I’m a Retirement Planner: 1 Money Move I Recommend to My High-Net Worth Clients That You Can Use, Too
Written by
Emily Fowler
Edited by
Zuri Anderson
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What sets high-net-worth individuals apart when planning for retirement? It’s not fancy investments or exclusive strategies — it’s the way they rely on detailed, comprehensive financial plans.
According to Patrick Marcinko, certified financial planner (CFP) at Bogart Wealth, this approach isn’t just for the wealthy.
“The biggest piece of advice for retirees is to create a financial plan before retiring,” he explained. “A good financial plan should provide peace of mind that you are on track for a successful retirement, financially.”
While wealthy retirees often have multiple income streams and larger portfolios, the principles behind their success are accessible to anyone. Here’s how this strategy works — and why it’s worth adopting.
Mapping Out Income and Expenses
For retirees, income often comes from various sources–including Social Security, pensions, investment accounts and rental properties. Each source operates differently. Social Security, for example, might not kick in for years, and investment accounts may be subject to market fluctuations. Knowing the timing and tax implications of each source is key.
It’s easy to underestimate lifestyle costs in retirement. Whether it’s traveling, picking up new hobbies or helping grandchildren with education expenses, things can add up quickly. By categorizing expenses into fixed (housing, insurance, utilities) and discretionary (entertainment, travel), retirees will find it easy to budget. Seeing the big picture makes it easier to adjust spending if necessary.
Preparing for Lifestyle Adjustments
Financial planning doesn’t stop at budgeting. Marcinko highlights another challenge: Filling newfound free time.
“A big adjustment at the beginning of retirement is the amount of free time that is available,” he said.
Wealthy retirees often travel extensively, volunteer with organizations or take up expensive hobbies. While not every retiree has the same resources, the concept remains the same: A fulfilling retirement requires more than money. It needs purpose and structure.
Think about what will make the next phase of life meaningful. Whether it’s hobbies, family time or giving back to the community, start planning now and budget for it.
Prioritizing Contributions Before Retirement
Creating a plan doesn’t just mean managing finances after retirement.
High-net-worth individuals often focus on maximizing contributions during their working years. While it might seem like they’re simply working with larger sums, the principles are universal.
Max out 401(k)s and IRAs, especially if there’s an employer match. Catch-up contributions for those over 50 are a no-brainer. Tax-advantaged accounts like HSAs are also powerful tools, letting people saving more now for less financial stress in the future.
Factoring in Unexpected Costs
Even the best financial plan should account for the unexpected. Rising healthcare costs and market volatility can derail anyone’s retirement budget, and it’s something that Americans are worrying about both before and during retirement.
According to the 2024 Retirement Confidence Survey from the Employee Benefit Research Institute (EBRI) and Greenwald Research, inflation and the high cost of living are the leading reasons why 31% of workers and 40% of retirees don’t feel confident about their retirement.
For those with significant assets, tools like estate planning or long-term care insurance come into play. While these strategies may not be necessary for everyone, the principle — preparing for the unexpected — is universal.
Why a Plan Matters
The reason high-net-worth clients thrive in retirement isn’t just their wealth — it’s their preparation.
“A good financial plan shows that you’re on track for a successful retirement. It’s the peace of mind that comes from knowing the numbers work,” said Marcinko.
This approach isn’t limited to those with deep pockets. Anyone can adopt the strategies that wealthy retirees use: map out income, budget for expenses, plan for free time and prepare for surprises.
It’s not about having a massive fortune. It’s about making the most of what you have — and that’s something everyone can do.
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