Income Planning with a 401(k) or IRA

You have saved most of your career to hopefully live the retirement you have always dreamed of.  Now comes the difficult task of using your savings and investments as income over those retirement years.  You may have questions such as:

1)  How much can I afford to take out of my account each year?
2)  Where should I be invested in retirement?
3)  I get mailers about annuities, should I buy one?
4)  Will my spouse be able to maintain his/her lifestyle when I am not here?
5)  Will I pay taxes on the income from my investments?

New clients often express a frustration with “how it all fits together.”  That may not sound overly technical, but it best describes what we see on a day- to-day basis.  What is “IT?”  “IT” can include a public pension, a spouse’s Social Security, health care at retirement, 403(b) or tax-sheltered annuity plans, the ideal time to retire, the PLOP plan, investment decisions, and many other things.  The list can be quite exhausting and it is not surprising that people throw up their hands and put off decision-making as long as possible.  There are many moving pieces to a retirement income plan.  Our job is to make sure our clients see these retirement income pieces differently when they walk out our door.