Kaitilin Newman heard a quote a while back that went something like this: “When is the best time to plant a tree? Ten years ago. But it’s not too late to plant it now.”

Newman, a wealth advisor with Piton Wealth in Kennewick, said the same notion holds when it comes to planning for retirement. While it’s ideal to start early, there are plenty of steps people can take as they near retirement age.

Other area financial experts agree.

Retirement planning can be an overwhelming prospect, but it’s important – and with it comes a more secure future and peace of mind. 

“It’s really about getting organized and making sure every dollar has a purpose,” said Kyle Nelson, a financial planner with The Retirement Solution in Kennewick. 

Like Newman, he advises people to jump on planning as soon as they can. 

So does Tyler Scott, a wealth advisor and financial planner with Cornerstone Wealth Strategies in Kennewick. “Time is your No. 1 commodity,” he said.

Newman, Nelson and Scott, along with Shasta Meyers, a financial advisor for Edward Jones in Richland, also have other advice for people approaching their retirement years, which often fall between the ages of 62 and 67. Read on for more of their top tips.

Setting goals and planning

Before you leave the workforce, it’s critical to know what kind of retirement you want to have.

Do you want to maintain your lifestyle? Cut back so you can retire earlier? Or something else?

Setting goals for your retirement is a critical step in the planning process, the experts said.

At Piton Wealth, “we have something called a Wheel of Wellness that looks at how you’re feeling in all arenas of your life, and we work backwards from those to get clients what they want out of retirement,” Newman said. They look at overall lifestyle goals, along with goals for things like travel, helping family members and so on. And they encourage clients to work with an attorney on estate planning.

Scott, from Cornerstone Wealth, agreed that goal setting is crucial.

“Most clients want to maintain the same lifestyle. But there are things to consider: do you want to travel? Do you want a second home? Is Washington going to be your primary residence? Outlining those goals and what you feel your retirement picture is going to look like – that’s kind of step one,” he said.

Meyers agreed. At Edward Jones, “we encourage people to make plans to stay active for a fulfilling retirement. We love having those conversations about what brings them excitement. What is their why? Is it volunteering, grandchildren, pursuing a hobby, working out, etc., etc.?” she said. 

Knowing and understanding the income sources you’ll have to reach those goals also is key, experts said. Those sources can be everything from 401(k)s and IRAs to investments, savings, Social Security, pensions and so on. Medical and long-term costs and strategies also are important factors.

With those goals envisioned and income sources understood, a plan can take shape.

“A lot of what we do in preparation for retirement is build out an income plan and start showing (clients), hey, here’s how we’re going to recreate that paycheck and supplement those goals,” Scott said, adding that, “there’s value in understanding your goals, customizing and starting to create that plan.”

Meyers agreed, saying, “we look at expenses, health care costs, liabilities and other spending, as well as income in retirement. That’s how we can determine if that person is saving or has saved enough or what adjustments might possibly need to be made.” 

Save, save, save

Another important factor in having a confident retirement is saving as much as possible, experts said.

“Save as much as you can and be diverse across your savings options,” Scott said. “It’s about understanding and knowing what you have, minimizing debts and saving.”

Nelson recommends that people still in the workforce seek a 401(k) match from their employers, if possible. And he urges young people to put money in a Roth IRA as they’re beginning their careers, noting, “you’ll be amazed, 20-30 years later, how your retirement has grown exponentially.”

But no matter where you are on the path to retirement, “don’t overthink it,” he said. “Ninety percent of personal finance is saving more than you spend. Save as much as you can while living your life, doing the things you need to do and taking care of yourself. That’s the main thing it all boils down to.”

Work with a financial advisor

One of the best things people can do to ensure they’re prepared for retirement is to work with a financial advisor, the experts said. “That’s my highest recommendation,” Newman said.

Scott agreed, saying, “every (client’s) situation is different and can plug in differently,” and advisors have the knowledge and insight to ensure they’re in the best position as they prepare to retire.

Nelson said his clients also have a variety of goals and approaches.

Some can’t wait to leave the workforce behind; others want to find post-retirement jobs.

“We build plans that are very conservative. We haven’t had anyone who’s had to go back to work (if they didn’t want to) because we organize them around a plan, grow it to age 100 so they know how much they can spend.” Nelson said. “...It’s really about having a strategy.”

Meyers said financial advisors can help work through all the “what-if” scenarios that come with planning for retirement, from when to file for Social Security to how to protect assets if health becomes a concern later into retirement. 

Newman said outcomes are better with professional guidance.

“We take a deep dive, take a look at what you’re currently doing and what things would look like if you do things differently. We see that when clients engage in financial planning and take recommendations, the outlook in retirement is much more positive,” she said.