Does Planning End at Retirement?

Key Takeaways

• Plan for a 25-year retirement minimum (e.g., two people aged 65 should plan to age 90) with an overarching goal of not running out of money before running out of time.
• Structure your portfolio to generate after-tax, after-expense returns that exceed inflation—if inflation is 3% but your net returns are lower, your purchasing power will erode over 25+ years.
• About 70% of Americans will need skilled nursing care; budget for potential out-of-pocket costs (e.g., $500,000 for 5 years at $100,000/year) and ensure your savings plan accounts for this liability.
• Implement forward-looking tax planning to minimize erosion across your entire retirement—don't just react to taxes in the rearview mirror; look for opportunities to reduce your tax burden before year-end and smooth taxes over 25+ years.
• Review and update your retirement plan at least annually or every 18-24 months, and revisit legal documents (wills, trusts, powers of attorney) every 5-7 years since many states only honor agreements within that timeframe.