13 Smart Moves to Make When You Are Within One Year of Retirement
Do you have a coworker who keeps saying every January this is his “last year”, yet he still hasn’t pulled the trigger. As much as we like to think that retirement is all about savings and Social Security, there is a huge emotional component as well, and the closer you get to making the big decision the scarier it can become. The shift from a steady paycheck and daily work routines to a new rhythm of life can be both exciting and overwhelming. And if you’re starting to approach retirement age, you might want to make sure you’re doing everything right in your last year so you don’t turn into Steve from Accounts Payable that’s always “6 months away” from retiring.
If you are within a year of retiring, the countdown is on, and every decision matters. Think of it as preparing for the biggest vacation of your life, only this one does not end in two weeks. From tightening up your finances to envisioning your daily routine, there are plenty of smart steps you can take right now to make sure the transition is smooth and stress-free.
~Our Debt Free Family
This article highlights steps you can take during the year leading up to retirement to ensure a smoother transition. As you might have guessed, the number one tip is to stress-test your financial plan to see how it holds up against market swings, inflation, or longer life expectancy. And if you haven’t started already, you might want to spend your last working year building a cash cushion. This way, you don’t have to sell your investments right away if the market takes a nose dive the day after you retire. Many retirees focus on the financial piece. However, the article also highlights lifestyle steps, like simplifying accounts, updating estate documents, and imagining what your daily routine will actually look like. If you’re nearing retirement, it’s worth checking out this article and making sure you’re setting yourself up for success.
You Could Be Losing Thousands in Retirement — And Not Even Know It
How much have you thought about retirement? Most people focus on how much they save, assuming that careful investing and decades of contributions will naturally translate into financial security later in life. But retirement planning isn’t just about building a large nest egg. In fact, a big part of planning is also about protecting it. Taxes, timing decisions, and withdrawal strategies can quietly chip away at income if they aren’t coordinated carefully. That’s why many retirees discover too late that small missteps made years earlier have permanently reduced their retirement income. Understanding how these pieces fit together can make a surprising difference in how far your savings actually go.
Reducing taxes in retirement is often about managing your “Combined Income.” This is the specific formula the IRS uses, which includes your Adjusted Gross Income (AGI), non-taxable interest, and half of your Social Security benefits, to decide if your benefits are taxable.
~A Dime Saved
The article explains that many retirees lose thousands of dollars not because they saved too little, but because they overlooked tax planning and Social Security strategy. The article quotes investment advisor Stephen Dissette who highlights several ways to protect retirement income, starting with managing the IRS “combined income” formula that determines whether Social Security benefits become taxable. One key strategy is using Roth conversions during the years between retirement and claiming Social Security, which can reduce future required minimum distributions and lower taxes later. Another approach is using Qualified Charitable Distributions to donate directly from an IRA, allowing retirees to satisfy required withdrawals without increasing taxable income. The article also stresses the value of delaying Social Security until age 70, which boosts benefits by about 8% annually and increases survivor protection for spouses. The article contains several other key facts to consider and is definitely worth a read.
15 Risky Habits Wrecking Your Budget
Do you think you’re “bad with money”? If so, you might be wondering how some people have it all together while you’re falling farther in debt. For many people, financial trouble doesn’t come from one dramatic mistake but instead it grows from small habits that quietly chip away at stability over time. Some choices feel harmless in the moment, while others seem like shortcuts to quick success. But when risky financial behaviors pile up, they can create serious setbacks that are hard to recover from. The tricky part is that many of these habits are incredibly common, making them “normal” instead of a problem. This article highlights some behaviors that don’t seem reckless but could quietly be the reason you’re falling behind.
By making smarter decisions and planning ahead, you can build a stronger financial foundation and stay on track for long-term success.
~Josh Hasting, Invested Wallet
The article outlines fifteen risky habits that can slowly wreck your finances if left unchecked. One of the root causes behind many issues is emotionally charged spending. Often, fear, greed, or impulse rather than logic lead to decisions that set you back rather than pushing you forward. A similar pitfall is failing to plan for things like taxes and unexpected accidents like broken bones or a crashed car. If you underpay taxes or skip insurance you could be faced with a nightmare later on. Many of the risky behaviors involve who you trust with money. Each year many people get scammed out of their savings by a clever phishing attack and even if you don’t fall for a scam, you might decide to invest in something risky just because your friend said it’s a good deal. While the article goes into depth about many more topics, many of them boil down to staying informed, thinking long term, and making decisions with a clear plan rather than emotion.