“Standards” in Retirement Planning to Rise Above 

Written by: Anthony Striker, Senior Wealth Manager

As individuals and families move within three to five years of retirement, the conversation around money should evolve. At this stage, accumulation is no longer the primary goal. Instead, pre-retirees are looking for clarity, confidence, and a clear understanding of how their savings will support the life they’ve worked decades to build. 

In our experience, three common industry “standards” can create unnecessary challenges during this transition. While not inherently wrong, these approaches often fall short in delivering the predictability and intentional planning that retirees need. 

Inefficiency with “Safe” Money 

Many investors maintain cash or conservative assets for stability, but that doesn’t always mean those funds are being used effectively. It’s common to see large balances sitting in bank accounts well beyond what’s needed for liquidity. While this can feel comfortable, excess cash may quietly lose purchasing power to inflation over time. 

Another overlooked issue is bond fund duration. Traditional portfolio construction often leans on large, intermediate to long-term bond funds targeting moderate yields. However, these funds can be sensitive to interest rate changes, introducing volatility at a time when stability is often the priority. Shorter-term bond strategies may offer more predictability in certain environments. 

As retirement approaches, “safe” money should have a defined role—whether that’s covering near-term expenses, maintaining a healthy reserve, or providing flexibility for future opportunities. Every dollar should have a purpose. 

Investments Outsourced to Generic Models 

The increased use of third-party asset management has led to a rise in standardized portfolios built primarily around age and risk tolerance. While efficient, these models often produce portfolios that look nearly identical across different households. 

The issue is not the tools themselves, but how they are used. Retirement planning is about far more than investment returns. A portfolio should reflect a family’s goals, income needs, tax considerations, and personal decisions—not just fit into a predefined category. When investments are disconnected from the broader plan, opportunities for coordination and optimization are often missed. 

We believe the plan should drive the portfolio—not the other way around. 

Tax Drag from Non-Qualified Assets 

Taxable accounts such as individual, joint, or trust accounts are often invested in ways that generate ongoing tax liabilities. Mutual funds distributing capital gains, interest from bonds or savings accounts, and dividend income can all contribute to higher annual taxable income. 

Individually, these may seem manageable. Collectively, however, they can push households into higher tax brackets, limit opportunities for strategies like Roth conversions, and even lead to higher Medicare premiums in retirement. 

The objective is not to avoid taxes entirely, but to ensure that taxable income is intentional and aligned with the broader strategy. Thoughtful tax planning can help create flexibility and improve long-term outcomes. 

The Bottom Line 

Retirement planning is not about chasing returns—it’s about supporting a life well-lived. A strong plan should provide clarity, predictability, and confidence before and throughout retirement. 

By improving the efficiency of safe money, aligning investments with personal goals, and proactively managing taxes, retirees can create a plan that is both easier to understand and more effective over time. As retirement nears, success is less about how much you’ve accumulated and more about whether every part of your plan is working together toward the same purpose. 

At its best, this approach allows investments to become the steady, reliable foundation—so that retirement itself can be the exciting part.