March Money Moves: Essential Steps for Retirement Readiness

March is a great time to take stock of your retirement planning and make key financial moves that will set you up for long-term success. Whether you’re decades away from retirement or just a few years out, making strategic decisions now can improve your financial security. Here are the essential steps you should take this March to ensure your retirement readiness.

1. Assess Your Retirement Savings Progress

Take a moment to evaluate your current retirement savings and determine if you’re on track. Ask yourself:

• How much have I saved so far in my 401(k), IRA, or other retirement accounts?

• Am I contributing enough to maximize employer matches?

• Do I need to adjust my savings rate to meet my retirement goals?

  
  

Action Steps:

• Increase contributions if possible, especially if you are behind on savings.

• If you’re 50 or older, take advantage of catch-up contributions in your retirement accounts.

2. Review Your Investment Portfolio

Market conditions fluctuate, and your investment strategy should align with your risk tolerance and time horizon.

Action Steps:

• Rebalance your portfolio to maintain an appropriate mix of stocks, bonds, and other assets.

• Diversify investments to reduce risk.

• Consider adding income-generating assets such as dividend stocks or annuities to your portfolio.

3. Plan for Taxes in Retirement

Strategic tax planning can help you minimize taxes and maximize your savings.

Action Steps:

• Consider a Roth conversion if you anticipate being in a higher tax bracket in retirement.

• Withdraw funds strategically from taxable, tax-deferred, and tax-free accounts to minimize tax burdens.

• Make tax-efficient charitable contributions if you plan to donate.

4. Check Your Social Security Strategy

Social Security benefits play a crucial role in retirement income. Your claiming strategy can significantly impact your monthly benefit amount.

Action Steps:

• Review your Social Security statement to estimate your benefits.

• Decide if delaying benefits will result in a higher payout (delaying past full retirement age increases benefits).

• Coordinate your Social Security strategy with your spouse if applicable.

5. Reduce or Eliminate Debt

Debt can erode your retirement savings, so reducing it before retirement is a smart move.

Action Steps:

• Pay off high-interest debt, such as credit cards.

• Consider making extra payments on your mortgage if you plan to retire mortgage-free.

• Avoid taking on new debt as you approach retirement.

6. Review Your Healthcare and Insurance Needs

Medical expenses can be one of the biggest costs in retirement.

Action Steps:

• If you’re nearing 65, research Medicare options and enrollment deadlines.

• Consider a Health Savings Account (HSA) if you have a high-deductible health plan.

• Review your long-term care insurance options to protect against unexpected medical costs.

7. Update Your Estate Plan

Your estate plan should reflect your current wishes and financial situation.

Action Steps:

• Review and update your will and beneficiary designations.

• Establish or update a power of attorney for financial and healthcare decisions.

• Consider trusts or other estate planning tools to protect your assets and ensure smooth wealth transfer.

8. Consult a Financial Advisor

A professional can help refine your strategy and ensure you’re on the right path.

Action Steps:

• Schedule a meeting with a financial advisor to discuss your progress.

• Review any changes in tax laws that may affect your retirement planning.

• Get personalized recommendations to improve your financial strategy.