When Will You Need Retirement Income?

So I want to talk about when will you need your retirement income? So this kind of has been brought about over these, it seems like I’ve had a lot of initial meetings with folks that are coming in for the first time and they’re getting ready for retirement. And there’s kind of a mindset of oh my, I’m going to need all my savings all at once. That’s unlikely. I mean sure, it could happen that way, but think of it. You’ve probably saved for 20, 30, 40 years. You’ve been putting money away hoping to get to this day of retirement, right? Now, you’ve reached that point of retirement and we want to turn this savings into a paycheck. Well, when are you going to need that? Well day one of retirement, it unlikely you’re going to need all of your retirement savings. If you do, we probably have big issues, right? This is probably going to be a long-term thing. You may be in retirement 10, 20, 30 years or more depending upon that. It’s funny, one of our clients who was in joking the other day with me and he was kind of bragging that he had now been, he’s been getting up there in age a little bit. And he was bragging how he’s been collecting his Pension longer than he worked for one of the auto makers. And how neat is that, to have that longevity there? But also at the same time, it’s a little scary right, that you might be retired almost as long as you’ve been working. So again, when do we need this retirement income? Probably over time. And so your retirement plan needs to have this mapped out. So how A, how is it going to generate income for that long time? How are you going to be subject to too much risk so we don’t have great fluctuation during this plan? And also, what buckets or what accounts should we be drawing out of this, when and where? Remember, depending on how it’s structured, maybe you have different taxable types of accounts or it would make sense to do some tax planning. So various dollar amounts depending upon the years may make a lot of sense in that with different amounts. So again, my main take away for you with this is when do I need this income? Probably over time, not all at once. So when we enter retirement, there’s still likely time on your side hopefully that you still are a long-term investor for this. So we need your money to last us a long time. So there likely needs to be some growth and other various stuffs in there. So don’t get trapped in the thought that I’m just getting ready to retire. I’m heading into retirement and I need all this money at once. Because guess what? If you use it all in day one, there’s probably a lot of time left that’s going to be hard to do that. So again, having a retirement plan that’s holistic and very comprehensive to your situation is vitally important. We’d love to sit down with you and walk through that plan and build that income, investment, tax, estate and insurance plan for you, so you can plan to retire well.