Getting Your Finances In Order

Key Takeaways

• Create a segmented financial plan that identifies short-term goals (2-3 years) versus long-term goals, and match your money to when you'll actually need it rather than investing everything aggressively
• Build a cash reserve equal to one year of spending for retirement in liquid accounts, which allows you to avoid selling stocks during market downturns and invest more aggressively with remaining funds
• Take advantage of Secure Act changes: RMD age increased from 70.5 to 72, providing flexibility if you have substantial assets—but only delay if you genuinely don't need the distributions
• Avoid early retirement account withdrawals before age 59.5 even if tempting, as missing market recoveries (like the rebound since March 2020) significantly damages long-term retirement growth
• Update your legacy planning documents including healthcare directives and written wishes for asset distribution, treating this as essential financial protection rather than an optional task