Retirement Blog

Transitioning into Retirement

March 21, 2024

retirement transition

Retirement should be a chance for you to do and see special things that there may not have been time or money for during your working years. It is a time for schedules and income to change. Regardless of what you have built up over the years, retirement will see you taking out of those savings vehicles instead of continuing to put in. Keeping money in interest-generating accounts or high-performing investments is a great way to continue accumulating wealth, but you may need to set up a withdrawal plan or cash bucket to fund the cost of day-to-day living once you are no longer working.

Managing Risk

Many retirement accounts are invested in some sort of portfolio that will fluctuate with the markets. No investment can be entirely safe from economic downturns, but financial professionals can help steer you towards more conservative investments less likely to suffer severe losses and damaging your nest egg. If you want to remain invested as a source of continued wealth-building during your retirement, it might be a good idea to lean toward strategies that focus more on preserving wealth rather than riskier plans that can be most affected by market volatility.

Consider Your Tax Bill

Common retirement savings accounts such as 401(k)s and IRAs offer tax-free benefits while you are building up your savings over the years. But taxes will be due when you begin to take money out of these vehicles. There are also possible early withdrawal penalties and penalties for failing to meet required minimum distributions as they come due. Selling stocks and withdrawing from accounts can affect your tax bracket, so it is important that you have a plan in place to help manage your retirement finances efficiently so you can keep as much of your savings as possible.

We’re Here for You

We want to help you enjoy everything you want in retirement while keeping your mind at ease about new financial situations that may occur. Reach out to us and schedule time to talk with our experienced advisors. We are happy to help provide the information you need to navigate the road ahead.