Inside Look: Retirement Income Planning
Ever wondered what retirement income planning really looks like? Pay attention if you’re close to retirement or retired!
The 5 things we prudently monitor.
- Distribution Management – (Pension, Social Security, Roth, 401(k), IRA, After-Tax Brokerage, Deferred Comp, Etc.) You have accumulated these funds for 20, 30, 40 years, and now it’s time to monetize them into retirement income.
- Risk Management – We seek to preserve your capital against the sequence of return risk. Negative rates of return in the early years of retirement can derail your retirement income.
- Tax – We plan for the net after-tax dollar amount that needs to be deposited in your checking account each month that aims to maintain your standard of living.
- Investments – Monitor investments to make sure they aren’t too conservative or overly aggressive to reach your income goals.
- Legacy – Plan for the distribution of the estate after the second spouse’s death. Does it go to humans/charities, or to both?
This process is executed year over year. Ongoing monitoring strives to ensure that income is being distributed tax efficiently and assets are invested appropriately to support income distributions and legacy goals. Your financial situation changes over time just like the Fed/State income tax laws.
Do you expect all of this to fall into place without a plan? Plan accordingly!