provide an opportunity to support family members, charitable organizations, and causes they care about.
Strategic charitable giving can be incorporated into a broader retirement and tax strategy. Depending on your circumstances, tools such as qualified charitable distributions, donor-advised funds, or charitable trusts may be worth exploring.
The important thing is to make giving part of the plan rather than treating it as an afterthought.
Tip: If charitable giving is important to you, discuss your goals with your financial, tax, and legal professionals. There may be ways to structure your giving that align with both your charitable objectives and your broader financial plan.
10. They Invest in More Than Their Portfolio
Financial wealth is only one part of a fulfilling retirement.
Successful retirees also invest time and attention in their health, relationships, interests, and sense of purpose. They recognize that having the financial resources to retire comfortably is most valuable when those resources allow them to enjoy the life they have worked to build.
That may mean prioritizing exercise and preventative healthcare, spending more time with family, pursuing hobbies, traveling, volunteering, or finding new ways to stay engaged.
Your financial plan should ultimately support those priorities.
Tip: Think about what you want your money to make possible. A retirement strategy should not only answer “Will I have enough?” It should also help answer “What do I want my retirement to look like?”
The Common Thread: They Plan Ahead
The habits of successful retirees have something important in common: they are proactive.
They do not wait for a market downturn to think about investment risk. They do not wait for a major tax bill to think about taxes. They do not wait until a healthcare event to consider healthcare costs. And they do not wait until an estate needs to be settled to think about their legacy.
Instead, they revisit their financial strategy as their lives evolve.
That does not mean predicting every change or reacting to every headline. It means having a strategy that can adapt when your circumstances change.
Build a Retirement Strategy Around Your Goals
For high-net-worth individuals, retirement planning involves more than determining whether you have accumulated enough assets. It requires coordinating investments, income, taxes, healthcare, estate planning, and the goals that matter most to you.
At CKS Summit Group, we take a comprehensive approach to retirement planning designed to help clients make informed decisions throughout retirement. Our SMART Retirement™ approach, Strategic Movement Around Retirement Taxation, focuses on coordinating retirement and tax strategies with your broader financial goals.
Your retirement should be about more than protecting what you have built. It should be about using your wealth intentionally to support the life you want and the legacy you hope to leave.
Ready to take a closer look at your retirement strategy? Visit summitgp.com to learn more about CKS Summit Group and our approach to retirement planning.
Retirement Planning FAQs
Q1) How much money do I need to retire comfortably?
There is no universal retirement savings number that works for everyone. The amount you need depends on your lifestyle, anticipated expenses, healthcare needs, income sources, investment strategy, tax situation, and how long your retirement may last.
A personalized retirement income analysis can help you determine whether your assets and expected income sources are aligned with your goals.
Q2) When should I start planning for retirement?
The earlier you begin, the more opportunities you generally have to build savings, manage risk, and make strategic decisions. However, it is never too late to take a closer look at your retirement strategy.
For those approaching retirement, planning becomes particularly important because decisions around income, taxes, investments, healthcare, and Social Security can have long-term consequences.
Q3) How can I make my retirement income last?
Creating sustainable retirement income involves more than following a single withdrawal rule. Your strategy should account for your spending needs, portfolio allocation, taxes, other income sources, market conditions, and longevity.
Regularly reviewing your withdrawal strategy can help you adapt as your circumstances change.
Q4) What are RMDs, and how should I plan for them?
Required minimum distributions, or RMDs, are withdrawals that generally must be taken from certain tax-deferred retirement accounts once you reach the applicable starting age.
RMD planning can involve more than simply taking the required amount. Depending on your situation, you may be able to incorporate RMDs into your portfolio rebalancing, charitable giving, and broader tax strategy.
Q5) Should I consider a Roth conversion before retirement?
A Roth conversion involves moving assets from a traditional retirement account into a Roth account and generally paying taxes on the converted amount. Whether a conversion makes sense depends on factors such as your current and expected future tax rates, income, retirement timeline, and overall financial strategy.
For some retirees and pre-retirees, the years between retirement and the start of RMDs may provide an opportunity to evaluate Roth conversions.
Because Roth conversions can have significant tax consequences, consult with your financial and tax professionals before making a decision.
Q6) How often should I review my retirement plan?
Your retirement plan should be reviewed regularly and whenever there is a significant change in your life or financial situation. This may include retirement, a major market change, an inheritance, a change in family circumstances, a large purchase, or changes to your income or tax situation.
The goal is not to constantly change your strategy. It is to help ensure your strategy continues to reflect where you are and where you want to go.
Disclaimer: The information in this article is for educational purposes only and is not intended as financial, investment, tax, or legal advice. Individual circumstances vary, and strategies discussed may not be appropriate for everyone. Please consult with a qualified financial advisor, tax professional, or legal professional before making decisions regarding your financial situation. CKS Summit Group does not provide specific tax or legal advice.
