WHAT’S YOUR CURRENT LIFE PHASE?
In this phase of financial planning, you may be…
- No longer working and earning an income
- Traveling more, finding joy in family and friends
- Volunteering, mentoring, or supporting causes you care about
In this phase, understanding the best approaches to drawing income from your assets is crucial. There are important tax consequences to consider. And if you haven’t already done so, it’s time to plan for your legacy. Careful wealth management during this phase of life is designed to help protect your future – and preserve assets for your family’s future as well.
How Financial Advisors Can Help Retirees Protect and Grow Their Wealth
Financial advisors for retirees help coordinate the many financial decisions that arise after leaving the workforce. From creating sustainable retirement income to planning for taxes, healthcare expenses, and legacy goals, retirees can benefit from having a trusted fiduciary advisor guiding their long-term strategy.
Retirement Planning Strategies for Retirees
Retirement Income & Investment Planning
A carefully planned strategy for investing and taking distributions from your portfolio is designed to help support your lifestyle in retirement. Our wealth advisors will work with you to create a spending and investment plan designed to help you continue to live the life you want.
Legacy & Wealth Transfer Planning
Once your retirement funding is secure, it can be easier to gift to family members and charities with peace of mind. We’ll regularly review your legacy planning with you to help ensure that your tax positioning and bequest wishes continue to keep abreast of life changes.
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Frequently Asked Questions
What does a financial advisor do for retirees?
For many retirees, retirement can sometimes last 20–30 years. A financial advisor can help retirees develop a plan designed to generate sufficient income that can help support their lifestyle while factoring in investment returns and risks, taxes and inflation.
How much money should retirees keep invested?
That depends on a family’s lifestyle and associated expenses. It’s important to keep a cash reserve for unexpected emergencies that typically covers at least three to six months of expenses. Beyond that, an important consideration is determining the family’s investment allocation between stocks, bonds and alternatives. The mix should be designed to help generate returns to fund their lifestyle while maintaining a level of volatility that is acceptable to the family. While there’s no single right amount, many advisors suggest starting these conversations once you have enough saved to comfortably cover several years of essential expenses beyond your cash reserve. A financial advisor can help assess your financial picture and provide guidance on how much you should keep invested and where it should be allocated.
When should I start taking Social Security?
The longer you wait to claim Social Security, the larger your benefits will be. That said, each family’s situation and priorities are different. The decision is based on many factors, including other sources of income, available assets and living expenses. A financial advisor can help you weigh these factors and compare different claiming ages to find the strategy that best supports your overall retirement income plan.
What are some ways retirees can reduce taxes in retirement?
Managing a family’s tax liability during retirement is best accomplished by planning well ahead of retirement. For example, having assets in a mix of taxable, retirement and Roth retirement accounts allows retirees to draw the income they need for daily expenses from different accounts with different tax consequences. Those already in retirement sometimes choose to invest in municipal bonds or make charitable contributions to help reduce their tax liability. A financial advisor can review your holistic financial picture and provide guidance on ways you may be able to reduce taxes.
Why work with a fiduciary financial advisor in retirement?
A fiduciary financial advisor is required to put the interest of their clients ahead of their own. This means recommended products and strategies need to be in the client’s best interest. It can also be important to understand if your advisor’s firm is evaluated annually by a third party, regarding adherence to fiduciary best practices. You can also look up an advisor’s background and any disciplinary history through FINRA’s BrokerCheck or the SEC’s Investment Adviser Public Disclosure website before you engage them.
What happens to my investments if the market drops right after I retire?
Market drops are a normal part of investing, even in retirement. A well-designed retirement plan includes strategies designed to help manage periods of volatility, such as maintaining a cash reserve, staying diversified and adjusting withdrawals when appropriate to help keep long-term goals on track. A financial advisor can help coach you through market drops and what they may mean for your overall financial plan.
How do I choose a financial advisor?
Choose a financial advisor who takes the time to understand your goals, listens to your concerns and clearly explains their recommendations. A strong advisor relationship is built on trust, open communication and a financial plan tailored to your unique needs.