One of the biggest trends that future retirees need to keep in mind is that medical expenses will almost always cost more than you think. As medtech continues to advance, it's now easier than ever to increase our longevity, but this greater and longer-term access to healthcare can make for a glaring omission in retirement planning. Failing to budget for more substantial medical expenses and the possibility of the need for more long-term care that Medicare is incapable of covering can be dangerous. You should budget for all eventualities, as this can quickly eat into your savings and impact your comfort as a retiree. The taxation outlook is also changing rapidly, and key individual provisions of the Tax Cuts and Jobs Act (TCJA) of 2017 will expire at the end of the year. If this isn't extended, you may find yourself paying higher marginal income tax rates, which can affect the value of pre-tax retirement contributions and the tax implications of withdrawing money throughout your retirement. The disruption to US markets and the economy following tariff uncertainty earlier this year and a clouded outlook for domestic monetary policy serve as a reminder that it can be challenging to plan for the long term. With this in mind, you should always look to save more than you believe you need.
Response (Michael J. Gauthier, Founder & CEO, Strategic Income Group) For anyone planning to retire in 2026, the single most important move right now is to give every dollar a clear purpose. At Strategic Income Group, we teach clients to divide retirement assets into purpose-based "buckets" — starting with Income and Income+. The Income bucket is designed to cover living expenses for the next 2-4 years. It typically holds high-quality, short-term fixed income and cash equivalents. This money isn't meant to chase returns — it's meant to provide peace of mind. The Income+ bucket extends that runway to 4-7 years with slightly higher yielding bonds, structured notes, and other income-oriented vehicles that can deliver steady yield while protecting principal. Together, these two buckets ensure that money meant to be spent in the next seven years isn't exposed to long-term market volatility — freeing clients to let the rest of their portfolio (Growth and Impact buckets) ride through market cycles. The biggest regret I see among near-retirees is failing to separate short-term spending needs from long-term investments. When markets dip early in retirement and withdrawals come from volatile assets, it can permanently damage a lifetime plan. In today's environment of shifting interest rates and longer retirements, success comes from structure and discipline. A well-defined Income and Income+ strategy gives every dollar a job to do — whether that job is to fund today's lifestyle, tomorrow's opportunities, or the legacy you'll leave behind.
The sooner it gets down to the business of maximizing retirement account contributions, the better. Regardless of whether it is an IRA, 401(k), or any other plan, increasing savings within the next few years will guarantee a more comfortable retirement. Check your estate planning documents. Most people ignore reviewing the wills or trust plans, and this may cause problems in the future. It is better to make sure all is set before the time runs out than to be stressed and ultimately have to face a court case in the future. Regarding ordinary regrets, most individuals do not estimate the cost of healthcare during their retirement. One must be prepared to face increasing medical costs and long-term care insurance since they can consume a lot of savings.
Image-Guided Surgeon (IR) • Founder, GigHz • Creator of RadReport AI, Repit.org & Guide.MD • Med-Tech Consulting & Device Development at GigHz
Answered 5 months ago
If you're planning to retire in 2026, the most important move right now is to shift from growth to preservation—not in fear, but in structure. Once your income stops flowing, your investments can't recover from volatility the same way they could during your earning years. You want predictable cash flow and lower drawdown risk, not market thrills. First, tighten your liquidity plan. Build at least 12-18 months of living expenses in cash or short-term Treasuries. That buffer lets you avoid selling investments during downturns—a mistake that devastates retirees more than almost anything else. Second, rebalance for stability. After a decade of high-return markets, many portfolios are still overweight equities. It's time to stress-test your mix for a 15-20% correction scenario. Reducing volatility through bonds, CDs, and dividend-paying funds helps smooth income and preserve principal. Common omissions I see: Ignoring the tax sequence of withdrawals. Roth conversions between retirement and age 73 (before RMDs begin) can dramatically lower lifetime taxes. Failing to review Medicare and healthcare costs, which can easily exceed $400K over retirement for a couple. Underestimating inflation and longevity. People live longer now, and healthcare inflates faster than CPI. The landscape has changed. Interest rates are higher, which helps savers but complicates bond values. Market returns look less predictable, and new SECURE Act 2.0 rules alter RMD timing and catch-up contributions. You can't just follow the "4% rule" anymore—you need a personalized withdrawal strategy based on tax brackets and sequence risk. Before retiring, I'd advise locking in: A guaranteed income floor (Social Security, pension, annuity, or bond ladder). Healthcare coverage, including Medigap or ACA bridge options. A plan for tax-efficient drawdown (Roth, IRA, taxable in the right order). And finally, test your assumptions: run a scenario where inflation stays at 3-4% and markets are flat for two years. If your plan still works, you're ready. Retirement isn't about maximizing return anymore—it's about minimizing regret. —Pouyan Golshani, MD | Interventional Radiologist & Founder, GigHz and Guide.MD | https://gighz.com
Honestly I'd tell someone retiring next year to get painfully specific with cash flow way earlier than they think. Most people assume "I'll adjust when I get there," but that's where money leaks start. I learned this in my own business years ago when we didn't map exact supplier spend timing and it cost us almost 19k in avoidable fees. For retirement, it's the same discipline. Get 12 months of spending modeled clean before day one. Lock Med/Medicare supplemental strategy early. And have 6 to 12 months of pure liquid cash set aside before you touch tax deferred accounts. Think of that buffer the same way I think about being a China office partner running sourcing with 5 percent commission and free inspections. Stability gives you negotiation power and emotional clarity. The mistake is people enter retirement in reaction mode.