Key Retirement Planning Milestones for Cardinal Health Employees
On July 4th, we celebrate freedom—including the ability to build financial lives that support our personal independence and help us live the lives we envision. Whether you're just starting your career or approaching retirement, reaching key financial milestones can lay the foundation for long-term confidence and security. Following these steps while employed at Cardinal will help you stay on the path toward your own financial independence.
Early Career: Laying the Foundation (20s – 30s)
It’s not always easy, but starting your retirement savings in your 20s gives you more flexibility and freedom down the road. Thanks to the power of compounding, each dollar you invest early could grow to more than $20 by retirement!!
Enroll in Your 401(k) ASAP – Cardinal Health offers a 401(k) plan with employer matching, so contributing early ensures you’re not leaving free money on the table. At an absolute minimum, contribute at least enough to get the full match; but ideally everyone should be contributing 10% or more.
Start an HSA If You’re Eligible – If you're enrolled in the Cardinal high-deductible health plan (HDHP), an HSA (Health Savings Account) offers triple tax advantages and can act as a long-term investment tool for future healthcare expenses.
Establish an Emergency Fund – Best practices suggest aiming for 3–6 months’ worth of expenses to cover unexpected financial needs without dipping into retirement savings.
Tackle Debt Strategically – Pay off high-interest debts while balancing retirement savings to avoid setbacks later. Savings on these high-interest debts can be then snowballed into other debts to expedite payoff and/or increase other savings.
Potentially Start Saving for College – If you have children, it's worth deciding whether you plan to help with their potential college expenses. Failure to do so may result in a surprise later that materially pushes back your target retirement age. The most common way to save is through a 529 plan—especially now that a portion of unused funds can be rolled into a Roth IRA under new rules. But it’s not the only route. Depending on your goals and flexibility, other strategies—like Roth IRAs, taxable investment accounts, or even cash flow planning—may deserve a closer look.
Mid-Career: Acceleration & Wealth Building (40s – 50s)
This phase of life can feel like a balancing act—demanding leadership roles, raising children, caring for aging parents, and managing a household. For many Cardinal employees in their 40s and 50s, it's a high-pressure period with limited bandwidth. That’s why carving out time to build a thoughtful financial strategy—and automating key decisions—can be a game-changer. It creates mental space now and greater flexibility for the future.
Increase Retirement Contributions – As you enter your peak earning years, aim to max out your Cardinal 401(k) contributions—and take advantage of catch-up contributions once you turn 50. If that feels overwhelming, consider a gradual approach. Many of our clients increase their contributions annually during the merit cycle. For example, if you receive a 4% raise, try allocating half of it to your 401(k). Your take-home pay still rises, and the extra 2% invested will make a meaningful difference over time—without feeling like a sacrifice! 😊
Diversify Investments – Ensure your portfolio includes stocks, bonds, and cash to diversify your investments. If you’re unsure of how to do this with induvial funds, the target date funds offered in the Cardinal 401k might be a good choice.
Plan for Healthcare Costs – Increase your Cardinal HSA contributions to build the maximum benefit. If you’re not there yet, consider increasing your contribution rate during the merit cycle as mentioned above.
Assess Your Retirement Goals – Are you on track? Use several different retirement calculators or meet with a qualified financial advisor to evaluate your savings progress towards your goals.
Assess College Savings if Necessary – If you have children and plan to help cover their college costs, now’s the time to assess your strategy. How much will come from savings, and from which accounts? How much can you cash flow from your current income? These choices matter. Without a clear plan, education expenses can unintentionally set your retirement timeline back by several years—or more.
Pre-Retirement: Fine-Tuning Your Strategy (55+)
You’ve got a great foundation laid and now it’s time to really dial in that retirement strategy. There are lots of potential steps here, so you’ll want to start down this path well before your target retirement date.
Max Out Retirement Accounts – If possible, ensure you’re maxing the Cardinal 401k contribution including the age 50 catch up.
Create a Withdrawal Strategy – Know when and how to withdraw from 401(k)s, IRAs, Social Security, LTI, and HSAs to optimize tax efficiency. Research strategies how to maximize your tax efficiency upon withdraw to avoid leaving “Uncle Sam a tip”. This is also the time to consider moving your investments to a “pre-retirement” posture to help avoid a major investment loss as you approach retirement distributions.
Plan Your Social Security Strategy – Delaying Social Security benefits until age 70 can substantially boost your monthly payout—and in many cases, it makes financial sense to wait. However, timing isn't one-size-fits-all. For some, starting benefits earlier may be the more prudent move, depending on health, income needs, and broader financial goals. The key is to evaluate your situation holistically before making this long-term decision.
Review Medicare & Healthcare Planning – Research Medicare options and prepare for medical expenses. This is particularly important if you’re planning to retire before age 65 when Medicare becomes available. Private insurance can be a viable route, but an Affordable Care Act plan might be the best route depending on your retirement income sources.
Contribute to the Deferred Comp Plan – If you are eligible, the deferred comp plan can enable highly compensated Cardinal employees the opportunity to increase their pre-tax savings when they need it the most.
Assess Final Debt Elimination Strategies - Many of our clients aim to enter retirement either debt-free or with minimal obligations, helping to lower their required income in retirement. Take stock of any remaining debts and assess which ones make sense to pay off before stepping away from Cardinal. Then, create a targeted payoff strategy to eliminate those balances ahead of your planned retirement date. It’s a proactive move that can bring greater financial freedom and peace of mind in your next chapter.
Complete Final Projects – If you’re a homeowner, now may be the ideal time to tackle any larger home improvement projects you’ve been putting off. While you might have more time post-retirement, you’ll likely have less financial flexibility. By completing these projects now, any scope changes or cost overruns might “only” mean working a few extra months—not dipping deeper into your retirement savings than is prudent.
Defining What You’re Retiring To – Most people have a clear picture of what they’re retiring from—the day-to-day demands of life at Cardinal. What’s harder to define is what they’re retiring to. This can be especially challenging for those in leadership roles, where the structure and pace of work have shaped much of their lives. That’s why it’s so important to envision what your days will actually look like in retirement. One strategy we often suggest is taking a couple of consecutive weeks off—not to travel or tackle a bucket list, but to test out what your future “everyday” might feel like. It can be an eye-opening and clarifying experience.
Consider a Retirement Spending Test – Before giving that two-week notice, it’s wise to try living like you’re already retired. Spend a month or two trimming your expenses to match the income you’ll reasonably have in retirement. This isn’t just about budgeting—it’s about seeing if the lifestyle you can actually afford feels sustainable. If it’s tighter than expected, you’ll have options: increase your savings rate, adjust your investment strategy, or reconsider your ideal retirement timeline. A small trial now can help you retire with confidence later!
Final Thoughts
For Cardinal Health employees, hitting these key milestones ensures a secure financial future. Whether you're early in your career or approaching retirement, taking action now can help you build wealth, minimize taxes, and retire with confidence.
Take care and, as always, stay the course!
Colburn Wealth Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.