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Retirement Planning 101: The First Steps You Should Take 

Admin • December 1, 2023

Have you ever been up against a really tough challenge? Not the kind of challenge that’s overly complicated, physically demanding, or seemingly unattainable — the kind that demands a shift in your habits and maybe even the dismantling of mental barriers to progress to the next level.

Your mind may naturally wander to things like maintaining a healthy diet or sticking to a gym routine. However, if you sit with this question, your thoughts may gravitate towards other unquestionably essential things, such as planning for retirement.

Think about it: opening up a retirement account or setting up automatic contributions, the very basics of preparing for retirement, isn’t all that challenging. Yet, many of us find excuses to put it off for another day.

“I’ll start saving when I make more money.”

“Who knows what tomorrow holds? I’m living life on my terms now, and I’ll deal with retirement later.”

“It all feels overwhelming, and I have no clue where to start.”

While those thoughts may hold some validity, they often become excuses to procrastinate on planning for something that will inevitably come. Even if we delay retirement or opt to work part-time during retirement, the fact remains that a time will come when we are no longer physically or mentally fit for employment, and the time to prepare for that day is now .

Steps in Retirement Planning

So, where do you start if the enormity of it all feels too much to handle? Fortunately, taking small steps is not only allowed but encouraged. And if you’re asking, “What are the first steps of retirement planning?” —we’ve got you covered with four steps you can start taking today! 

1. Define What Retirement Means to You

If you’re in the early stages of your career, it’s natural for your retirement goals to shift many times before you retire. However, even if you don’t have all the answers, it’s still important to think about what retirement means to you right now.

For some, retirement might mean achieving a work-optional lifestyle, meaning they have the flexibility to retire by a certain age, even if they intend to continue working because they genuinely love their work. Others may aim for a more definitive retirement age, at which point they focus on a passion project or volunteering their time.

Here are a few questions to help you start thinking about what retirement means to you:

  • What’s your ideal retirement age? ( Hint: It doesn’t have to be the traditional age of 65. You’re allowed to dream while still staying grounded in reality.)
  • Where do you want to live? Do you want to stay put, move to a tax-friendly state, or move abroad for a lower cost of living?
  • Do you have a passion project in mind, like launching a non-profit or turning your hobby into a business that you can hand down to the next generations?

Remember, it’s okay if your goals evolve with you. It’s better to adjust your goals as your circumstances and dreams change rather than do nothing because you have no vision for the future.

2. Estimate Your Anticipated Expenses

This step in retirement planning can feel hazy, given the many variables that can change between now and retirement. However, a practical starting point is assessing your current spending.

Make a list of your current expenses and determine which ones you’ll realistically maintain in retirement and which you won’t, or which might increase or decrease in retirement. Remember to factor in inflation, medical expenses, and some things you aspire to do in retirement.

Here are some questions to inspire your imagination about what you might want and need to budget for in retirement:

  • What are some things you want to experience in retirement? For example, do you plan to travel extensively while you’re still in good health?
  • Is there someone or something you’d like to financially support, such as an organization close to your heart or your grandchildren?
  • Is there anyone who would be able and willing to take you in if there comes a time when living independently becomes challenging, or do you envision a scenario where you might require care in a nursing home?

Depending on where you are in life right now, it might be too soon to have a solid answer to some of these questions. However, they are meant to get you thinking about how you may want and need to manage your finances during retirement. 

3. Assess Your Current Financial Situation

This step may be challenging because we’re shifting the focus from dreaming about what’s possible to facing reality. However hard it may be, you need to clearly understand where you are today to plan for where you want to go.

To gauge your retirement readiness, you can start with these steps:

  • List all your retirement accounts, including their respective balances and ongoing contributions.  

This list should include everything from employer-sponsored plans like a 401(k), self-employed retirement plans such as a Solo 401(k) or SEP IRA, personal retirement accounts like IRAs, and even non-retirement accounts that you’ve earmarked for retirement, like investment or savings accounts.

  • Review your investment portfolio to ensure it aligns with your age, risk tolerance, and goals. 

Some mistakenly believe they’ve covered all the bases by simply contributing to a retirement account, but there’s more to it. While retirement accounts offer tax advantages, if your retirement funds are parked in cash, your returns won’t be much different than leaving your cash in a savings account earning a meager 0.3%.

A more aggressive approach to investing is typically suitable when you’re younger because you have more time to take risks for greater rewards and recover from market setbacks. As you approach retirement age, a conservative approach may be better to preserve your wealth. 

Once you know where you stand, you can take the proper steps to move the needle in the right direction.

4. Determine What Changes Are Needed and Take Action

This step involves some number crunching to determine if you’re on the right track and, if not, how to bridge the gap. While a more in-depth approach may be required, there are many online calculators that allow you to plug in some basic data to get a general idea of your retirement readiness.

In addition to solving for your required contributions and rate of return to meet your goals, you may need to make other changes. For instance, you may need to set up or enroll in a retirement plan.

If you’re employed, start by reviewing your benefits to see what option(s) are available to you; if you’re self-employed, start comparing the various plans available to business owners to determine which best meets your business needs.

Once you’re clear on what needs to be done and you have the means to do it (even if it involves trimming some of your discretionary spending), it’s time to take action. 

Enroll in your employer’s 401(k) plan. Boost your contributions to secure the full employer match. Automate savings to your investment account. There’s no universal guide to retirement, so do what’s necessary and attainable for your circumstances.

Your Retirement Life by Design: Piecing It All Together

While we encourage you to work through these exercises individually, merging all the steps in retirement planning into a comprehensive and well-defined strategy can be challenging.  

The good news is, much like there are specialists for handling your taxes or repairing things around your home, there are retirement planning specialists , too. Retirement planning specialists like the team at Five Pine Wealth can help you develop a clear roadmap with steps in retirement planning to help you achieve your vision.

If the idea of planning for retirement feels daunting, we’d love to chat with you to see if we’re a good fit. Give us a call at 877.333.1015 or send us an email at info@fivepinewealth.com .

At this time, we’re welcoming clients in Spokane and across the nation through our virtual retirement planning services .  Remember, whether you do this independently or opt to team up with a trusted advisor , taking even small steps is far more valuable than taking no action at all.

The Best Long-Term Investment Strategy? Stay Invested, Stay Calm

June 20, 2025
When markets are calm, investing can feel easy. You contribute regularly, watch your portfolio grow, and start picturing that future vacation home or early retirement. But when markets get volatile, everything changes. Suddenly, headlines are full of dire warnings. Account balances fluctuate. And the urge to do something can feel overwhelming. At Five Pine Wealth Management , we understand how emotional investing can become during periods of market uncertainty. One of the most important things we do as fiduciary financial planners is to help our clients stay grounded when the market gets choppy. Let’s walk you through how we approach investment risk management and why having a clear, disciplined philosophy matters most when volatility strikes. Our Philosophy: Think Long-Term, Not Next Week When markets are moving fast, it is easy to think that the “best long-term investment strategy” must involve taking action to avoid losses or chase gains. The reality is usually the opposite. Reacting to market noise can often do more harm than good. In fact, one of the greatest risks to long-term returns is making emotional decisions in response to short-term events. We coach our clients to stay focused on their long-term financial plans and goals. Volatility is a feature of markets, not a flaw. By designing portfolios with realistic expectations for ups and downs, we help clients stay invested through all market environments. Here is what this looks like in practice: We use broadly diversified portfolios built around low-cost ETFs. We focus on asset allocation aligned with your time horizon, goals, and risk tolerance. We do not chase trends or attempt to time the market. We regularly review and rebalance portfolios based on your financial plan, not headlines. In short, your portfolio is designed to ride out volatility, not avoid it entirely. Fiduciary Financial Planning: Advice in Your Best Interest There is a great deal of noise in the financial world, particularly during turbulent market conditions. One of the most significant ways we help cut through it is by being fiduciary financial planners. That means we are legally and ethically obligated to act in your best interest at all times. We are also fee-only advisors. We do not receive commissions for recommending one investment over another. Our primary agenda is to help you reach your goals. During market volatility, this matters more than ever. Too many investors fall prey to sales pitches disguised as “solutions” to market risk. We focus on education and long-term planning rather than quick fixes. Being a fiduciary allows us to focus on what serves you best: Keeping you aligned with your personal goals and values Helping you tune out market noise and media hype Offering sound, research-backed guidance without conflicts of interest Your Coach Through Emotional Market Cycles One of our most important roles as financial planners is helping clients manage the psychological side of investing. It is one thing to know, intellectually, that markets will recover over time. It is another thing to watch your portfolio drop 15% and not feel anxious. Market downturns create powerful emotions. Fear. Doubt. Sometimes, even panic. As humans, our instinct is to take action to relieve those feelings, even when the logical course is to stay invested. That is where we come in. We help coach clients through these moments so they can avoid costly mistakes like: Selling during a downturn and locking in losses Chasing the next hot trend during a rebound Over-concentration in “safe” assets out of fear We remind clients that volatility is a normal part of the market. Markets have experienced recessions, wars, pandemics, and political turmoil before. They will again. Over time, markets have historically rewarded patient investors who stayed the course. When you work with us, you gain a trusted partner who is here to talk through your concerns, offer perspective, and help you make decisions that serve your long-term goals. Why Staying the Course Actually Works It may seem counterintuitive, but reducing activity during market volatility often yields better outcomes. Consider this: From 1999 through 2018, if an investor missed just the 10 best days in the S&P 500, their overall return would have been cut nearly in half . Many of the best market days happen very close to the worst ones. Trying to time the market is a challenging task, even for seasoned professionals. By maintaining a disciplined investment approach and staying fully invested, you ensure that you are there for both the recoveries and the long-term growth that markets provide. Our role is to help you build a portfolio designed for precisely this kind of staying power. We structure your investment mix to help you weather market cycles without having to guess what will happen next. Educating Clients About Normal Market Cycles Another key aspect of fiduciary financial planning is helping clients understand what is “normal” in the market. Volatility is not a sign that something is broken. It is a natural part of how markets function. In fact, without volatility, markets would not offer the returns that make long-term investing so powerful. We work with clients to help them see: Why some years will be down, but others will be very strong Why trying to avoid all losses is neither realistic nor necessary How staying invested through cycles often leads to far better outcomes than jumping in and out of the market Perspective is everything . The more you understand market behavior, the less likely you are to make emotional decisions during downturns. Different Stages, Same Principles Our approach also adapts to the varying needs of clients at different stages of their financial journey. For clients in their 40s to 60s: We may focus on prudently preserving and growing wealth. We help manage sequence-of-returns risk as you approach retirement. We may emphasize income planning and portfolio sustainability. We ensure that your investment mix aligns with your evolving goals and risk tolerance. For clients in their 30s: We provide education about typical market cycles (especially if this is their first experience with volatility). We coach clients to take advantage of their longer time horizons. We help younger investors see downturns as buying opportunities, not threats. In all cases, we are committed to helping clients invest with confidence, regardless of the headlines. Ready to Build a More Resilient Investment Strategy? Market volatility will always be part of investing, but it doesn't have to derail your financial goals. As your trusted financial advisor Coeur d'Alene team, we're here to help you navigate market uncertainty with confidence through our comprehensive financial planning approach. Contact Five Pine Wealth Management today to discuss how our investment philosophy and comprehensive financial planning approach can help you navigate market uncertainty with confidence. To see how we can help you support your financial goals, send us an email or call us at 877.333.1015.  Whether you're looking to preserve the wealth you've already accumulated or build a foundation for long-term growth, our team has the experience and commitment to help you stay focused on what matters most: achieving your financial goals.

From Full House to Financial Freedom: Smart Money Moves for Empty Nesters

May 23, 2025
The day your last child leaves home hits differently. It’s not just about the quiet hallways or fewer groceries in the cart. It’s the moment you realize that the life you’ve known for 20+ years is evolving into something new. For many, that change is deeply emotional. But it’s also a golden opportunity. At Five Pine Wealth Management, we work with parents who are entering this new season of life. Maybe you’re celebrating. Perhaps you’re feeling uncertain. Likely, you’re feeling a mix of both. This new chapter comes with financial freedom and decisions to match wherever you land. Let’s explore the smart financial moves you can make as empty nesters. Empty Nesters: A New Financial Season Meet Rob and Dana. After 25 years of raising three kids, their youngest finally left for college last fall. Their house, once bustling with backpacks, soccer cleats, and half-eaten cereal bowls, suddenly felt oversized and eerily quiet. They weren’t used to grocery bills being cut in half or weekends without games and activities. But what really surprised them? Just how much less money was going out each month. They came to us with a familiar feeling: a mix of excitement and uncertainty. "We think we're in a good place," Dana said. "But are we doing what we should be doing?" This is where a financial check-in becomes vital. With fewer day-to-day expenses and more flexibility, this is a time to refocus your finances. Here’s where to focus: Revisit your monthly budget. Your spending needs have probably changed. Without dependents at home, you may find new flexibility. Redirect those dollars toward long-term goals. Refresh your financial goals. That dream trip to Italy or the kitchen renovation you’ve put off? Let’s pencil it in, but also ensure your retirement accounts are getting the love they need. Update your estate plan. Now that the kids are young adults, your wills, healthcare directives, and beneficiaries may need adjusting. Freedom looks different for everyone, but for many, it starts with clarity. Pre-Retirement Planning: Your Next Big Financial Milestone For most empty nesters, retirement is no longer a distant concept—it’s getting real. Pre-retirement planning becomes a critical focus, especially in your late 40s to mid-60s. This is often the highest-earning period of your life and the sweet spot for pre-retirement planning. Here’s what we help our clients prioritize: Maximizing retirement contributions : As an empty nester, your cash flow could increase by 12% or more . Now’s the time to supercharge your 401(k), IRA, or other investment accounts with that extra cash. If you’re 50 or older, take advantage of catch-up contributions. Evaluating your risk exposure : Is your portfolio still aligned with your risk tolerance and timeline? Consider your tax strategy: With fewer deductions (like kids at home) and possibly a high-earning year, you may want to explore Roth conversions, charitable giving, or other tax-aware strategies. Running retirement projections : We help clients answer big-picture questions like: When can I retire? Will I have enough? What lifestyle can I realistically support? These aren’t always easy questions, but they’re essential. Planning for healthcare : Don’t wait until 65 to think about Medicare. Explore long-term care insurance and out-of-pocket expectations now. Rob and Dana sat down with us to run a retirement analysis. With only 8 years until Rob planned to retire, we helped them rebalance their portfolio to reduce risk, evaluate their pension and Social Security options, and make a plan to pay off their mortgage early. The result? They now have a clear retirement date and peace of mind. Should I Downsize My Home? One of the most common questions we get from empty nesters is, “Should I downsize my home?” It’s not just a financial question. It’s an emotional one, too. That house holds birthday parties, graduation photos on the stairs, and a dent in the drywall from a wild game of indoor tag. But it may also hold higher property taxes, more space than you use, and maintenance costs that don’t serve your current lifestyle. When deciding whether to downsize, we walk clients through: Total cost of ownership : What are you paying for the space? Emotional readiness : Are you ready to let go of the home? What would moving free up? : Cash for retirement? A move to your dream location? Family needs : Will your kids (or grandkids) be visiting regularly? Would a smaller home still support that? Downsizing doesn’t always mean moving into a tiny condo. Sometimes it means relocating to a one-level home with less yard or trading square footage for a better lifestyle. For Rob and Dana, downsizing meant moving to a townhome closer to their daughter and walkable to their favorite coffee shop, all while cutting their housing costs by nearly 35%. Give Yourself Permission to Dream Again One of our favorite things about working with empty nesters is helping them rediscover what they want. For years, life revolved around the kids. College tours. Dance recitals. Saturday mornings spent on the soccer sidelines. You were investing in their future. Now, it’s time to invest in yours. That might mean: Launching the business you put on hold Traveling during off-peak seasons (because you can!) Picking up a new hobby or volunteering more Creating a legacy through charitable giving or a family foundation Whatever it is, we want to help you align your money with your vision. Ready to Rethink the Next Chapter? This stage of life is full of opportunities, but it can also raise big questions. The good news is you don’t have to figure it all out on your own. Whether you're considering downsizing, exploring early retirement, or just want to know you’re on the right path, Five Pine Wealth Management is here to help you plan wisely, invest intentionally, and live fully.  Take advantage of this pivotal financial moment. Call (877.333.1015) or email us today to schedule your empty nester strategy session. The empty nest doesn't have to feel empty. It can be the launch pad for your next chapter of financial success.