Retirement is hopefully about relaxing and celebrating life. In order to put your mind at ease during retirement, you really need to have saved throughout your earning years. Then, as you reach 5 – 10 years before retirement, it is very important to start considering your options for a seamless transition into your golden years. Upon retirement, you will likely move from the accumulation phase to the distribution phase of investing your nest egg.

In retirement, your earned income will likely be decreasing or ending. On the other hand, Social Security (and possibly defined benefit pension) income may start kicking in. In most cases, however, there will be a need to begin taking distributions from your retirement accounts to make ends meet. In fact, at age 70.5, you will actually be required to start taking minimum distributions (RMD’s) or prohibitive tax penalties would apply.

For most retirees, one of their biggest fears is that they will outlive their assets. Your nest egg will need to last longer than it did for previous generations due to increased life expectancies. We are here to review your retirement plan with you in order to help alleviate this fear. Retirement planning includes budgeting, review of social security (and pension) options, and possibly redeploying your retirement assets in more conservative / reliable ways to help structure a sustainable retirement.

In retirement, it is important to realize that the makeup of your budget will likely change significantly. The days of mortgage payments and child-rearing costs may be coming to an end. However, vacation costs, medical expenses, and inflation are a few likely things to increase. We can help you review how the expenses in your retirement budget measure up against your known sources of retirement income. Then we can help you create an appropriate investment program to address any possible income shortfall.

Your pre-retirement investment strategies may not be suitable during retirement and it’s important to review this. If you retire during a bear market, simple dollar cost averaging distribution techniques can significantly damage the nest egg you are relying on. In most cases, more conservative strategies are more appropriate.

For many retirees, their primary goal is not to lose money, but they secondarily aim to receive a modest return. Fixed annuities in retirement have become very popular lately because they can create a guaranteed lifetime income stream. While annuities may carry a negative stereotype from the past, they are worth serious consideration because many features have been totally revamped in recent years and can now provide enhanced benefits. 

Other retirement planning activities include RMD strategizing as well as estate planning. Whether you ultimately want to efficiently transfer wealth, or leave a legacy through planned charitable giving, we’re here to help you determine what’s right for your unique retirement scenario.