Replace My Paycheck with Retirement Income Planning

Retirement is on the horizon and you’re ready to enjoy your hard-earned savings. You know you need a lifetime retirement income plan, but do you know the major changes necessary when switching from growing wealth to withdrawing it? Once you move from building your portfolio to accessing it for income, new risks get introduced that aren’t an issue while you’re working. Proper planning is essential to secure your lifetime retirement income.

Don’t let a market drop or tax bill ruin retirement. Turn your wealth into lifetime retirement income despite any uncontrollable future events. A strategy for your lifetime retirement income will help ensure stability in uncertain times.

5 Questions To Ask A Financial Planner

1. What will my tax liability look like in retirement?
   A large portfolio isn’t automatically an efficient income stream during retirement. Tax strategy is a separate but integral part of a comprehensive retirement plan. Ask your planner to visually show you how different withdrawal strategies could affect your taxes now and over the next several decades.
2. What is the most tax-efficient order for withdraws from my portfolio?
   Remember, your portfolio is not one big bucket of interchangeable money. You need to know which assets to spend first. You’ve likely got taxable investments, retirement accounts, Roth assets, company stock and deferred compensation. Each have different tax rules, withdrawal restrictions, and strategies for generating income. The order you tap them can affect how long your wealth lasts. For example, spending down a taxable account before touching a Roth account gives the Roth time to continue growing tax-free. However, timing is important based on your other income streams in the upcoming years.
3. If the market experiences a major downward trend, where will I get my income?
   You don’t want a market downturn to force important decisions at the worst time. Work with your planner to determine how much liquidity you need, which assets could fund spending during a downturn and when it might make sense to adjust withdrawals.
4. What happens to my company stock and deferred compensation when my paycheck stops?
   Years of executive compensation can leave you with substantial wealth tied to your employer. Ask how concentrated stock, deferred compensation, stock options and other benefits should be integrated into your income strategy, rather than managed as separate decisions.
5. Does my income plan give me the flexibility to change my mind?
   Your plans for retirement may evolve. You might decide to stop working sooner, join a board, travel more or even go back to work after initially retiring. Your financial plan should provide the freedom to make those choices without having to rethink your entire financial life.

Your wealth worked hard for you during your career and now it’s time to make it work for your life. If you’re within three to five years of your target retirement date, let’s build your custom income engine together.