YOU SPENT DECADES BUILDING YOUR SAVINGS. NOW HOW DO YOU TURN IT INTO A PAYCHECK?
While you're working, retirement planning often focuses on accumulation—saving and investing to build your accounts. Retirement changes the question. Now your savings may need to help provide income for 20, 30 or even 40 years while dealing with inflation, taxes, market changes and unexpected expenses.
RETIREMENT ISN'T JUST ABOUT HOW MUCH YOU HAVE. IT'S ABOUT HOW YOU TURN WHAT YOU HAVE INTO INCOME.
YOUR MONEY MAY NEED TO LAST LONGER THAN YOU THINK.
A retirement beginning today could potentially last several decades. Your financial plan must be capable of adapting to rising healthcare needs, inflation, and market declines.
Age 60
70
80
90
95+
The goal isn't to predict exactly what will happen. It's to build a retirement plan capable of adapting when life doesn't go exactly as expected.
THE PAYCHECK STOPS. THE BILLS DON'T.
During your working years, an employer typically provides the security of a predictable paycheck. Retirement changes the equation completely. Now, your income must be strategically orchestrated from several distinct sources:
- Social Security
- Pensions
- 401(k), 403(b), and 457 plans
- TSP and IRAs
- Roth and Investment accounts
- Cash reserves and other assets
MARKET LOSS FEELS DIFFERENT NOW.
In retirement, you may be withdrawing from the same accounts that are fluctuating. Selling investments during significant market declines can potentially make recovery more difficult.
Retirement-income planning considers:
- Market risk exposure thresholds
- Investment income needs
- Strategic cash reserve levels
- Tax-efficient withdrawal structures
- Reducing reliance on investment withdrawals during down markets
START WITH ONE SIMPLE QUESTION: WHAT DOES YOUR RETIREMENT LIFESTYLE COST?
DESIRED MONTHLY RETIREMENT INCOME
MINUS
SOCIAL SECURITY
PENSION / OTHER RELIABLE INCOME
EQUALS
THE INCOME YOUR SAVINGS MAY NEED TO PROVIDE
That’s the amount your retirement savings may need to help provide. Once you understand the gap, the conversation becomes much more useful.
• How should that income be generated?
• How much should remain invested?
• How much liquidity should you maintain?
• How much market risk are you comfortable taking?
• How might taxes affect your withdrawals?
• Could guaranteed lifetime income have a role?
IT’S NOT JUST WHAT YOU WITHDRAW. IT’S WHAT YOU GET TO KEEP.
Retirement income can come from accounts with different tax characteristics—traditional retirement accounts, Roth accounts, taxable investments, pensions and Social Security. Because of these differences, withdrawal decisions and timing can affect your overall tax picture during retirement.
HYPOTHETICAL EXAMPLE FOR EDUCATIONAL PURPOSES
Couple A and Couple B each have $1,000,000 of retirement savings. Your account balance doesn’t tell the whole story.
SAME SAVINGS. VERY DIFFERENT RETIREMENT INCOME CHALLENGE.
That’s why "How much do I need to retire?" may not be the first question. A better starting point may be: "How much income does my lifestyle require—and where will that income come from?"
COUPLE A
• Needs $8,000/month
• Has relatively little guaranteed income
COUPLE B
• Needs $6,000/month
• Receives $4,500/month from Social Security and pensions
YOUR RETIREMENT INCOME REVIEW
WHAT WOULD YOUR RETIREMENT PAYCHECK ACTUALLY LOOK LIKE?
You’ve seen the different pieces. Now let’s explore how they may fit together for you. Our conversation explores your unique situation to help you understand the tradeoffs involved in turning savings into sustainable income.
YOUR INCOME: Social Security, pensions, other income sources.
YOUR SAVINGS: 401(k), 403(b), 457, TSP, IRA, Roth accounts, investments.
YOUR NEEDS: Lifestyle spending, healthcare, liquidity, family considerations.
YOUR RISKS: Market risk, longevity, inflation, taxes.
YOUR OPTIONS: Withdrawal approaches, Social Security timing, tax considerations, investment strategies, and guaranteed-income strategies where appropriate.
THE GOAL ISN’T TO BEGIN WITH A PRODUCT. IT’S TO HELP YOU UNDERSTAND YOUR OPTIONS AND THE TRADEOFFS INVOLVED.
Start with a complimentary Retirement Income Review.
WHAT HAPPENS NEXT?
NO PRODUCT-FIRST CONVERSATION. NO PRESSURE TO MAKE AN IMMEDIATE DECISION. JUST A BETTER UNDERSTANDING OF YOUR OPTIONS AND WHAT QUESTIONS MAY NEED ANSWERS.
1 — WE START WITH YOUR QUESTIONS
What are you trying to accomplish, and what concerns you about retirement?
2 — WE LOOK AT THE PIECES
Income sources, retirement accounts, Social Security, pensions, taxes, risk and other relevant considerations.
3 — WE EXPLORE YOUR OPTIONS
We discuss which areas may deserve additional analysis and what potential approaches could be worth considering.
YOU DON’T HAVE TO HAVE ALL THE ANSWERS BEFORE WE TALK.
In fact, that’s the point of the conversation. If you’re approaching retirement and wondering how your savings, Social Security, pensions, taxes and investments are supposed to work together, we can start by organizing the questions.
Start with a complimentary Retirement Income Review.
UNDERSTAND MORE. WORRY LESS. RETIRE BETTER.
Retirement planning shouldn't begin with a product. It should begin with understanding your choices.
Any guarantees from insurance products depend on the claims-paying ability of the issuing insurance company. Guarantees do not apply to the investment performance of any variable account. Certain insurance products may provide guaranteed lifetime income, subject to contract terms and the claims-paying ability of the issuing insurance company, and involve tradeoffs such as liquidity, growth potential, inflation considerations, contract provisions and costs.