Retirement planning is something that people should always think about, but the way that they think about it and its level of precision changes as they approach retirement. Earlier in life, you’re trying to figure out how much to save and put towards retirement. Within 5-10 years of desired retirement age, you should be thinking about the below checklist to prepare for a smooth transition to retirement: 1.

Currently, the average American predicts that they’ll be retiring at the age of 66 and 25% of them believe that they will need at least $1 million to retire early and live comfortably. Ok, fair enough. But, here’s the thing. It’s not always about the amount of money that you have when you retire. There is no perfect “retirement calculator”. Your comfort level through retirement depends on how well you plan for it.

Actually receiving an inheritance from someone who has passed away isn’t a taxable event, but how much tax you’ll pay when you take money out of that asset—for example by selling a stock or distributing money from a retirement account—depends on the asset itself. Here’s why. Got a step-up in basis? You’ll owe less tax if you sell. When an heir receives an asset from a decedent, the value of the property must be determined.

Understanding your investment time horizon is a key component of success in the investment world because it’s the period of time you expect to hold an investment strategy until you’d like the money back. Since the inception of the S&P 500, there have been zero rolling 20-year periods where (if you were invested solely in the S&P 500) you didn’t have more money than when you started.

There is no legal definition of “financial advisor” and that creates a big problem– when anyone can freely use the term, everyone inevitably will. Seriously, this is just like when everyone started putting “entrepreneur” in their bios and on their business cards.

Tips and challenges for transitioning into retirement  

A Guide for Saving and Investing for Short and Long-Term Goals

Download the PDF version of this checklist: Private Wealth Design Checklist