Retirement Planning: The Smart Basics Every Professional Should Master

When it comes to retirement planning, most people fall into one of two camps: either they’ve set it and forgotten it—or they’re overwhelmed and unsure where to begin. The truth is, a sound retirement plan doesn’t require perfect timing or a degree in finance. It just requires a thoughtful approach, consistent action, and regular check-ins along the way.

Whether you're just starting out, approaching retirement, or somewhere in between, making the most of your retirement accounts and planning tools is key to building a future you can count on.

Here are a few foundational moves every professional should consider:

1. Fund to Any Match—Then Explore Other Strategic Tools

If your employer offers a retirement plan with matching contributions, your first priority should be to contribute enough to capture the full match. That’s essentially free money—and it’s one of the simplest, most effective ways to grow your retirement savings.

But after that? It’s time to think beyond the 401(k).

High earners, especially professionals and business owners, often find that traditional retirement account limits don’t allow them to save enough for the lifestyle they want in retirement. That’s where other tools come into play—like permanent life insurance, which can provide tax-advantaged accumulation, flexibility, and legacy benefits, or taxable brokerage accounts, which offer liquidity and long-term growth potential.

And don’t forget: you have until April 15 (Tax Day) to make contributions to IRAs and other eligible retirement accounts for the previous tax year. That gives you a little breathing room if you’re looking to make smart, last-minute moves before filing your taxes.

Retirement planning isn’t one-size-fits-all. The key is understanding how the pieces fit together—and when to reach beyond the standard options to build a strategy that actually matches your goals.

2. Consider a SIMPLE IRA or SEP IRA if You’re a Small Business Owner

If you own your practice or run a small business, traditional 401(k)s may be more than you need—or more than you want to manage. In that case, a SIMPLE IRA or SEP IRA can be a great solution.

• SIMPLE IRAs are easy to set up and administer, and allow employee contributions up to $16,000 in 2025 (plus a $3,500 catch-up for those 50+), with mandatory employer contributions.

• SEP IRAs allow for much higher contribution limits—up to 25% of compensation or $69,000 (whichever is less), but only the employer can contribute.

These accounts can help you build wealth while offering tax deductions and helping attract or retain staff—without the complexity of a full 401(k) plan.

3. Don’t Forget About Roth Accounts

While traditional retirement accounts reduce your taxable income today, Roth accounts (like a Roth IRA or Roth 401(k)) offer tax-free withdrawals in retirement. That flexibility can be incredibly valuable, especially in an uncertain tax environment.

Roth IRAs are income-limited, but Roth 401(k)s are not. And even if you make too much to contribute directly to a Roth IRA, strategies like the “backdoor Roth” can help you take advantage of this tax-free growth opportunity.

A good rule of thumb: diversify your future tax exposure. Having both pre-tax and Roth savings gives you more control when it’s time to draw income in retirement.

4. Align Your Investments with Your Timeline

It’s not just about how much you save—it’s also about how you invest those dollars. Retirement portfolios should be matched to your time horizon, risk tolerance, and income needs. In general, the younger you are, the more risk (and growth potential) you can afford. As retirement nears, shifting to more conservative and income-generating investments becomes more important.

We often meet people with portfolios that haven’t been reviewed in years. Markets change. So do your needs. A quick annual check-in can ensure your investments are still doing the job they’re supposed to.

5. Plan for Longevity—and the Risks That Come With It

We’re living longer—and while that’s good news, it comes with planning challenges. Outliving your money is a real risk, especially if you haven’t accounted for long-term care costs or an extended retirement period.

That’s where insurance can play an important role in a retirement plan:

• Disability insurance helps protect your income in the years you’re saving for retirement.

• Long-term care insurance can help offset the high cost of care later in life without draining your retirement savings.

• Life insurance can be used not just for income replacement, but also as a planning tool to leave a legacy, equalize an estate, or fund a trust.

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6. Work With a Professional Who Understands the Whole Picture

The best retirement plans consider more than just investments—they also account for taxes, insurance needs, estate planning, and your goals for the future. That's why a coordinated approach, working with a professional who understands how these areas intersect, can make a big difference.

Retirement planning isn’t just about picking funds or guessing when to take Social Security. It’s about creating a financial life that can support your independence, protect your family, and give you choices—whether you want to stop working at 60 or never fully retire at all.

Final Thought

If you’ve been putting off reviewing your retirement plan—or you’re not sure you have one—it’s never too late to get started. A few smart decisions now can pay dividends for decades to come.

Want help reviewing your retirement strategy or optimizing your current savings? Let’s talk. We help individuals and families align their investments, insurance, and long-term goals to create a plan that works—now and in the future.