Is Success Baked into Your Retirement Plan?

In Articles, Articles: Kansas City Office, Articles: Salt Lake City Office by Scott Dougan

If you enjoy cooking or baking, you know the satisfaction of preparing a cherished family recipe just right.

Maybe it’s your grandmother’s apple pie at Thanksgiving or the signature side dish that makes Christmas dinner complete. But imagine the disappointment of forgetting an ingredient or misjudging the baking time—what comes out of the oven might look familiar, but it won’t quite deliver the experience you were hoping for.

Planning for retirement is a lot like following a favorite recipe. There’s a proven process with key ingredients. Skipping a step or cutting a corner might not seem like a big deal at the time—but the result could leave you with an outcome that falls short of your expectations.

If you’re willing to take a moment to reflect on where you’ve been and where you’re headed in your financial journey, this is an ideal time to revisit your financial strategy. Are you including all the right ingredients in your retirement plan? Let’s take a closer look at some of the essentials.

Income: The Foundation of the Recipe

If you’re still working, consider how well you’re using your current income:

  • Are you paying down high-interest debt strategically while maximizing contributions to retirement accounts?
  • Are you taking full advantage of employer matching in your 401(k) or similar plan?

If you’re retired or getting close, the focus shifts:

  • Do you have a clear plan for turning your savings into sustainable income?
  • Have you accounted for inflation, taxes, and rising medical costs in your projections?
  • Will your income last as long as you do?

Risk and Fees: The Unseen Ingredients

Every good recipe has some hidden elements—seasonings or techniques that make all the difference. In retirement planning, those hidden factors are risk and fees.

  • Do you understand the level of risk in your investment portfolio? Many retirees hold bond funds believing they’re “safe,” but rising inflation can significantly reduce their value over time relative to rising prices. Stocks have historically been better hedges of inflation that other assets.
  • Are you aware of the fees you’re paying? Many investment products carry hidden costs that quietly eat away at your returns. Lowering these costs can have a major impact over time.

Taxes: The Ingredient That Can’t Be Ignored

Taxes are the silent partner in your financial future. For example, if you retire in a 24% marginal tax bracket, almost a quarter of your pre-tax savings belongs to Uncle Sam—unless you plan ahead.

  • Have you explored strategies to minimize taxes in retirement?
  • Are you taking advantage of Roth conversions, tax-efficient withdrawals, or charitable giving strategies that may help reduce your long-term tax burden?

Ignoring taxes in your retirement plan is like baking a pie and forgetting the sugar—technically complete, but far from enjoyable.

Health and Long-Term Care: The Emergency Ingredient

You may not think much about this ingredient until you need it—but when it’s missing, everything else can fall apart.

  • Have you considered how you’ll pay for a major health event or long-term care?
  • Do you know the current cost of a nursing home stay (about $90,000 a year and climbing)?
  • Have you planned for how such expenses could affect your spouse or family?

A strong retirement plan includes a strategy for handling unexpected healthcare needs without draining your savings.

A Recipe Worth Following

The reality is, most people don’t include all these ingredients in their retirement planning—especially those who go it alone or receive little personalized attention from their financial advisor. Critical pieces are often overlooked until it’s too late.

But it doesn’t have to be that way.

Just like a time-tested family recipe delivers results you can count on, a well-crafted retirement plan – built with the right elements – can help you create a retirement that’s secure, fulfilling, and built to last.

Is success baked into your retirement plan?

It’s time to gather the right ingredients, follow the steps, and bake something truly worth celebrating.