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RETIREMENT PLANNING  •  MILESTONE WEALTH ADVISORS

5 Financial Moves Every South Carolinian Should Make in the 5 Years Before Retirement

The window right before retirement may be the most important financial period of your life. Here’s how to make the most of it.

By David Grookett, CLU, ChFC & Zach Coggins, CRPC  |  Milestone Wealth Advisors — Columbia, SC

If retirement is five years away, you’re in what planners call the “pre-retirement zone” — arguably the most consequential stretch of your financial life. The decisions you make now will shape how comfortably you live for the next 20 to 30 years. The good news is that five years is enough time to make meaningful changes. The key is knowing where to focus.

At Milestone Wealth Advisors, we work with pre-retirees across the Columbia area every day. Here are five moves we recommend making before you turn in your badge.

1. Get Crystal Clear on Your Retirement Income Picture

Most people approaching retirement have a vague sense of what they’ve saved but no concrete income plan. You need to know exactly where your monthly paycheck will come from — Social Security, a pension, 401(k) or IRA distributions, investments, or part-time work — and whether it’s enough to cover your lifestyle. Once you map it out, you can identify gaps and fix them while you still have time.

2. Don’t Leave Social Security Timing to Chance

Social Security is likely one of the largest assets you own, yet most people claim without understanding the long-term impact. Claiming at 62 versus waiting until 70 can mean a difference of 40% or more in your monthly benefit — for life. The best strategy depends on your health, your spouse’s benefit, and your other income sources. A personalized analysis could add tens of thousands of dollars in lifetime income.

3. Build a Healthcare Bridge Before Medicare Kicks In

Medicare doesn’t begin until age 65. If you retire before then, healthcare coverage is one of your biggest unplanned costs — and one people often underestimate. Options include staying on a spouse’s employer plan, COBRA continuation coverage, or ACA marketplace plans where income-based subsidies may significantly reduce your premium. Military veterans and federal employees may also have access to TRICARE for Life, which can serve as an excellent bridge to Medicare and beyond — if you qualify, this is one of the most valuable benefits available to you. Once you hit 65, Medicare enrollment decisions around Parts A, B, D, and supplemental coverage come with their own deadlines and potential penalties — we help clients navigate all of it.

4. Stress-Test Your Portfolio for the Right Risk Level

The strategy that grew your wealth may not be the right one for protecting and distributing it. A major market downturn early in retirement — known as “sequence of returns risk” — can permanently damage a portfolio in ways that are difficult to recover from. Now is the time to review your asset allocation, build a cash cushion so you’re not forced to sell investments in a down market, and stress-test your plan against a range of market scenarios. This is one of the most valuable conversations you can have with a financial advisor before you retire.

5. Have a Tax Strategy, Not Just a Savings Strategy

The IRS has a claim on every dollar in your traditional 401(k) and IRA. How and when you withdraw will determine how much you actually keep. Consider Roth conversions during lower-income years before Social Security begins, coordinate withdrawals to stay in lower tax brackets, and plan ahead for Required Minimum Distributions starting at age 73. Working with an advisor who coordinates with your CPA can save a meaningful amount over a 20- or 30-year retirement.

Securities offered through Cetera Wealth Services, LLC (doing insurance business in CA as CFGAN Insurance Agency LLC), member FINRA/SIPC. Advisory Services offered through Cetera Investment Advisers LLC, a registered investment adviser. Cetera is under separate ownership from any other named entity.