Retirement Prep Checklist

Nov. 13, 2024

If you’re like many people in their 30s and 40s, thinking about retirement might be the last thing on your mind. During these prime working years, retirement may seem like a far-off luxury – or perhaps a source of anxiety if you know you’re not saving enough or haven’t begun planning.

But the truth is, now is a great time to think about your retirement goals and how to meet them. If you haven’t started preparing for retirement, don’t worry. It's not too late – and certainly not too early – to begin.

Let’s look at what you can do to start the process. We’ll cover what questions you need to ask yourself and what to do to reach your retirement goals.

Start the conversation

Like many things, simply getting started might be the most challenging obstacle. An easy way to begin is by asking yourself broad, open-ended questions about your retirement goals. You may choose to do this on your own or with an experienced financial advisor.

You can start with, “At what age do I want to retire?”

This answer is important. Once you have a target age, you know how many working years you have ahead – and how long you’ll receive a steady paycheck.

Now you can ask more specific questions about what you want your retirement lifestyle to be like:

Will you travel often?
Is being physically active a priority?
Will you volunteer in your community?
Do you hope to work part-time?

Your future living situation alone is a category worth several conversations:

What kind of housing do you hope to live in?
If you currently live in a house, will you want or need to downsize?
Do you hope to settle in another area? If so, does that area have a higher or lower cost of living?

These questions and their answers will indicate the lifestyle you’ll need to prepare for financially.

Consider what expenses may be associated with it:

Will you have debt?
Will there be costs associated with your housing?
Will you provide continued care for a family member?
Do you anticipate any health concerns that might affect your expenses?

Determine your risk tolerance

When considering these questions, it’s important to consider your current financial situation and your level of risk tolerance as you invest in your future.

Taking a risk assessment will help you determine what level of risk is suitable for you based on your personal objectives, cash flow, current portfolio, and your timeline to retirement.

Consider faith-based investments

Today, individuals can pursue opportunities that are socially responsible investments. You can ask yourself if faith-based investments are a priority for you or your family. Is it important to you that your investments align with your values?

Whatever decisions you choose to make, it’s important to remember that your choices today can affect what your life will be like in retirement.

Take stock — and full advantage — of your current assets

Now that you have a vision of your retirement lifestyle and the expenses that might come with it, you can assess where you currently stand relative to your goals.

Start by taking these four steps:

If you’re not already saving in a retirement account, consider starting soon. Now is the time to address any obstacles that may be holding you back, such as needing to satisfy debts or saving for your children’s education. When you are ready to begin preparing for retirement, take full advantage of plans offered by your employer, including employer matches. - Set goals or a timeline for increasing your contributions and maximizing your benefits.
Take notice of any retirement savings accounts you no longer contribute to. If you or your spouse have changed jobs, this may be relevant. Whether you leave funds in an old account or roll them into an existing plan, keep track of all of your accounts so you’re aware of all of your assets.
Take inventory of your bank accounts. Do you have savings spread out among multiple accounts? (The average American has 5.3)1 Work with a financial advisor to determine the pros and cons of consolidating savings into one account with a higher interest rate or a certificate of deposit with a guaranteed interest rate. If you’re married, periodically review your finances and take stock of accounts that are managed separately or jointly.
Revisit any investment accounts you may already have. Talk with your financial advisor about whether your investments align with your risk threshold and retirement goals. Your objectives and risk tolerance will likely change as you age and near retirement. Additionally, there are likely to be life circumstances and milestones that affect your financial situation.
Evaluate your interest in Faith-based options. You may also consider whether your investments align with your values. As a Catholic firm, Knights of Columbus Asset Advisors (“KOCAA”) adheres to the U.S. bishops’ guidelines for moral investing. That's how we provide "value with values”—helping clients grow their future with faith-based investing.

Consider what you might add to your retirement strategy

Once you’ve assessed where you currently stand in relation to your retirement goals, you can consider what you might add to your retirement strategy.

With plenty of financial options available, it can feel overwhelming. But you don’t have to make decisions about retirement on your own.

Speaking with a financial advisor might be the best next step in preparing for your retirement. A financial advisor might be able to reassure you that you’re on the right path or help make recommendations on how to correct the course. To connect with a financial advisor from Knights of Columbus Asset Advisors, visit here.

Knights of Columbus Asset Advisors have prepared this commentary for informational and educational purposes. Nothing contained herein should be construed as (i) investment advice or (ii) an offer to sell or solicitation of an offer to buy any security or (iii) a recommendation as to the advisability of investing in, purchasing or selling any security. Any opinions expressed herein reflect our judgment and are subject to change. Certain of the statements contained herein are statements of future expectations and other forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Actual results, performance or events may differ materially from those in such statements due to, without limitation, (1) general economic conditions, (2) performance of financial markets, (3) interest rate levels, (4) increasing levels of loan defaults, (5) changes in laws and regulations, and (6) changes in the policies of governments and/or regulatory authorities.

Knights of Columbus Asset Advisors (“KoCAA”) is an SEC registered investment adviser that maintains a principal place of business in the State of Connecticut. For information about KoCAA’s business operations, please consult the Firm’s Form ADV disclosure documents, the most recent versions of which are available on the SEC’s Investment Adviser Public Disclosure website at adviserinfo.sec.gov. KoCAA is a wholly owned subsidiary of Knights of Columbus, one of the world’s largest Catholic Lay Organizations. Investing involves risk and you may gain or lose money on your investments. KoCAA’s status as a Registered Investment Adviser does not imply a certain level of skill or training. For additional information visit KoCAA.org or write to kofcfunds@kofcassetadvisors.org. This information is intended for current or prospective investors in the U.S. only.

Source: How Many Bank Accounts Does the Average Person Have? 2024 | ConsumerAffairs®