Making Financial Resolutions: Know Where Your Retirement Stands

This article was originally published on Forbes.com on February 13, 2026.


Written by:
Chad Waddoups
Vice President of Wealth Management

Every January, many of us commit to ambitious goals—losing weight, learning a new skill or getting our finances in order. When it comes to financial resolutions, some people approach the new year with vague intentions rather than concrete plans. They hope things will work out and assume they’re on track.

As a financial advisor, I've learned that hope isn't a strategy. The most important financial resolution you can make this year isn't about saving more or spending less—it's about simply knowing where you stand and assessing if you are on the path to accomplish your financial goals.

What does it mean to know where you stand?
Financial clarity begins with understanding your objectives and the current state of your finances. Where do you want your money to take you? Where is all your money currently? Are you on track to accomplish your goals? For most people, one of their financial goals should be retirement, envisioning what that chapter will look like and calculating what it will cost to fund.

Look to the future with specific goals.
When setting future priorities, specificity matters. Generic goals like "I want to stop working" and "Visit my grandkids" don't translate to actionable plans. Where do your grandkids live? How many trips per year? How long will you stay? The more detailed your vision, the more accurately you can attach dollar amounts to it.

I recently worked with a couple in their 60s who saved nearly $900,000—an amount that seemed almost impossible to spend. But when we mapped out their travel plans for retirement, it became clear their funds wouldn't last nearly as long as they needed. Understanding this gap early allowed them to recalibrate their expectations and create a sustainable plan.

When should you start paying attention?
While the ideal time to start saving is as young as possible, the next critical window is roughly 10 years before you plan to retire. This isn't necessarily when you should save more—hopefully, your savings are already on track by then. Rather, this is when you need to get serious about alignment.

At 20, you have no idea what your retirement will look like. At 50, the picture becomes clearer. Now you can compare what you've accumulated with what you think you'll spend. Do you need to adjust your portfolio allocation? Does your lifestyle vision match your financial reality? These questions become urgent when retirement shifts from abstract to imminent.

Planning as a couple is nonnegotiable.
If you're married or in a committed partnership, financial planning must be a joint effort. I've seen couples who have been married for decades discover they have completely different visions for their finances. These disconnects create stress and can derail even well-funded plans.

Both partners need to align goals, and sometimes one needs to have a frank conversation with the other about spending or budgeting. Even if one person historically manages the finances, the other should know where to find critical information like life insurance policies, retirement accounts and contact information for advisors.

Creating a budget doesn't mean deprivation.
The word "budget" triggers anxiety for many people, conjuring images of obsessively tracking every dollar. But creating a budget doesn't mean you can't enjoy life—it means understanding your limits so you can spend confidently within them.

A budget can actually reduce financial stress. The anxiety comes from not knowing, and when you have a clear plan, stress and anxiety are often reduced.

Remember the power of automation.
One of the most effective budgeting principles is automation. You can set up automatic contributions to your 401(k) and IRA. If you're over 73, you can automate required minimum distributions (RMDs). Even bill payments can be automated.

This strategy works well because you usually don’t spend what you can’t see. When retirement contributions come directly out of your paycheck, you adjust quickly to the new normal. Many people find it helpful to keep only the money they will spend in their checking accounts and invest everything else.

Planning doesn't stop at retirement.
Ironically, financial planning becomes more critical after you retire. During your working years, you have flexibility. When I first started working an hourly job, if I needed new tires, I'd simply sign up for overtime and earn the extra money. But in retirement, you can't pull that lever. You're working with fixed resources, which means planning becomes essential.

Your retirement vision will also evolve. This is why I recommend revisiting your financial plan annually, especially after you retire. These reviews shouldn't create daily stress, but an annual check-in helps ensure your finances still align with your current reality.

Your resolution: Get specific.
This year, resolve to move beyond financial wishful thinking—be specific about what you want and calculate what it will cost. If you want to visit your grandchildren, nail down the frequency and location. If you plan to golf, determine how often and what membership or green fees are required.

Specificity is liberating. When you know exactly what your life will cost and can confirm you can afford it, you can spend without guilt and save without resentment. You're no longer operating on hope—you're executing a plan.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Consult your advisor prior to investing. The examples provided are hypothetical situations based on real-life examples.