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Schulfer & Associates, LLC

Setting Up Retirement Income: How Does That Work?

By LouAnn Schulfer,  AWMA®, AIF®
Accredited Wealth Management Advisor®

Accredited Investment Fiduciary

 

We work with people who have saved and invested for decades.  They understand how contributions work into their retirement accounts because they have been funding their investments for the greater part of their working lives.  We plan for the next chapter, retirement, and along with it, retirement income distribution.  So how does that work?  How do you take income out of the stockpile that you’ve grown accustom to putting money in to?   The answer differs from person to person because each situation is personal and has its own complications.  From a high-level perspective, here are a few points to ponder.

 

Determine the monthly income that you’ll need and plan for occasional withdrawals for things like new cars.  Factor in some cushion for unplanned expenses and opportunities.  Assess your investments to determine whether they are appropriate for your distribution plan.  Combine the effects of social security decisions, pension options and potential sales of assets down the road.  From your accounts, set up the distributions when you want them:  most people prefer ACH directly into their checking accounts where bills are then paid.  Get your federal and state withholdings dialed in so you are not surprised with potential penalties on tax-day.  Assess which account you should take money from and when.  Pre-tax?  Roth?  Non-retirement?  Plan for Required Minimum Distributions.  Remember that taxable income affects things like Medicare premiums.  Build in flexibility, stress test your plan and consider beneficiary designations.  How will your income plan and your investments be monitored? I have a client who years ago when he first came to me, told me he no longer wanted to be studying Morningstar reports, he wanted to do more fishing!   Retirement income distribution is an ongoing management process that continues even long after it has been set up.  How will yours work?

 

LouAnn Schulfer is co-owner of Schulfer & Associates, LLC Wealth Management and can be reached at (715) 343-9600 or louann.schulfer@lpl.comwww.SchulferAndAssociates.com

 

Securities and advisory services offered through LPL Financial,a Registered Investment Advisor.  Member FINRA/SIPC.