Making Sure You Are Financially on Track- Before and Through Retirement


A mistake that people often make is thinking they are on track for retirement, but never really crunching the numbers to know where they stand.

It is important to plan for retirement accordingly, meaning that your nest egg is large enough to make sustainable withdrawals throughout your lifetime.

To understand if you are on track for retirement, a good place to start is working with a fee-for service financial advisor to determine how much money you will need in retirement. This will be based on your future plans and the estimated time you will need that money to last.

From there, you can calculate your projected savings to see how much you are likely to have at retirement. Determine if there is a gap between the amount that you will need and the amount that you will likely have. That will show you if there is a deficit and if any adjustments should be made to your retirement plan so that you are not at risk of running out of money later in life.

As you move closer to retirement and look at your finances, a great goal to have is 10x your final year’s salary.

It is important for you to understand this number before retiring, so if you’re not quite there yet, you can turn some of your savings habits up a notch. In the years leading up to retirement, consider saving at least 15 to 20 percent of your current income into a 401(k) or Individual Retirement Account.


Once you are retired, you should consider updating estate planning documents including your will and power of attorney to make sure they fit your current needs. And if you don’t have these in place, by all means get them.

You likely do not need life insurance unless you have specific bequests or a large estate that may have exposure to federal estate taxes. If you have considerable assets, consider excess liability insurance.

A common question that comes up from those who have recently retired is, “What is the best way to withdraw from my retirement savings?”

It is important to develop a tax-efficient retirement income strategy and decide which accounts to take withdrawals from first. Ideally, you should not be withdrawing more than 4 percent of your overall invested assets in the first year of retirement.

When withdrawing money, set it up as automatic monthly distributions and stick to that budget. Resist the temptation to take out additional amounts during the year.

Tracy Burke, CFP®, ChFC®
Partner & Investment Consultant







The information contained herein should not be construed as personalized investment advice. Investing involves the potential for gains and the risk of loss. Conrad Siegel Investment Advisors, Inc. (“CSIA” or the “Firm”) is an SEC registered investment adviser with a principal place of business in the Commonwealth of Pennsylvania. CSIA may only transact business in those states in which it is noticed filed or qualifies for a corresponding exemption. For additional information about CSIA, please refer to the Firm’s disclosure documents, the current versions of which are available on the SEC’s Investment Adviser Public Disclosure website ( and may also be made available upon request.